Invest Like the Best with Patrick O’Shaughnessy
Business:Investing
My guests today are Julio Vasconcellos and Mate Pencz, who are partners at Canary and Atlantico, leading early-stage investment firms in Latin America. They’re also both successful entrepreneurs. Mate is the co-founder and CEO of Brazilian real estate unicorn, Loft. Julio was Facebook’s first country lead for Brazil, an entrepreneur in residence at Benchmark, and the former founder of Peixe Urbano which sold to Baidu. This conversation was a great opportunity to dive into the state of investing and business in Latin America today, what it looks like on the ground, and cover the most interesting findings from Atlantico's annual report on Digital Transformation in the region. Please enjoy my conversation with Julio and Mate.
For the full show notes, transcript, and links to mentioned content, check out the episode page here.
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Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.
Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.
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Show Notes
[00:02:39] - [First question] - A broad perspective on what is interesting in Latin American investing today - Latin America Digital Report 2022
[00:05:15] - What makes up the existing 1.5% tech penetration index in Lat Am
[00:06:11] - Florian Hagenbuch, Mate Pencz - Everything Will be Bought Online (Loft); David Velez - Building the Branchless Network (Nubank); How important it is to parse by country when it comes to building businesses in LatAm
[00:08:31] - Overview of LatAm as a microcosm of fintech innovation happening really fast and what is most exciting in that sphere
[00:12:28] - Why the adoption of PIX was so successful and how it maps onto the banking system
[00:14:27] - What PIX’s widespread adoption will enable for the coming wave of entrepreneurs
[00:18:30] - Demographics, GDP, growth rates, and inequality in LatAm
[00:22:30] - Shifting to remote work and how it’ll affect LatAm workers and talent
[00:25:25] - Macro tailwinds that matter when it comes to returns in these markes
[00:30:06] - What it feels like for an entrepreneur today compared to when Loft launched
[00:32:36] - Deeper themes and what needs to be unlocked for LatAm’s tech sector to look more like the US or China with big tech giants
[00:37:04] - The opportunity set in developing a software that serves small and medium businesses in LatAm
[00:40:12] - Sources of available funding for venture and private equity
[00:42:54] - What valuations look like and whether or not there’s an entry multiple discount
[00:45:12] - Seeking evidence that crypto is used in more valuable ways in emerging markets
[00:48:00] - Areas where LatAm is operating in a future state more so than elsewhere
[00:50:28] - What the right amount of global firm participation in capital partnerships looks like
[00:52:38] - Big standout lessons from their operating days
[00:55:53] - What is most exciting and concerning about their investing style and investing writ large in LatAm
[00:58:51] - The kindest thing anyone has ever done for Julio
Dev Ittycheria - The Database Evolution - [Invest Like the Best, EP.373]
Nico Wittenborn - Finding the Adjacent Possible - [Invest Like the Best, EP.372]
Mitch Rales: The Art of Compounding - [Art of Investing, Forever Episode]
Marc Lasry - Making Bucks in Credit and Sports - [Invest Like the Best, EP.371]
Bill Gurley & Michael Mauboussin - Putting Theory into Practice - [Invest Like the Best, EP.370]
Tim Ferriss - Curating Curiosities - [Invest Like the Best, EP.369]
Ken Langone - The American Dream - [Invest Like the Best, EP.368]
Robin Dunbar - Optimizing Human Connection (Dunbar's Number) - [Invest Like the Best, EP.367]
Sean Feeney - Reinventing the Restaurant Business - [Invest Like the Best, EP.366]
Dave Fontenot - The Monastery of Code - [Invest Like the Best, EP.365]
Anne-Marie Peterson - The Capital System - [Invest Like the Best, EP.364]
Aravind Srinivas - Building An Answer Engine - [Invest Like the Best, EP.363]
Ali Hamed - Building an Investment Firm - [Invest Like the Best, EP.362]
Cyan Banister - Investing for a Higher Purpose - [Invest Like the Best, EP.361]
Danny Meyer - The Power of Hospitality - [Invest Like the Best, REPLAY]
Chuck Akre - The Three Legged Stool - [Invest Like the Best, REPLAY]
Alex Telford - Unlocking Innovation in Pharma - [Invest Like the Best, EP.360]
Madhavan Ramanujam - How to Price Products - [Invest Like the Best, REPLAY]
Daryl Morey - Systems Thinking in Sports - [Invest Like the Best, REPLAY]
Michael Ovitz - Knowledge Is Power - [Invest Like the Best, EP.359]
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