How we invest




Our strategy

We are Value Investors searching for the companies that will deliver strong returns, we are not attracted by vanity metrics or magazine covers. We do not rely solely on unicorns, we search for 10x returns that most can’t see

  • Sector biased

    Focus on tech side of financial services,
    SaaS, Insurance and Real Estate; however,
    we shall see opportunities in any setor,
    vetting them by a sector expert

  • Partner selection

    Partner selection Founder centric, but strong
    business models based on technology and
    with strong Unit Economics are required

  • Lead round & target stake

    We aim to lead rounds (10-15%) with clean
    and customary terms and may include
    debt financing if available

  • Early stage major focus

    Focus on early stage with follow-ons.
    May do later stage deals
    opportunistically (10% of the fund)

Investment Criteria

Potential to reach $1+ billion in valuation or to create monopoly within its category

We look for CLEAR UNIT ECONOMICS with high margins, STRUCTURED PROCESSES with high automation potential, and RECURRING REVENUE backed by strong & organized sales teams 

INDUSTRY FOCUS

Focused on serving a specific segment of people or businesses within the broader SaaS tech and selected sector space Must have an outsized addressable market.
 
 

STAGE

Showing clear signs of product-market-distribution fit, with revenue and a product live in the market.

Series Seed, A or B
May have some previous funding, but generally no raising more than $500k.

TEAM EXPERIENCE

Founding teams comprised of experienced operators with 10+ years of industry experience Experience in running the business with a clear business model & monetization structure.
 

Pipeline

We know how to build a strong pipeline from scratch

Active pipeline

Rich pipeline from business partners and entrepreneurs, the more we invest the more opportunities aligned with our theses. Sector focus help us spot newcomers fast and understand who is well positioned to became our next partner.

Rigorous screening

Developed proprietary analysis and framework to evaluate opportunities and pick up winners. We have been investing over the last 7 years and screened several hundreds of companies each year while deeply evaluated 100+ high potential companies every year.
01
Initial investments
First or second money 250k-1mm USD average ticket At least 5-10% Limited to 40-50% of the fund
02
Follow up the winning companies
Minimum expected return of 10x, get the pro-rata check at least Ticket size of 1-3mm USD
03
Unique opportunities and triple-down
Follow rounds on invested companies Follow deal leader were we could not get in earlier

FAQ

What do you look for before making an investment?

There are three concrete aspects we like to see in a startup:

Dependable and experienced teams: Our main job as investors is to identify a team that will be able to carry the company through its vision. we want to stimulate the best entrepreneurs with innovative and high-potential ideas that will transform and push the real economy forward, not only the ones with a perfect pitch, background, or credentials.

Markets that are liquid and big enough: Venture size return with good liquidity/exit potential is a must. You don’t necessarily need to become a unicorn, but your market should allow a 10x exit with credible exit avenues. Growth is necessary, but not sufficient.

Strong Business models: we decided to find and fund opportunities that are under the radar, not limited to main hubs in Brazil, that may need a recap or help with future funding.

Making capital flow back to the real economy improving and allowing sustainable growth for the whole society is our purpose.

What makes a great founding team?

We don’t look for superheroes, we look for accomplished entrepreneurs.

  1. Market expertise “insider point of view”: Knowledge and passion about the business model, sector, and how to get to their clients.
  2. Complementarity: we need to see the most important pillars covered among the founder’s expertise. We need to see how they will address the gaps.
  3. Resilience not stubbornness: as a founder, you must sell your vision to a different audience. You will see a lot more ‘no’s than ‘yes’s. So being resilient is mandatory but don’t forget to be coachable as well.
What size rounds do you participate in?

We are flexible as a venture firm, and we tend to be flexible to accommodate good opportunities. First and foremost, we see ourselves as investors ready to take on good companies. Our typical check size is 200 thousand dollars, however, we do make exceptions.

Do you only invest in startups operating or planning to operate in Brazil?

Mostly, but not necessarily. We need to understand how we will help the company thrive.

Do you only invest in tech companies?

We are sector and model-agnostic, but we highly prefer tech enable business models that use innovation to help scale faster with more robust KPIs.

Will you schedule a face-to-face meeting with me?

If we understand your business has a good fit with us, then yes. We will need to know more about you to proceed with our analysis, but first, we need to see that your startup meets most of the criteria we’re looking for.

Before I pitch my idea, will you sign my NDA?

Nop. NDAs may make sense down the road when the deal advances or at later stages when certain info may be sensitive.

Also, we learned that most of the time a company needs an NDA right off the bat it is not a good use of an investor's time. (read: adverse selection meets bureaucracy)

BTW: if you think you need an NDA before pitching your idea, we encourage you to read this article and think a little more about it.
Updated on February 14th, 2020.

Do you follow-on on investments?

Most likely not, this fund thesis wasn’t designed for that. However, we plan to do so soon. And we require pro-rata rights so that we can invest in the future with other funds.

What resources do you provide to help founders?

Access to markets, expertise, and corporate connections: we are an entrepreneur network. We know lots of people to sell, hire, or partner with. And we’ve done business with them before.

Fundraising: We access plenty of information about the market, and we will help guide you through the road. We have walked this path ourselves so we will share any insight, framework, or contact to help you out.

Do you help founders with investing structures (Onshore vs Offshore)?

Sure, we’ve done it a ton of times. Just let us know.


Subscribe
to our newsletter


Need help with anything?