NOVEMBER 2013

www.nazcaventures.com

FINANCING IN LAT AM

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INTEREST

BANK LOAN CREDIT CARD DEBT CONVERTIBLE NOTE (PRE

CONVERTION) SOME FFF LOANS

CONVERTIBLE NOTE (POST CONVERTION)

SOME PREFFERED EQUITY

NO INTEREST

SOME FFF LOANS GRANTS PRIZES SAVINGS

SOME NON PREFERED EQUITY SOME STRATEGIC ALIANCES SOME EOM (PROVIDERS)

PARTNERSHIPS

NO EQUITY EQUITY

CURRENT FUNDING STAGES IN LATAM

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SEED INVESTMENT

EARLY STAGE INVESTMENT

VC INVESTMENT (SERIES A)

ROUND SIZE IN LATAM

$10K to $150K

$150K to $750K

$750 to $3MM+

TARGET COMPANIES 8K 4K 1K

DEALS/ YEAR 3K 300 60

FUNDING SOURCES Country specific: government, angels,

accelerators

Country specific funds

Many country specific funds, new

regional funds

INTERNATIONAL FUNDING

Few Few Much

EVOLUTION Numerous accelerators

Many country specific fund in the

making

Many regional funds in the making

LIMITED OPTIONS

LOCAL ANGEL INVESTMENT

FEW FUNDS

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Buenos Aires Emprende and similar,

Fonsoft and similar

Pre product/ market fit to established companies

Up to USD 10k to 100k, grant or loan

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Funding: Wayra, NXTP, Incutex, Njambre

Mentoring: ITBAF, DoingLabs

Future: Startup Buenos Aires

Pre product/ market fit

USD 25K to USD 50K

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Club de Angeles del IAE, Club de Angeles de Inversor Global, MELI fund

Pre product/ market fit

USD 25k to USD 100k for equity

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Nazca Ventures, NXTP Labs (Follow on), Alaya Ventures, Enzyme Ventures, Primary Ventures, FIT

Post revenue

USD 100k to USD 300k for equity

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Kazsek Ventures, Navent, FIT

Internationalization

USD 750k or more

GOVERNMENT SUPPORT

MANY FUNDS

MUCH COMPETITION

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Startup Brazil, 8 accelerators, 5 to 10% equity

Mina Gerais SEED Program

Pre product/ market fit

Up to USD 10k to 40k

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Funding: Wayra, 21212, Pipa, Papaya Ventures, TreeLabs,

25+ programs

Pre product/ market fit

USD 25K to USD 50K

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Confrapar, 21212, Initial Capital

Post revenue

USD 100k to USD 300k for equity

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Monashees Ventures, E Redpoint Ventures, Intel Capital, Accel Partners, Kazsek and 30 Ventures Capital Funds more

Internationalization

USD 750k or more

GOVERMENT SUPPORT

FEW FUNDS

INCOMPLETE ECOSYSTEM

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Start Up Nation, RutaN

Pre product/ market fit

Up to USD 100k, grant

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8 accelerators including Wayra, Apps Co, Atom House and others

Pre product/ market fit

USD 25K to USD 50K

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Nazca Ventures, Vellum Capital

Post revenue

USD 100k to USD 300k for equity

FEW FUNDS

INCOMPLETE ECOSYSTM

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Wayra, Naranja Labs, Mexican VC

Pre product/ market fit

USD 25K to USD 50K

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InvestMex, Angel Venture Mexico, Naranja Labs, Mexican VC

Pre product/ market fit

USD 25k to USD 100k for equity

LIMITED INVOLVEMENT IN LAT AM

ACCELERATORS AND SERIES A/B

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500 startups, Entrepreneurs Round Table, Miami Launch Pad Miami

Pre product/ market fit

USD 25K to USD 50K

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Emergence Capital, Riverwood Capital, Sequoia Capital, Tiger International, Insight Venture Partners, Flybridge Venture Partners among others

Internationalization

USD 750k or more

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La Caixa, Grupo de Angeles de IE, others

Angel investing, Early Stage and VC

25K to +1MM for equity

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Wayra Peru

Pre product/ market fit

Up to USD 50k for equity

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ANII Government Agency

Pre product/ market fit

USD 25K to USD 50K

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Prosperitas Capital Partners

Pre product/ market fit to regionalization

USD 50K to USD 500K

GOVERNMENT SUPPORT

MANY FUNDS

OPEN TO FOREIGNERS

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Easy to land and start selling

Per capita GDP and Purchasing Intend higher in LA

Huge number of big companies/ retailers

Special trade agreements with US, Asia and Andes

Legal and monetary security

Si, hablan español!

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Accelerators, Universities, NGOs, Funds, Companies and Government all work together

All stages represented, from seed to series B

CORFO (Government agency) finances private initiatives

Chilean entrepreneurs have been in SV since 08

Companies are investing in startups

Chile welcomes all!

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Apply online 6 times a year

Pre product- market fit

USD 40K reimbursable grant

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CAPITAL SEMILLA: Through network of more than 10 accelerators such as IncubaUC

Wayra, Movistar Innova

Pre product/ market fit

Up to USD 120k. 5 to 10%

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Chile Global Angels, Mujeres Empresarias, Others

Pre product/ market fit

USD 50to USD 150k for equity

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Nazca Ventures, Fen Ventures, Vesubio Ventures, NXTP (follow ons)

Post revenue

USD 250to USD 750k

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Inversur Ventures, Austral Capital, Aurus Capital, CoPec-Uc, Nazca Ventures (follow on)

Internationalization

USD 750k or more

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Uruguay, Peru.

Some funds, incomplete ecosystem

Gov. support, many funds, much competition

Very limited, local angel investment, no funds

Gov. support, some funds, open to foreigners

Gov support, no previous experience, some funds

Limited involvement in Lat Am. Series A onwards

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All investors and partners are entrepreneurs.

Transform local tech startups into regional/global players.

Companies with a Chilean-based corporation.

Early stage tech startups.

USD 250K to USD 750K, co-investment.

Capital to grow and internationalize.

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Implementation of financial reports and operational KPIs for data driven decision making.

Active involvement of partners and investors as mentors and board members. Help with positioning, execution, others.

Commitment to share our broad network in each industry, towards the development of partnerships and regional /global growth.

Explore synergies within the portfolio to increase sales, optimize resource allocation and increase exit potential.

Local investors will help startups soft land in each country, including access to HR, service providers and office space.

Prepare companies strategically to increase valuation and access top notch investors in their next rounds.

PARTNER Entrepreneurs Relations

VANESA KOLODZIEJ

•  Co-founder of three tech companies, including Bumeran •  Entrepreneur in Residence, Mark Ventures •  Co-founder, Palermo Valley •  BA, Universidad de San Andrés. Entrepreneurship, Babson College

EDUARDO AMADEO

PARTNER Operations

•  Co-founder, Buenos Aires Emprende •  BA, Universidad Di Tella; MBA, Universidad de San Andrés •  SMsB consultant with over 15 years experience

SANTIAGO CANIGGIA BENGOLEA

PARTNER Corporate Affairs

•  Corporate Affairs and Co-founder, Faro Capital, sustainable agricultural fund

•  Founder, Bodega del Plumerillo (Winery) •  Lawyer, Ernst & Young •  ECLA, Entrepreneurship Program at Columbia University NYC •  Angel investor

FELIPE HENRIQUEZ MEYER

PARTNER

Finance

•  Co-founder and CFO, Groupon LatAm (except Brazil) •  Co-founder, Café Orígenes •  Engineer, Universidad Diego Portales. ECLA, Entrepreneurship

Program at Columbia University NYC •  Angel investor

ALAN FARCAS

PARTNER Public and Institutional Affairs

•  Managing Director, Universidad Adolfo Ibañez, Business School •  Managing Director, Endeavor Chile •  Engineer, Universidad de Chile. Masters in Innovation,

Universidad Carlos III. Executive Business Program, IESE /Wharton •  Angel investor

www.nazcaventures.com