This document discusses early stage investment in Latin America. It provides an overview of Nazca Ventures, an entrepreneur's fund based in Santiago and Buenos Aires that invests in technology startups with regional or global potential. The fund was started in 2013 and has invested in 10 companies, started 7 companies, sold 3 companies, and participated in 1 IPO. It also discusses different types of investors like accelerators, angels, and VCs, as well as the investment process and what VCs look for in potential investments.

1. BRINGING THE ENTREPRENEURIAL SPIRIT
O EARLY STAGE INVESTMENT IN LATIN AMERICA
VANESA KOLODZIEJ | MANAGING PARTNER | @vanesak

2. The Art and
Science of
Fundraising

3. ABOUT NAZCA VENTURES
• Entrepreneurs Fund
• Santiago and Buenos Aires-based
• 5 Partners, All Entrepreneurs
• LPs in Latam and US

4. OUR TRACK RECORD
• Started 7 companies
• Sold 3
• Participated in 1 IPO
• 2 Latam roll-outs
• Have done 10 investment
• Founded/ lead 2 main
entrepreneurial NGOs in Lat am

5. PROFESSIONAL
INVESTORS
• Accelerators
• Angels (Individual or Groups)
• VCs

6. ACCELERATOR
• Fix time, money, %, terms
• Mentoring/ Contacts
• Demo Day

7. ANGELS
• Their own money
• Much time/ contacts/ industry
expertise
• No structure

8. VCs
• Other people money
• Contacts/ Portfolio
• Structure
• Follow on

9. VC
• Asset class with the higher level of
risk
• Limited Partners: write checks but
do no add value
• General Partners: write checks AND
add value: management

10. FUND s 101
• Philosophy
• Partners
• Rounds
• Portfolio
• Investment Time

11. PARTNERS
• Limited partner: add any value?
• General partners: what are their
domain expertise
• Payment: Management fee 2% +
carried interest 20%
• Brackets of returns

12. FUND s RETURNS
• Portfolio approach: 90% will fail
• 30/30/40 investment spread
• Potential for home run
• 1 company would pay the whole
fund

13. MATERIALS
• One line
• Elevator pitch
• Teaser
• Deck
• Financials

14. NO BP

15. DEMO

16. STAGES
• Intro
• Teaser
• Meeting
• NDA/ Financials
• Due Diligence
• Non Shop/ Offering Letter

17. NVESTMENT READINESS
• Legal Entity
• Bank Account
• Shareholder Agreement
• Lawyer
• Accountant
• IP Fillings

18. EQUITY INVESTMENT
• Valuation Previous to Investment
• Purchase of Newly Issued Shares
• Term Sheet, Stockholder Agreement
• Minority Protections
• Board seats

19. CONVERTIBLE DEBT
• No Valuation
• Issue of Time-limited Debt
• Convertible or not in Next Round
• Cap, Interest, Discount, Expiration
Date

20. TS vs CN
• Takes more time
• Valuation
• More expensive
• More protections
• Bigger deals

21. NEGOTIATION POINTS
• Common or preferred
• Seniority
• Interest
• Vesting
• Golden Parachute

22. INVESTORS SOURCES
• Angel.co
• Thefunded.com
• Lavca.com
• Crunchbase.com
• F6S.com

23. WHAT VC s LOOK FOR
• Huge markets
• Competitive advantage
• Business + Sales + Tech
• Recurrent revenues
• Economy of scale
• No capital expenditure

24. OW VALUATIONS ARE DON
• Growth Potential
• Market Size
• Market “Hotness”
• Number of Competitors
• Money the company needs
• How much will needed next
• % owned by previous investors
• % wanted by new investors

25. VC’s IN LATAM

26. ACCELERATORS

27. QUESTIONS?

28. ABOUT NAZCA VENTURES
• Entrepreneurs’ Fund
• Santiago and Buenos Aires-based 5
• Partners, All Entrepreneurs
• LPs in Latam and US
• Starting Early 2013

29. OUR TRACK RECORD
• Started 7 companies
• Sold 3
• Participated in 1 IPO
• 2 Latam roll-outs
• Have done 10 investment
• Founded/ lead 2 main
entrepreneurial NGOs in Lat am

30. HOW WE INVEST
• Technology (B2B mostly)
• No copycats
• Regional/ Global Potential
• $250-$750k Co-investment

31. WORK WITH THE BEST
LATAM ENTREPRENEURS
WHILE CREATING VALUE
FOR INVESTORS,
ENTREPRENEURS AND
SOCIETY

32. BRINGING THE ENTREPRENEURIAL SPIRIT
O EARLY STAGE INVESTMENT IN LATIN AMERICA