Ax Ventures Pymar Fund Presentation At Infodev. World Bank. Ifc Global Forum Helsinki June 2011

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  • 1. Investment and Entrepreneurial Opportunities in Latin American Global Forum on Innovation & Technology Entrepreneurship “ Creating Sustainable Businesses in the Knowledge Economy” Lisandro Bril – Managing Partner Ax Ventures- Pymar Fund [email_address] @lisandrobril Skype: lisandrobril Helsinki, May 30- June 3 2011
  • 2. LAC Business Environment is Progressing Source: Latin American Venture Capital Association (LAVCA) 2010 Score Card Uruguay Argentina Mexico Chile and Brazil have the best scores according to LAVCA Score Card
    • Strong growth and agreements
    • Fund protection laws
    • Strong capital Markets
    • IP Protection
    • Judicial Transparency
    • Quality accounting practices
    LAVCA 2010 Score Card
  • 3. 6 out of the 10 most entrepreneurial countries are in LAC Source: Global Entrepreneurship Monitor (GEM) 2009 % of the population 18- 64 that are involved in an entrepreneurial venture 8,8
  • 4. The VC ecosystem in LAC is growing strongly Source: LAVCA 2009 report highlight
    • 170 funds are part of the Latin American Venture Capital Association (LAVCA)
    • The total funds raised for local and international investment in 2009 were 6.4b and 8.1b in 2010
    • Over 200 deals were reported in 2009 for a total of 4.6b
    • Over 50 exits were reported in 2009 for a total of 2.6b
    • Brazil, Chile, Colombia, Mexico and Peru have launched successful government VC sponsored programs
    • Local pension funds in Brazil, Peru and Colombia are important source of capital
  • 5. MOST DEVELOPED VC ECOSYSTEMS Brazil, Chile, Colombia, Peru MOVING TOWARD CONDUCIVE BUSINESS AND/OR REGULATORY ENVIRONMENT Mexico, Uruguay, Argentina, Costa Rica CURRENTLY DO NOT HAVE CONDUCIVE BUSINESS AND/OR REGULATORY ENVIRONMENT Panama, Barbados, Bahamas, Jamaica, Suriname, Trinidad & Tobago, Bolivia, Paraguay, Belize, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Nicaragua, Ecuador, Guyana, Venezuela
    • Entrepreneurship is flourishing
    • Angel groups starting
    • Incubators are commercializing
    • Entrepreneurs starting to understand VC
    • Corporate governance and accounting standards receiving attention
    • Few capable local VC fund managers
    • Funds with track record in PE only
    • Some government actions are not investor-friendly
    • VC laws need to be improved or put in place (e.g. Argentina, Mexico)
    • Tax treatment of VC investments needs improvement
    • Exit options are limited
    • Pension funds do not invest or are not permitted to invest in VC
    • No organized government support to VC
    • Minority shareholder protection rights are ambiguous
    • Early stages of corporate governance awareness
    • Angel groups starting
    • Scarcity of capable local VC fund managers
    • Business environment at times challenging
    • No local laws for VC investing, so only offshore funds are possible
    • DFIs and foreign PE regional funds are the main investors in VC/PE
    • Pension funds not investing in VC
    • Difficult to generate adequate deal flow due to size of markets
    • Exit options are limited
    • Government does not provide organized support to VC industry
    • Minority shareholder protection rights are ambiguous
    • Low levels of entrepreneurship
    • Few incubators
    • Quality of accounting standards is ambiguous
    • VC and seed investing not well-known
    Source: “Venture Capital at the MIF: Empowering SMEs and entrepreneurs in Latin America and the Caribbean”, presentation by Susana Garcia-Robles, FOMIN, April 2010 Status of VC Ecosystems in LAC
    • Most promising VC ecosystems
    • Acceptable legal, tax and regulatory frameworks in place
    • Fund managers with track records
    • Local capital markets and strategic exits possible
    • Numerous SMEs and entrepreneurship culture
    • Still room for improvement
    • PE is most developed in Brazil, but early stage VC, seed and angel investing needs to be developed further
  • 6. PYMAR is a USD 22 Million Fund– First USD 18 Million closing sponsored by the Fundación Empresa y Crecimiento de España Source: PYMAR Fund
      • The Fundación Empresa y Crecimiento (FEC) is the fund Sponsor
      • Local investors and Key Managers also invested
      • The Fund is managed in Argentina by Ax Ventures
    Multilateral Development Organization FOMIN-BID (5 USD MM ) Spanish Government FIEX- COFIDES (5 USD MM) PYMAR FUND (18/22 USD MM) FEC (5 USD MM) CAF (2 USD MM)
  • 7. PYMAR invests in Argentinean export-oriented and tech-based companies Talent Scalability
    • Software apps
    • Medical equipment and services
    • Outsourcing / Nearshoring services
    • Multimedia content / Videogames
    • Design-based products
    • Biotech
    • Green technologies
    PYMAR Fund opportunities and investment portfolio Source: PYMAR Fund Consulting services
  • 8. Investment target is USD 500K to 3MM to scale and globalize small & medium size businesses in high potential areas Source: PYMAR Fund Growth years $ 1 2 3 4 5 6 7 8 Attractive Opportunities USD 15-30MM Global niches Capital Need
    • Late Seed and First Round of investment needed for:
    • Scale to reach international markets
    • Recruit professional management
    • Product development
    USD 500K to 3 MM Remain small
  • 9. PYMAR positions itself as an active investor that provides both value and financing Source: PYMAR Fund Contacts
    • Experience in the development of global strategies
    • Access to follow up investment rounds
    • International Network
    • - Financial, Legal, Tax
    • - Biz Dev
    • - Recruiting
    • - Investment syndication
    • Access to local and intenational experts
    • Synergy between portfolio companies
    Strategy Expansion Technology Synergy Value Added = Smart Money
  • 10. Lisandro Bril [email_address]
    • Mr. Bril is Managing Partner of Ax Ventures – a Venture Capital Fund responsible for the management of the PYMAR Fund for Argentina – which is sponsored by the Fundación Empresa y Crecimiento de España. PYMAR invests in export-oriented and high-potential Argentinean Small and Medium size companies that produce value-added products. The Fund has USD 22 Million under management and its investors include the FEC, the FOMIN, COFIDES, the CAF and Argentinean private investors.
    • Was founder and CEO of Holdinvest Technology Fund. It invested in the financial software company Technisys, where he is a Director. Before, he successfully managed the i5 Fund, a USD 20 Million Fund sponsored by Hicks Muse, which invested in Neoris (formerly known as Amtec).
    • He founded a local Executive Search company which partnered with Booz Allen & Hamilton and was a partner in the Argentinean subsidiaries for Spencer Stuart and Korn Ferry.
    • He served as Foreign Trade Subsecretary.
    • He was Co-founder and Director of Endeavor Argentina, NGO that fosters the development of high impact entrepreneurs and the Venture Capital ecosystem. He is a member of the Consulting Board of the San Andrés University Business School and a Director for the Equidad Foundation, which tries to bridge the digital divide gap in Argentina.
    • He holds a BA in Economics from the Buenos Aires University (with honors) and a MPA form Harvard Kennedy School.