FAQ
Understand our investment approach, key criteria, and the types of opportunities we pursue to support high-growth startups and founders.
Strategy and criteria
Focus on tech side of financial services and B2B; however, we shall see opportunities in other correlated sectors.
Founder centric, but strong business models based on technology and with strong Unit Economics are required.
Lead or Co-lead rounds when possible (5-10%) with clean and customary terms and may include debt financing if available.
Focused on serving a specific segment within the broader SaaS and selected sector space. Must have an outsized addressable market.
Has a live product, revenue, and a clear fit in the market. Typically at Series Seed, A, or B, and has raised less than $500k.
Composed of experienced operators with 10+ years in the industry, a clear business model, and a solid monetization strategy.
Pipeline
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.
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Initial investments
First or second money 250k-1mm USD average ticket At least 5-10% Limited to 40-50% of the fund.
Up the winning companies
Minimum expected return of 10x, get the pro-rata check at least Ticket size of 1-3mm USD.
Unique opportunities
Follow rounds on invested companies Follow deal leader were we could not get in earlier.
Frequently asked questions
Explore detailed answers about our investment focus, what we look for in startups and founders, and how we provide support throughout the journey.
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.