Presentation given at South by Southwest (SXSW) 2017 in the Startup Village track. Presenting the history of the Brazilian startup ecosystem and the opportunities of investing in Latin America.

1. Startups in Brazil (and Latin America)
Bruno Peroni

2. PART 1:
Who am I?

3. Semente Negócios
Co-founded 6 years ago, lean startup pioneer
+7K impacted entrepreneurs
326 startups trained in 2016

4. WOW Accelerator
www.wow.ac

5. WOW Accelerator
One of the first and most active in Brazil
32 companies in portfolio
98 angel investors in the network

6. PART 2:
What is Brazil?

7. #7 largest economy (PPP)
#74 in GDP per capita (PPP)

8. #7 largest economy (PPP)
#74 in GDP per capita (PPP)
3.8 hours/day on social media

9. Political crisis and corruption scandal
Coming out of a deep recession
(stock market hit its all-time record in February)

10. Political crisis and corruption scandal
Coming out of a deep recession
(stock market hit its all-time record in February)
Huge consumer market:
A group of 3 entrepreners own Burger King, Kraft Foods
and a part of Bud

11. But what about
startups?

12. Phase 1: the bubble
(1995-2005)
The foundation

13. Internet provider
Acquired by
Telefonica
(Undisclosed)

14. Internet provider
Acquired by
Telefonica
(Undisclosed)
Price comparison
Acquired by
Naspers
(US$100MM)

15. Internet provider
Acquired by
Telefonica
(Undisclosed)
Price comparison
Acquired by
Naspers
(US$100MM)
Mobile solutions
Controled by
Naspers:
+US$150MM
investment

16. Phase 2: the dawn
(2005-2015)

17. Phase 2: the dawn
(2005-2015)
Network effects of
success stories
Government
support

18. Training and capacity building: SEBRAE
US$1B of funding to foster small companies

19. Training and capacity building: SEBRAE
US$1B of funding to foster small companies
Accelerator subsidies:
Startup Brazil program co-invested with
accelerators.

20. Training and capacity building: SEBRAE
US$1B of funding to foster small companies
Accelerator subsidies:
Startup Brazil program co-invested with
accelerators.
Venture Capital subsidies:
state-owned corporate pension funds and govt
agencies are the largest LPs.

21. Phase 2: the dawn
(2005-2015)
Network effects of
success stories
Government
support

22. 5 influencer forces of
success stories
Inspiration
Mentorship
Investment
Serial entrepreneurship
Spinouts
Source: NYC Tech Report (Endeavor, 2014)

24. Who then funded
+20 companies
Serial
entrepreneurship

25. Who then funded
+20 companies
Serial
entrepreneurship
Investment

27. Who then funded
more 30+ companies
Serial
entrepreneurship

28. Who then funded
more 30+ companies
Serial
entrepreneurship
Investment

29. All of these companies raised more than US$15MM

30. Phase 3: maturity
(2015-?)
Mature
VC (Venture Capital)
industry
Density
Risks

33. Four major cities:
São Paulo, Florianópolis, Belo Horizonte and Rio

34. Phase 3: maturity
(2015-?)
Mature
VC (Venture Capital)
industry
Density
Risks

35. US$360MM invested by VCs in 2015
but still largest in Latam*
Small but growing:
Source: ABVCAP/KPMG (2016)

36. US$360MM invested by VCs in 2015
but still largest in Latam*
Few exit opportunities:
early M&As are the norm
Small but growing:

37. Source: LAVCA Latin America Venture Capital (2016)

38. Phase 3: maturity
(2015-?)
Mature
VC (Venture Capital)
industry
Density
Risks

39. The crisis can always get worse before it
gets better

40. The crisis can always get worse before it
gets better
Huge bureaucracy:
#123 in Doing Business ranking

41. PART 3:
Opportunities
in Brazil
and Latam

42. PART 3:
Opportunities
in Brazil
and Latam

43. Brazil is an island in Latam
Closed economy

44. Brazil is an island in Latam
Closed economy
Buy now, buy cheap
88% of international investors intend to allocate more
funds into Brazil and recovering economy

45. Brazil is an island in Latam
Closed economy
Buy now, buy cheap
88% of international investors intend to allocate more
funds into Brazil and recovering economy
Focus on verticals where it’s already relevant
Agribusiness
Fintech
Education

46. Brazil is an island in Latam
Closed economy
Buy now, buy cheap
88% of international investors intend to allocate more
funds into Brazil and recovering economy
Focus on verticals where it’s already relevant
Agribusiness
Fintech
Education
Bridge the gaps in venture capital
Seed and growth funds missing

47. PART 3:
Opportunities
in Brazil
and Latam

48. https://www.dropbox.com/s/ov4eosjp8284hm
i/Screenshot%202017-03-
10%2001.05.29.png?dl=0
Source: OECD: Start-up Latin America (2016)

49. Source: Crunchbase Global Investment Report (2016)
2011-15 Latam Venture Investments

50. Mature
2011-15 Latam Venture Investments
Source: Crunchbase Global Investment Report (2016)

51. Top 5 Latam ecosystems
Argentina: strong business tradition, driven by
MercadoLibre, also in a recovering moment.

52. Argentina: strong business tradition, driven by
MercadoLibre, also in a recovering moment.
Brazil: recovering economy, strongest ecosystem and VC
industry.
Top 5 Latam ecosystems

53. Argentina: strong business tradition, driven by
MercadoLibre, also in a recovering moment.
Brazil: recovering economy, strongest ecosystem and VC
industry.
Chile: international positioning (Startup Chile), open and
easy to do business.
Top 5 Latam ecosystems

54. Argentina: strong business tradition, driven by
MercadoLibre, also in a recovering moment.
Brazil: recovering economy, strongest ecosystem and VC
industry.
Chile: international positioning (Startup Chile), open and
easy to do business.
Colombia: thorough government support, in a good
moment, lack of VC activity.
Top 5 Latam ecosystems

55. Argentina: strong business tradition, driven by
MercadoLibre, also in a recovering moment.
Brazil: recovering economy, strongest ecosystem and VC
industry.
Chile: international positioning (Startup Chile), open and
easy to do business.
Colombia: thorough government support, in a good
moment, lack of VC activity.
Mexico: strong ecosystem and culture, connection to the
United States.
Top 5 Latam ecosystems

56. Thanks!
bruno@sementenegocios.com.br