Septembro 18, 2024
by Olga Maslikhova | The J Curve
Five Big Ideas with Andre Maciel, founder at Brazilian VC Volpe Capital: the $700B LATAM question for Meta, Google and ByteDance
Brazil’s tech scene is like an onion—each layer you peel back reveals something bigger, bolder, and more exciting. Just when you think you’ve seen it all, another layer of opportunity opens up.
In the U.S. and much of Europe, when we hear about Brazil or Latin America, the headlines are often clouded by negative sentiment—corruption, bureaucracy, crisis, tax complexity… you name it. But peel back the surface, and you’ll find a reality that’s far more optimistic.
In my conversation with Andre Maciel, founder at Brazilian VC firm Volpe Capital, we dove into the juiciest layers of this untapped potential: how SoftBank’s entrance lit a fire under LATAM’s venture capital scene, the art of timing exits (and why 2021 was the one that got away for many VCs), and why Brazil’s tech ecosystem is absolutely punching above its weight class.
From MercadoLibre’s inspiring story of patience and resilience to the distinct, gritty DNA of LATAM founders, there’s a massive opportunity hiding beneath those layers of misconception.
Brazil’s $700 billion tech market is not just a gold mine for Big Tech; it’s a playground for savvy investors and entrepreneurs who are ready to dig deeper. Each layer of Brazil’s onion reveals something fresh—and trust me, it only gets better the deeper you go.
Here are five big ideas from our conversation 👇🏻
1️⃣ SoftBank’s impact on LATAM’s venture capital boom
SoftBank’s entry into Latin America, led by Marcelo Claure, was a turning point for the region’s venture capital ecosystem. Their $8 billion investment didn’t just bring in capital; it attracted major funds like Tiger Global, leading to over $35 billion in total investments. Claure’s aggressive capital allocation sparked ripple effects that helped establish today’s thriving venture capital landscape in LATAM.
2️⃣ The need for proactive exits in LATAM venture capital
Andre emphasizes the importance of proactive exit strategies for LATAM venture capitalists. Timing is critical, and while many VCs aim to maximize returns, they often miss key opportunities. In 2021, for example, valuations peaked, but many VCs didn’t capitalize on the moment. Andre stresses the need to prioritize returning capital to LPs, as it’s essential for building trust and maintaining long-term relationships.
3️⃣ LATAM’s underrated yet overperforming tech scene
Latin America’s tech market is often underrated on the global stage, but its results speak for themselves. Between 2008 and 2017, $4 billion in venture capital helped build companies now valued at $130 billion. Sectors like fintech and e-commerce have consistently outperformed expectations. Brazil, in particular, is a tech powerhouse with high smartphone penetration and over 10 hours of daily online usage. The opportunity for Big Tech in Latin America is massive, with the market valued at around $700 billion. Companies like Google, Meta, Microsoft, and TikTok have made LATAM, led by Brazil, a key growth driver, recognizing the region’s enormous potential.
4️⃣ MercadoLibre: A blueprint for patience, resiliency and strategic growth
MercadoLibre’s story is one of patience and smart strategy. In 2002, the company projected $20 million in revenue and $300 million GMV but only achieved $0.5 million in revenue and $4 million in GMV. Despite this, MercadoLibre’s resilience and disciplined cash management allowed it to grow steadily. When the company went public in 2007, it was valued at $796 million. Today, its valuation exceeds $105 billion, a testament to the power of long-term vision and strategic execution in LATAM.
5️⃣ The distinct DNA of LATAM entrepreneurs
LATAM entrepreneurs often come from traditional industries like banking and consulting, which gives them a unique edge. Unlike their Silicon Valley counterparts, they possess the skills to navigate the region’s complex regulatory and operational environments. Founders at companies like MercadoLibre, Stone, and Globant have leveraged their industry expertise to build businesses that not only dominate locally but also compete globally. This practical experience sets them apart from tech-heavy backgrounds typical in Silicon Valley.
You can watch the full interview with André on Youtube 👀👇🏻
Or watch/ listen on Spotify 🎧
