High interest rates make bootstrapping diﬃcult
• Brazilian credit cards have insanely high interest rates.
• Business loans require a local friend/family member to assume liability for unpaid
Few Angels have the expertise to mentor a growing startup
• Local term sheets are typically not as “startup friendly” as they are in the USA.
• It’s important to ﬁnd local angels that will understand the unit economics of internet
Series A’s are led by 3 major players
• Monashees, Kaszek and eBricks Digital are usually the best options for a series A.
• They will also participate in Series B rounds that are led by international VC’s.
Stay close to the tech hubs
• Strong communities are forming in Belo Horizonte (San Pedro Valley) and Rio de
Janeiro but São Paulo is still the place to be when fundraising from local investors.
“If you ﬁnd yourself in the ‘seed round crunch,’ get on the night bus to São Paulo and ﬁnd a
couch to sleep on.” @wheretodrew
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