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Harvard Business School - Latin America y Venture Capital ClubVenture Capital Opportunities in South America        A Fund...
Lisandro Bril has 30+ years of Entrepreneur, Management            Consulting and Venture Capital experienceLisandro Bril ...
Table of Contents•   The Latin American opportunity•   Our experience in VC Investing•   Going forward     ‒ New Fund     ...
Table of Contents•   The Latin American opportunity•   Our experience in VC Investing•   Going forward     ‒ New Fund     ...
Latin America is an attractive region for investments due to itsscale and its fast growing market place                   ...
… as well as an expanding GDP growth of 5% fueled by externaland domestic demand                              Selected Lat...
The region is characterized by an improvement-drivenentrepreneurial culture                               Improvement-Driv...
The entrepreneurial Ecosystems in Brazil, Chile, Colombia andPeru are the most attractive for VC Investment               ...
Which is highly correlated with the Institutional Framework forVC. There is still room for huge growth of PE-VC/GDP       ...
Colombia, Mexico, Peru and Chile are the fastest growingdestination for Private Equity investments over the next 2 years  ...
Table of Contents•   The Latin American opportunity•   Our experience in VC Investing•   Going forward     ‒ New Fund     ...
We have managed 4 funds -2 Latin American and 2 Argentinian-in technology innovation with successful returns              ...
AxVentures/ PYMAR and HoldInvest                                                                                Date      ...
Hicks Muse      Company                       Description            Outcome              Lessons Learnt                  ...
Table of Contents•   The Latin American opportunity•   Our experience in VC Investing•   Going forward     ‒ New Fund     ...
The Strategy of the Fund is to invest in the best entreprenuerialteams in LA which are able to escalate oportunities globa...
We have the capability to execute a VC strategy in Latin America                THE EMVC TEAMnetworked with global key inn...
Investment target is US$500K to 7/10US$MM to scale up andglobalize entrepreneurial companies with high potential       $  ...
Table of Contents•   The Latin American opportunity•   Our experience in VC Investing•   Going forward     ‒ New Fund     ...
EMVC1’s Team plays a role as a smart and hands on investor inkey value added functions                                    ...
The Team will cover the geographies, industries and functionswith 1 Managing Partner, 2 Principals and 4 Senior Associates...
Table of Contents•   The Latin American opportunity•   Our experience in VC Investing•   Going forward     ‒ New Fund     ...
This is the right place to be…?              Opportunities                       Functions • Geographies: Emerging Markets...
GPs and LPs operating in Latin America         GPs Latam                                                     LPs Latam    ...
Work session               25
Email:      lbril@axventures.comTwitter:    @lisandrobrilLinkedin:   http://ar.linkedin.com/pub/lisandro-bril/7/709/17ªBlo...
Table of Contents•   The Latin American opportunity•   Our experience in VC Investing•   Going forward     ‒ New Fund     ...
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Opportunities for MBAs - Harvard Business School and MIT Sloan Latin America & Venture Capital Clubs - MIT Sloan School of Management , September 2012

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Opportunities for MBAs - Harvard Business School and MIT Sloan Latin America & Venture Capital Clubs - MIT Sloan School of Management , September 2012

  1. 1. Harvard Business School - Latin America y Venture Capital ClubVenture Capital Opportunities in South America A Fund Managers Perspective Boston, September 2012 Lisandro Bril Founder & Managing Partner HoldInvest, AxVentures/Pymar & EMVC1 Twitter: @lisandrobril 1
  2. 2. Lisandro Bril has 30+ years of Entrepreneur, Management Consulting and Venture Capital experienceLisandro Bril is Managing Partner of AxVentures – Pymar Fund’s manager in Argentina. He is the founder and ManagingDirector of Holdinvest S.A., a company focused on providing advisory on venture capital issues to investors andentrepreneurs in Argentina. He has almost 30 years of experience as an entrepreneur and a Top ManagementConsultant on Strategy, Organization and Executive Search for world class companies.The trajectory of Mr. Bril in the field of venture capital is associated with his auspicious experience as Angel investor(Sales ESS sold to Oracle) CEO of BGS Seed Capital Fund in Latin America –Argentina-Brazil-Mexico and Venezuela) andCEO i5/Hicks Fund in Argentina, those funds invested U.S. $ 17.5 MM in emerging technology companies. The fund wasable to repay money to investors through the successful case of Amtec Software Company, now Neoris, as well asComunia, B2B Latin America, PalmSite, Gemelo.Prior to this, Mr. Bril founded Booz Allen Hamilton in Argentina, and was it’s Managing Director. He worked on severalprojects in South American financial services, automotive industry restructuring, privatization and diversification ofconglomerates in the chemical and steel industries, both in the public and private sector. Mr. Bril also worked for sevenyears as Partner at both Spencer Stuart and Korn/Ferry, the Executive Search firms.Between 1985 and 1989, he was Undersecretary of State for Foreign Trade, and as such, he was responsible for theadministration of exports and imports and for the exports promotion policies of Argentina’s non traditional sectors. Heactively participated in the creation of MERCOSUR.Mr. Bril is co-founder of Endeavor Argentina and currently advises its Global Management on Seed Capital Financingand is a participant in Endeavor Catalyzer VC Fund; co-Founder and Treasurer of Fundación Equidad; former Presidentof Harvard Club Argentina; former member of the Foreign Trade Commission of the American Chamber of Commerce inArgentina (AmCham) and the International Organizations Commission of the Unión Industrial Argentina (ArgentineIndustry Organization). Mr. Bril also participated in the organization of the Group of 50 Latin-American BusinessLeaders, based in Washington (Carnegie Endowment for International Peace).Mr. Bril holds a BA in Economics (Cum Laude) from University of Buenos Aires, and a MPA from Harvard John F.Kennedy School of Government. He also worked as a Case Writer for Harvard Business School. 2
  3. 3. Table of Contents• The Latin American opportunity• Our experience in VC Investing• Going forward ‒ New Fund ‒ Team• Opportunities for MBAs• Annex 3
  4. 4. Table of Contents• The Latin American opportunity• Our experience in VC Investing• Going forward ‒ New Fund ‒ Team• Opportunities for MBAs• Annex 4
  5. 5. Latin America is an attractive region for investments due to itsscale and its fast growing market place Emerging Middle Class  580 million people  Combined GDP USD 5.15 trillion  Average GDP growth 5.7% for 2010 and 4% expected for 2011  Portuguese language: 200 MM, including Portugal  Spanish language: 480 Million people including Spain and US Hispanic Urbanization  20 countries  5 cities with over 7MM people Entrepreneurship and Innovation  Challenges: sustain growth, reduce poverty and inequality  Innovation and entrepreneurship are critical  Key player in Cloning-Copycats, Open Innovation and Hybrid projects  Latam executions of USA technology innovation for Emerging Markets (eg. Legatum)Source: World Economic Outlook, April 2010, IMF 5
  6. 6. … as well as an expanding GDP growth of 5% fueled by externaland domestic demand Selected Latin American Countries Size and Performance 2011 GDP Real GDP Growth International US$ PPP Billion 10.0% 15,065 8.0% 8.0% 6.9% 6.0% 5.1% 4.4% 38% 4.0% USA 2.0% 3.0% -0.9% Selected Countries 1.5% 1.8% 5,790 0.0% 2008 -0.3% 2009 2010 2011 2012 -2.0% -4.0% -3.5% Selected LA Countries USA -6.0% Selected Countries: Argentina, Brasil, Chile, Colombia, Mexico, Peru and UruguaySource: Euromonitor 6
  7. 7. The region is characterized by an improvement-drivenentrepreneurial culture Improvement-Driven Opportunity Entrepreneurial Activity: Relative Prevalence (*) 60 53 55 50 54 % of the population 18- 64 that are involved in 46 47 50 41 41 34 an entrepreneurial 40 30 20 venture 10 0 Dinama… Reino… Hungría Croacia Argentina Sudáfrica Brasil Grecia Japón Francia Finlandia China Chile Noruega Perú Eslovenia Uruguay Italia Bélgica Alemania Holanda EE.UU. E. Arabes Colombia Letonia España Islandia Malasia Rusia(*)Improvement-Driven Opportunity Entrepreneurial Activity: Relative Prevalence: Percentage of those involved in TEA who (i) claim to be driven by opportunity as opposed to finding no other option for work; and (ii) who indicate the main driver for being involved in this opportunity is being independent or increasing their income, rather than just maintaining their incomeSource: Global Entrepreneurship Monitor (GEM) 2009 7
  8. 8. The entrepreneurial Ecosystems in Brazil, Chile, Colombia andPeru are the most attractive for VC Investment CURRENTLY DO NOT HAVE CONDUCIVE BUSINESS AND/OR REGULATORY ENVIRONMENT Panama, Barbados, Bahamas, J amaica, Suriname, Trinidad & MOVING TOWARD CONDUCIVE Tobago, Bolivia, Paraguay, Beliz BUSINESS AND/OR e, Dominican Republic, El MOST DEVELOPED VC REGULATORY ENVIRONMENT Salvador, Guatemala, Haiti, Hon ECOSYSTEMS Mexico, Uruguay, Argentina, C duras, Nicaragua, Ecuador, Guy Brazil, Chile, Colombia, Peru osta Rica ana, Venezuela • Entrepreneurship is flourishing • Early stages of corporate governance • Needs to be developed further awareness • Angel groups starting • Most promising VC ecosystems • Angel groups starting • Incubators are commercializing • Acceptable legal, tax and regulatory • Scarcity of capable local VC fund • Entrepreneurs starting to frameworks in place managers understand VC • Fund managers with track records • Business environment at times • Corporate governance and • Local capital markets and strategic challenging accounting standards receiving exits possible attention • No local laws for VC investing, so only • Numerous SMEs and offshore funds are possible • Few capable local VC fund managers entrepreneurship culture • DFIs and foreign PE regional funds are • Funds with track record in PE only • Still room for improvement the main investors in VC/PE • Some government actions are not • PE is most developed in Brazil, but • Pension funds not investing in VC investor-friendly early stage VC, seed and angel • Difficult to generate adequate deal flow • VC laws need to be improved or put investing due to size of markets in place (e.g. Argentina, Mexico) • Exit options are limited • Tax treatment of VC investments needs improvement • Government does not provide organized support to VC industry • Exit options are limited • Minority shareholder protection rights • Pension funds do not invest or are are ambiguous not permitted to invest in VC • Low levels of entrepreneurship • No organized government support to VC • Few incubators • Minority shareholder protection • Quality of accounting standards is rights are ambiguous ambiguousSource: “Venture Capital at the MIF: Empowering • VC and seed investing not well-knownSMEs and entrepreneurs in Latin America and theCaribbean”, presentation by Susana Garcia-Robles, FOMIN, April 2010 8
  9. 9. Which is highly correlated with the Institutional Framework forVC. There is still room for huge growth of PE-VC/GDP LAVCA Scorecard & PE-VC/GDPSource: Adapted from LAVCA, LAVCA 2011 Scorecard: The Private Equity and Venture Capital Environmentin Latin America, (NY, NY: LAVCA), 2011, p. 5. 9
  10. 10. Colombia, Mexico, Peru and Chile are the fastest growingdestination for Private Equity investments over the next 2 years LPs Planned Changes to EM PE Investment Strategy Over the Next 2 Years 0% 10% 20% 30% 40% 50% 60% Latin America (ex. Brazil) 38% 16% Southeast Asia 41% 12% Brazil 24% 28% China 26% 18% Turkey 29% 14% India 16% 20% Sub-Saharan Africa 20% 21% Central/Eastern Europe 11% 13% Russia/CIS 11% 10% MENA 11% 17% Expand Investment Begin investmentSource: Emerging Markets Private Equity Association “Global limited partners survey” May 2012 10
  11. 11. Table of Contents• The Latin American opportunity• Our experience in VC Investing• Going forward ‒ New Fund ‒ Team• Opportunities for MBAs• Annex 11
  12. 12. We have managed 4 funds -2 Latin American and 2 Argentinian-in technology innovation with successful returns Fund Vintage LPs Stage Capital Companies • FEC • Keclon • MIF • Zauber AxVentures/ • COFIDES Seed & • GranData 2009 USD 18MM • Pymar Series A Cupoint • CAF • PixOwl • Private • BioScience Argentine HoldInvest Family • Technisys Offices & Technology 2008 High Net Growth USD 1MM (software for Banks) Fund Worth Individuals • Amtec/ Neoris 1 • Despegar Hicks Muse • BonVivir I5 Hicks & Seed & USD 13.5 • Certant 1999 MM • Gemelo Muse / BGS Management Series A • Comunia Affiliate • Advertium • Palmsite • B2B Latin America 1) Mercado Libre was a direct investment of HMTF Partners 12
  13. 13. AxVentures/ PYMAR and HoldInvest Date Date Company Description Invested Realized Development of an enzyme that raises the quality of vegetal oil derived biodiesel, by reducing 12/11 - the steryl-glucosides amounts. Software development boutique focused in applications for social 12/11 - networks. Strong internet user analytics for Gran financial sectors 06/12 - Data telecommunications and electronic commerce. Daily deal aggregator website for more than 50 cities among Argentina, Brazil. 09/11 - Spain, Mexico, Colombia, Chile and Peru. Mobile Video Games 06/12 - Research, development and production of medical diagnosis equipment for 03/11 - neurology, neurophysiology and cardiology Platform of integrated products and services targeted at the 01/08 - banking industry. 1) Estimated according to EVCA methodology 13
  14. 14. Hicks Muse Company Description Outcome Lessons Learnt Amtec, now Neoris. Sold for 30MM Great founder IT consulting Diluted before Internet based travel Great founder’s team, but success. Now agency adoption took time @Sequoia 1B Recycled into La Great founder’s team, but Wine club Nacion adoption took time Software Very professional, but lack development and Surviving of commitment and passion service company Too early for cloud Cloud back up Surviving computing Group buying turned Comunia into Cuponica, now Recycle Too early Sonico Great founders team. Lack Advertisement Advertium market place Closed of commitment of strategic partner Electronic commerce Palmsite market place Closed Wrong founder Mercado Libre was a direct investment of HMTF Partners 14
  15. 15. Table of Contents• The Latin American opportunity• Our experience in VC Investing• Going forward ‒ New Fund ‒ Team• Opportunities for MBAs• Annex 15
  16. 16. The Strategy of the Fund is to invest in the best entreprenuerialteams in LA which are able to escalate oportunities globally EMVC1 Investment Strategy Focus The Approach Stages Team, Scalability and Hands-On  Seed and Early stage investments Participation  US$ 500K to 7/10 MM per target  Best Teams  US$ 10/20 MM for selected follow ons  Founders Market Fit Business Plays  Scalability  Disruptive models (50%)  Best Practices  Copy cats (50%)  World and local network Industries/ Businesses  Hands-on Investment  Internet and TME1  Seats in Boards of Directors by Partners and Principals  Biotechnology/ Nanotechnology  GP that combines businessmen,  CleanTech entrepreneurs and hands-on consulting  Software applications (SAS) capabilities  Health Equipment and Services  Formal Investment Process  Accelerator (?)  1% GP commitment1)TME = Telecommunications, Media and Entertainment 16
  17. 17. We have the capability to execute a VC strategy in Latin America THE EMVC TEAMnetworked with global key innovation hubs and financial markets London Silicon New York Valley Tel Aviv Bogotá Mumbai Medellin (Pune) Minas Gerais Lima Rio de Janeiro Sao Paulo Santiago de Chile Buenos Aires Company & Investment Locations Technology Hubs Financial Hubs 17
  18. 18. Investment target is US$500K to 7/10US$MM to scale up andglobalize entrepreneurial companies with high potential $ Attractive Market Opportunities Global Niches Market valuation of $20/50 MM Series B targeting $500MM US$500K to Growth US$ 7/10MM Investment Rounds to:  Complete the development of prototypes and gain client access. Capital  Product development Need  Scale to reach global and regional markets.  Recruiting of key talent for management team.  Investment readiness for Series B rounds 1 2 3 4 5 6 7 8 yearsSource: New Fund V 18
  19. 19. Table of Contents• The Latin American opportunity• Our experience in VC Investing• Going forward ‒ New Fund ‒ Team• Opportunities for MBAs• Annex 19
  20. 20. EMVC1’s Team plays a role as a smart and hands on investor inkey value added functions  Leaded by a team with experience in the development of global Brazil, Chile, USA Silicon Strategy strategies and new business Valley , Europe, and India models Access to follow up investment funds  Regional and Global entrepreneurial development Expansion Contacts services and VC Network • Financial, Legal, Adding Tax, IP Value • Clients • Key Professional and Board Recruiting  Access to local and • Investment international syndication mentor experts Technology Synergy  Maximization of portfolio synergies and complementationSource: New Fund 20
  21. 21. The Team will cover the geographies, industries and functionswith 1 Managing Partner, 2 Principals and 4 Senior Associates Investors Lisandro Bril Advisory Council & Angel Investors Network Founder, Managing • Brazil, Colombia, Chile, Argentina. Partner and Key Man Silicon Valley. Israel, • Internet, Biotech, Nanotech, Clean Brazil, USA Tech, Health Geography Industry Function Bio & Control & Finance Colombia Argentina Human Investor Brazil Internet Nano CleanTech and Peru Chile Resources Relations Tech Legal Support LB A2C 1 Strategic A2C 1 AT NK A2C 1 LB Managing Management IF Alliance LB GF GCH SM LB2 Partner Affiliate LB2 JF Senior Senior Associate Associate TBC SM & DH Associate Associate 1) A2C is a Management Affiliate and Venture Partner, Management Consulting Firm (www.a2cadvisors.com) 21
  22. 22. Table of Contents• The Latin American opportunity• Our experience in VC Investing• Going forward ‒ New Fund ‒ Team• Opportunities for MBAs• Annex 22
  23. 23. This is the right place to be…? Opportunities Functions • Geographies: Emerging Markets • Strategy and Business Model • Brazil compass. Customer development • Colombia approach. • Mexico • Chile • Finance • Peru • Valuation • Argentina ? • Venture Finance • Industries • Tax and Legal • Equity Research • Internet • TME • Human Resources • Biotechnology • Start up organizational development (Luana Bichuetti – HBR article) • Nanotechnology • Talent Management: • Cleantech recruiting, compensation, retention • Health • Education • HR and Knowledge Management Processes • Careers: • Hackatons • Entrepreneurial • Marketing: Product Managers for Digital • Venture Capital Storefronts • Private Equity • Lean Start Up Paradigm • Corporate 23
  24. 24. GPs and LPs operating in Latin America GPs Latam LPs Latam NAFINSAWayra/ Amerigo/ Telefónica - FINEP Canadian LPs BancoldexPanLatam Silicon Valley BankMonashees-Br Marc Horsley BridgeRedpoint – Br Andreessen Adam StreetKaszek - PanLatam CORFO Harbour VestPromotora -Co Hamilton LaneAlta Ventures -Mx 57 StarsEqutias - Ch Carnegie CorporationAustral- Ch Accelerators Latam University of TexasAurus- Ch 21212 – Br EndownemtCAP Ventures-Ar  Ángeles – MX Grove Street (?)Ax Ventures / Pymar Fund- Nextp – Ar, Ch, Co Altius (?)Ar Quasar - PanLatam University of Virginia 24
  25. 25. Work session 25
  26. 26. Email: lbril@axventures.comTwitter: @lisandrobrilLinkedin: http://ar.linkedin.com/pub/lisandro-bril/7/709/17ªBlog: lisandrobril.wordpress.com 26
  27. 27. Table of Contents• The Latin American opportunity• Our experience in VC Investing• Going forward ‒ New Fund ‒ Team• Opportunities for MBAs• Annex 27

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