St Petersburg, Florida, March 8, 2023. Without a doubt, crises are part of everyday life, and for entrepreneurs, it's even more challenging. Many studies in the Latin American region show that the lack of capital is one of the major weaknesses, making it difficult for entrepreneurs to develop impactful startups.
It is a reality that since the beginning of the geopolitical conflict between Russia and Ukraine, combined with the macroeconomic aftermath generated by the pandemic, 2023 has been full of headlines that generally convey a sense of pessimism and concern.
According to the Ministry of Information Technology and Communications of Colombia, the use of digital tools increased by 35% after the pandemic. There was also a 20% increase in the number of people making online purchases, and overall, the volume of users connected to the internet has increased.
Although all these changes represent an opportunity for startups and entrepreneurs, the macro context has slowed down investment in startups, creating a double challenge for entrepreneurs in the current context: the first, to move forward with ideas that are already challenging in and of themselves, and the second, to do it with increasingly limited resources due to the effects of inflation.
Derived from all of the above and to support entrepreneurs in Latin America, Cuantico VC has organized the conference "How to raise capital in times of recession? Recommendations and best practices for LATAM startups."
The panelists will include Camila Lecaros, Managing Director of MassChallenge Mexico, an accelerator founded in 2009 in Boston and with a global network supporting entrepreneurs in the United States, Israel, Switzerland, and Mexico. Claudio Barahona Jacobs, Civil Engineer from the University of Chile, former Director of the Chilean Venture Capital Association, and currently Managing Partner of Alaya Capital, a venture capital firm specialized in investment for startups in emerging stages throughout Latin America, will also participate.
According to Jose Kont, General Partner of Cuantico VC, "everyone talks about how the most resilient entrepreneurs build the best startups in times of crisis. However, few people are explaining how they achieve this, what they do differently, what changes they consider, and what they pay attention to. We decided to convene experts who know LATAM like the back of their hand and understand the cultural and social context that entrepreneurs in the region face to share best practices on how to obtain financing for a startup and have the necessary capital to move the company forward".
According to Semana.com newspaper, in 2022, nearly 300,000 companies were created in Colombia, and more than 80% of these will not exceed two years.
"One of the reasons why companies fail is the lack of preparation and ignorance of the financial and tax system, accompanied by the lack of discipline and resources of entrepreneurs. However, accompanying them in this process is essential to contribute to the strengthening of the national economy", explained David Rodriguez, CEO of MDALatam and SkyLat.
This is why it is essential to train, guide and support entrepreneurs to increase their chances of success in obtaining financing and generating a positive impact in their communities through technology, employment, and the development of opportunities.
• Title: How to raise capital in times of recession? Recommendations and best practices for Latin American startups
• Date: Thursday, March 23, 11:00 AM (GMT-6)
• Registration link: https://lu.ma/vctalk01
• Speakers: Camila Lecaros, Claudio Barahona, Jose Kont
The COVID-19 pandemic and more recently, the global macroeconomic crisis, have shown that entrepreneurs are forced to reinvent themselves to face these situations and move their startups and business ideas forward.