Julio Vasconcellos & Mate Pencz - Investing in Latin America - [Invest Like the Best, EP.296]

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. ----- This episode is brought to you by Canalyst. Canalyst is the leading destination for public company data and analysis. If you're a professional equity investor and haven't talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalyst.com/Patrick. ----- Today's episode is brought to you by Brex. Brex is the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best. ----- 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. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @patrick_oshag | @JoinColossus 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 [00:22:30] - Shifting to remote work and how it’ll affect LatAm workers and talent [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 [00:40:12] - 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