{"id":13679,"date":"2018-03-29T14:17:52","date_gmt":"2018-03-29T21:17:52","guid":{"rendered":"http:\/\/fnmarketing.wpengine.com\/?p=13679"},"modified":"2018-09-13T15:46:03","modified_gmt":"2018-09-13T22:46:03","slug":"building-a-startup-in-latam-advice-from-4-time-serial-entrepreneur-pedro-neira-ferrand","status":"publish","type":"post","link":"https:\/\/foundersnetwork.com\/building-a-startup-in-latam-advice-from-4-time-serial-entrepreneur-pedro-neira-ferrand\/","title":{"rendered":"Building a Startup in LatAm: Advice from 4-time Serial Entrepreneur Pedro Neira Ferrand"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">With tech giants like Google making a <\/span><a href=\"http:\/\/www.zdnet.com\/article\/googles-masterplan-to-foster-latam-tech-startups-in-2018\/\"><span style=\"font-weight: 400;\">push to foster LatAm startups in 2018<\/span><\/a><span style=\"font-weight: 400;\">, and a number of <\/span><a href=\"https:\/\/www.bnamericas.com\/en\/news\/ict\/hold-who-are-latin-americas-unicorns\"><span style=\"font-weight: 400;\">unicorns emerging<\/span><\/a><span style=\"font-weight: 400;\"> in the region over the last 4 years, Latin America is fast becoming a contender in the global startup arena. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lima-based Founders Network member and 4-time serial entrepreneur <a href=\"https:\/\/www.linkedin.com\/in\/pedroneira\">Pedro Neira Ferrand<\/a> has been at the forefront of this shift. <\/span><b>Having grown 3 of his 4 startups in LatAm, Pedro has witnessed the changes to the local startup ecosystem with pleasure<\/b><span style=\"font-weight: 400;\">. \u201c<\/span><span style=\"font-weight: 400;\">4 years ago, there was no startup community in Peru, as for the rest of LatAm, the community was very early stage. Now, local communities have grown amazingly.\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">After founding 2 startups\u2014 one immediately before, the second immediately after <\/span><a href=\"https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble\"><span style=\"font-weight: 400;\">the dot-com bubble<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><b>Pedro sold his 3rd startup (<\/b><a href=\"http:\/\/www.adondevivir.com\/\"><b>adondevivir<\/b><\/a><b>) to <\/b><a href=\"https:\/\/www.crunchbase.com\/organization\/tiger-global\"><b>Tiger Global Management<\/b><\/a><span style=\"font-weight: 400;\">, a firm out of NYC with investments in Spotify, Nextdoor, Chargebee, &amp; InVision.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After the acquisition, Pedro stuck with Adondevivir for 2 more years before moving on. \u201c<\/span><span style=\"font-weight: 400;\">The company had started to make a lot of money, but I got really bored. It became more revenue driven instead of tech driven. We weren\u2019t creating anything anymore. <\/span><b>That\u2019s when I discovered I was a serial entrepreneur<\/b><span style=\"font-weight: 400;\">. I build things and once they work, I leave.<\/span><span style=\"font-weight: 400;\">\u201d<\/span><\/p>\n<p><b>Now Pedro has secured his 4th round of funding<\/b><span style=\"font-weight: 400;\"> for his current venture, <\/span><a href=\"https:\/\/rzk4m.app.goo.gl\/ZgK1\"><span style=\"font-weight: 400;\">Mi Me<\/span><span style=\"font-weight: 400;\">dia Manzana<\/span><\/a><span style=\"font-weight: 400;\">, the #1 most downloaded app in the dating category in LatAm, with over 1M downloads. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">With 4 startups under his belt, Pedro is now dedicated to educating budding entrepreneurs in LatAm through his involvement in organizations like Founders Network, BlackBox Connect and Endeavor. \u00a0\u201cI try to take care of my network very carefully, it\u2019s very important to me.\u201d <\/span><\/p>\n<h3><b>Below, Pedro&#8217;s advice for LatAm founders on:<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Starting-up in LatAm vs. in the United States<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Why it\u2019s important to not aim small when raising in the United States<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Why LatAm founders need to raise funds locally before raising globally<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How a visit to Silicon Valley is critical <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The importance of picking the right co-founder<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Why investing in your local and global network will pay dividends over the course of your career<\/span><\/li>\n<\/ul>\n<h3><b>Starting Up in LatAm vs. United States<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Costs in LatAm are obviously much lower than The Valley.<\/span> <span style=\"font-weight: 400;\">So if you need a small team of 5-10 technical employees, you can pay them about \u2153 of what you would in the United States. So if you\u2019re starting a company in LatAm, hire locally. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, we have no funding available in LatAm. Especially in countries like Peru and Ecuador. Venture Capital is more prevalent in Mexico and Argentina. It\u2019s also dependent on state-run programs. For example in Mexico, the state has funds available for startups, but you have to be a Mexican citizen to qualify. <\/span><\/p>\n<h3><b>Don\u2019t Aim Small When Raising in the United States<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you\u2019re raising in LatAm and think too big, you won\u2019t get funding. If you\u2019re raising in the United States and think too small, you won\u2019t get funding.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors in LatAm are very, very, risk averse. So you have to approach investors with a clear, low risk business model. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if you take that same low risk pitch to an investor in the United States, you won\u2019t get past 30 seconds in that meeting before they turn you away. Because nobody in the United States wants to fund a startup that is risk averse and aiming too small. Investors in the United States want your TAM to be massive\u2014 they want you to think big.<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">If you\u2019re raising in the United States and think too small, you won\u2019t get funding.\u00a0<a class=\"ProfileHeaderCard-screennameLink u-linkComplex js-nav\" href=\"https:\/\/twitter.com\/pedroneiraf\"><span class=\"username u-dir\" dir=\"ltr\">@<b class=\"u-linkComplex-target\">pedroneiraf<\/b><\/span>\u00a0<\/a>\u00a0<\/span><\/p>\n<\/blockquote>\n<h3><b>Raise Locally First, Globally Second<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you haven\u2019t raised a single dollar in your country, it\u2019s tough to raise abroad. So start local. The good thing is that there is a ton of money in Latin America. We have lots of people here with an extra $50-$100K who are not traditional angels, but they <\/span><span style=\"font-weight: 400;\">can invest in startups if the founder is able to explain the kind of investment that a startup is\u2014 high risk, high reward.<\/span><span style=\"font-weight: 400;\"> That\u2019s where the low hanging fruit is in LatAm. You can get away with about 1 to 4 of those checks, and get a small round started. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once those initial funds are secured, that\u2019s when you approach investors in the United States. And once you hit Series A, you can raise from anywhere in the world. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s important to note that at the end of the day, if you are fundable, you\u2019ll get funding. I\u2019ve received investments from seed funds in both New York City and South Korea. Both of those funds had never invested in a LatAm startup before me. If you have a good enough team and go for a big enough opportunity, investors want to fund you, regardless of if the fund is from Nigeria or San Francisco. \u00a0<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">At the end of the day, if you are fundable, you\u2019ll get funding.\u00a0<a class=\"ProfileHeaderCard-screennameLink u-linkComplex js-nav\" href=\"https:\/\/twitter.com\/pedroneiraf\"><span class=\"username u-dir\" dir=\"ltr\">@<b class=\"u-linkComplex-target\">pedroneiraf<\/b><\/span>\u00a0<\/a><\/span><\/p>\n<\/blockquote>\n<h3><b>Visit Silicon Valley <\/b><\/h3>\n<p><span style=\"font-weight: 400;\">I\u2019ve been to Silicon Valley 3 to 4 times since 2013. The first time, I went for the BlackBox Acceleration Program. And it was mind blowing. I came back from that trip with a completely different mindset\u2014 it was critical for me. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I can\u2019t stress enough how making the trip to Silicon Valley is so important for any LatAm entrepreneur. Because in LatAm, \u00a0we don&#8217;t think big enough. Visiting The Valley changes your perspective as a founder, and gets you thinking bigger. Even if you don\u2019t move there, it\u2019s going to expand your mindset. That\u2019s why I continuously go back, to open-up my perspective and make sure I\u2019m at the forefront of technology and entrepreneurship. <\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">I can\u2019t stress enough how making the trip to Silicon Valley is so important for any LatAm entrepreneur.\u00a0<a class=\"ProfileHeaderCard-screennameLink u-linkComplex js-nav\" href=\"https:\/\/twitter.com\/pedroneiraf\"><span class=\"username u-dir\" dir=\"ltr\">@<b class=\"u-linkComplex-target\">pedroneiraf<\/b><\/span>\u00a0<\/a><\/span><\/p>\n<\/blockquote>\n<h3><b>Finding the Right Co-founder(s) Is Critical<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In all 4 of my startups, I\u2019ve been lucky to choose my co-founders well. The main reason is now I know that starting up is a rollercoaster. You\u2019re going to have so many ups and downs. And you\u2019re choosing who you want to have those ups and downs with. It\u2019s like a marriage. You\u2019re deciding that \u2018this is the person I want to live this experience with\u2019. Of course they need to have the necessary skills, but you\u2019re choosing who you want to spend your time with, your passion with. If that relationship doesn\u2019t work, everything else will fall apart. <\/span><\/p>\n<h3><b>Invest Time In Your Local \u00a0and Global Network<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">My network is the single most important thing I have as an entrepreneur. For example, I would not have the amazing co-founders I do without the strong network I\u2019m a part of. You don\u2019t start a company then just spontaneously pick a co-founder. You need to have experience working with that person <\/span><i><span style=\"font-weight: 400;\">before <\/span><\/i><span style=\"font-weight: 400;\">building a startup with them. It\u2019s like a marriage\u2014 you\u2019re not going to marry someone before dating them. You need that strong network to choose your co-founder from. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">A strong network can also help with your raise. In the past and still today, I intentionally set aside time to help my fellow entrepreneurs. So when it was time to raise funding, those same founders that I helped in the past were eager to help me with introductions to investors. And that\u2019s happened for me again and again and again. I try to take care of my network very carefully, it\u2019s very important to me.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">4 \u00a0years ago, there was no startup community Peru, and very very early stages in the rest of LatAm. Now, local communities have grown amazingly. Argentina and Mexico have the most developed ecosystems. But it\u2019s starting to happen all over LatAm, and that\u2019s amazing. Latin American entrepreneurs need to make sure to tap into their local and global startup networks, because those relationships pay dividends in the future.<\/span><\/p>\n<blockquote>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">My network is the single most important thing I have as an entrepreneur.\u00a0<a class=\"ProfileHeaderCard-screennameLink u-linkComplex js-nav\" href=\"https:\/\/twitter.com\/pedroneiraf\"><span class=\"username u-dir\" dir=\"ltr\">@<b class=\"u-linkComplex-target\">pedroneiraf<\/b><\/span>\u00a0<\/a><\/span><\/p>\n<\/blockquote>\n<p><strong>Founders Network is expanding to Latin America. If you are a full time tech founders who is interested in joining our global network of 600+ full time tech founders, please <a href=\"https:\/\/foundersnetwork.com\/request\/\">request an invitation here<\/a>.\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With tech giants like Google making a push to foster LatAm startups in 2018, and a number of unicorns emerging in the region over the last 4 years, Latin America &#8230; <\/p>\n<div><a href=\"https:\/\/foundersnetwork.com\/building-a-startup-in-latam-advice-from-4-time-serial-entrepreneur-pedro-neira-ferrand\/\" class=\"more-link\">Read More<\/a><\/div>\n","protected":false},"author":31,"featured_media":13681,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[144],"tags":[7351,90],"table_tags":[],"class_list":["post-13679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tech-startup-advice","tag-bogota","tag-tech-founders"],"acf":[],"featured_image_data":{"src":"https:\/\/foundersnetwork.com\/wp-content\/uploads\/2018\/03\/1636152.jpg","alt":"1636152","caption":""},"_links":{"self":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/posts\/13679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/comments?post=13679"}],"version-history":[{"count":0,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/posts\/13679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/media\/13681"}],"wp:attachment":[{"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/media?parent=13679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/categories?post=13679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/tags?post=13679"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/foundersnetwork.com\/wp-json\/wp\/v2\/table_tags?post=13679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}