Access to funding continues to be one of the biggest challenges facing emerging startups in Latin America. With the turbulent macroeconomic outlook of the last two years, venture capital invested in startups in the region has been significantly reduced, but that does not mean that the Latin American entrepreneurship ecosystem does not have opportunities to continue growing.
One of the most active funds in the region is 500 Global, a venture capital firm that since 2012 has been investing in promising Latin American startups from Spanish-speaking countries that are at an early stage.
For the final stage of the year, the fund is looking for three startups ready to receive investment and a personalized mentoring program for a year. Those selected will receive investment and benefit from access to a large community of more than 5,000 founders from 2,600 companies from various regions of the world.
“Our customized mentorship program has an initial duration of one year and marks the beginning of an ongoing, in-depth relationship with the startups in which we invest. This program is designed to provide strategic and practical support that builds the foundation for each company’s success,” René Lomelí, 500 Global Partner, told Contxto.
The 500 Global program in Latin America provides strategic and practical support for the success of each company, focusing on three main pillars. “First, we work with founders to identify key areas of development and establish a detailed roadmap,” explained René. “Second, we offer resources such as mentors, specialized services and community events to enhance the growth of the startups. Finally, we establish a continuous reporting system to measure progress and adjust the strategy according to the startups’ needs,” he concluded.
When asked about the main profile of the startups that have joined the program, the fund explains that the companies that have joined this year stand out for a unique combination of innovation, experience and global ambition, reflecting a profile characterized by four fundamental pillars: focus on efficiency and productivity, technology at the core, global solutions with local roots, and experienced and agile teams.
The three startups that want to join the Global 500 program must be prepared to solve major challenges in any sector through the use of technology and apply directly on the program’s website.
Increased investment and more support time
Precisely at the beginning of 2024 the fund announced its new investment strategy in the region, moving from three programs per year to evaluate and invest in companies throughout the year; a model that also improved the investment offer in the selected companies, going from $80,000 to $300,000 dollars in exchange for 10% participation.
These changes were established with the objective of giving startups joining 500 Global the opportunity to have more time to build good business fundamentals, improve their products or services and be more prepared on a general level to increase the possibility of attracting additional investment in the future.
“Our commitment is to accompany founders not only during the initial program, but throughout their journey, to help them build exceptional startups with a lasting impact,” emphasized René.
Focus on the Latin American ecosystem by 2025
The company already has its plan in place for what will be next year, from which the ecosystem expects a greater recovery of venture capital in the region.
“We want the companies we invest in to not only grow, but to become success stories that inspire the entire region. We have seen significant progress on this front with startups that have raised capital or are expanding internationally, and we continue to build to support those stories,” commented the Partner.
To this end, 500 Global has structured its vision towards 2025 in Latin America in a plan called “4Cs”: capital, code, community and content, which will be the pillars that will work in an interconnected way to amplify the impact on the startup ecosystem in Latin America.
Capital seeks to continue strengthening our role as a venture capital fund, aligning incentives with our investors and the startups in their portfolio. The code includes the development of internal and external technological tools that bring value to founders, investors and the ecosystem. The community seeks to build a vibrant network that connects entrepreneurs, investors and strategic allies. And content will focus on generating relevant and strategic content that educates, inspires and connects ecosystem players.
“Each of these pillars operates under the principle of compound interest: the more we invest time and resources in capital, code, community and content, the more impact we generate in the ecosystem. Our goal for 2025 is clear: to be a catalyst for legendary startups that transform the region and serve as a model for the world,” concluded René.
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