Whether it’s through leveraged buyouts, growth capital or venture capital, private equity groups are zeroing in on Latin America. According to the Latin America Venture Capital Association, 2010 was a record year for fundraising in the region with $8.1 billion. At least some of that money is reaching technology services companies directly through funds like Riverwood Capital, a major player behind Argentinean IT services provider Globant.
By Luke Bujarski
Mexico’s IT startup community may soon be getting another injection of much needed venture capital from a California-based seed fund called MexicanVC. According to César Salazar, General Partner with MexicanVC, the big multinationals and integrated IT services providers are not the only ones looking to capitalize on low-cost IT talent and access to new markets. While never risk-free, turning a profit on IT startups can be a lot cheaper when done in Mexico than in the US. At least, this is the business model MexicanVC is applying as it looks to handpick the next round of applicants for their six-month mentoring program.
Part I: Risk-takers should be applauded not frowned upon, say pioneering entrepreneurs
By Patrick Haller
In Costa Rica tradition dictates that university graduates should get a job with either an established, national company, or with one of the major US multinationals, such as Intel, now based in and around San Jose. Facing stigmatization, the risk of failure, lack of funding, growing pains and steep competition for clients and qualified employees, there are some Costa Rican who have chosen a different path.
Source: Latin Business Chronicle
Venture capital is a driver of entrepreneurship in Latin America.
Venture capital (VC) is one of the most challenging yet promising arenas of finance in the Americas today. While much attention has centered on the U.S. venture capital market, in the wake of the 2008-2010 financial downturn in that country, Latin America is emerging as the next frontier for entrepreneurial funding.
Funding for Private Equity (PE) and VC deals in Latin America more than doubled from 2009 to 2010, topping $8.1 billion. As for the first half of 2011, LAVCA (Latin American Venture Capital Association) reports nearly $7.5 billion in fundraising and investments—impressive performance by any measure. Nonetheless, VC represents only a tiny portion of the PE/VC category in Latin America. Compared with the United States, VC comprises 25 percent of total VC/PE commitments; in Latin America, it is just 5 percent. In 2010, the …
By Patrick Haller
There is little doubt that the flow of capital and mindshare between Latin America and Silicon Valley is gaining real momentum.
Constanza Nieto, Founder and CEO of Global Tech Bridge based in Silicon Valley, has been driving partnerships between Latin and North America for nearly a decade and is very active in trying to help startups build a realistic vision to sell services internationally. She talked with Nearshore Americas about the opportunities buried in the minefields, and why this is the right moment for the two worlds to build bridges.