It's a bold move for a venture studio to target microbusinesses.
And yet, we know their empowerment is the answer to creating fundamental change in Latin America. This is why we do it anyway
Microbusinesses are key to solving LATAM's fundamental problems.
Microbusinesses are the fabric of Latin America’s economy:
- 98%of all businesses
- 64%of all jobs
- 30%of GDP
- Local Shop Owners
- Beauty salons
- Smallholder farmers
- Informal waste pickers
- Young informal workers
In a region marked by inequality, unemployment and environmental issues, we can’t ignore the role microbusinesses play in solving them. Yet they’re struggling.
If they get more opportunities, they can improve their livelihoods, the lives of their families, of their community, creating virtuous and inclusive growth.
- IDB, 2020 MSME Financing Instruments in Latin America and the Caribbean During COVID-19 by Diego Herrera
With the right tools, microbusinesses can go from surviving to thriving.
Microbusinesses are highly fragmented. But with the right technology, they can unite and become a powerful force in their value chain. Think networks, franchises, or cooperatives.
Truth is, many microbusinesses also lack access to fundamentals in order to build a thriving business:
- Financial resources
- Market access
- Bargaining Power
- Business Skills
This is why our startups are laser focused on solving microbusinesses needs with technology:
- 1Digitizing their operations
- 2Increasing their buying power
- 3Expanding their market reach, uncovering new revenue opportunities
We continuously build startups addressing the needs of the traditional economy.
40 years.
This is how long our founders have worked alongside microbusinesses. This gives us a unique edge on the market.
And we know how to leverage it:
- 1Together with our entrepreneurs we create innovative business models in under-invested markets where microbusinesses operate.
- 2Using the Venture Studio model, we increase probability of our startups’ success and reduce risk of failure.
- 3We create social impact that is sustainable as our startups aim for scale and are profitable in the long-term.
Innovative financing to catalyze impact ventures growth.
Unlike traditional venture-backed startups, impact ventures require patient growth at start that enables them to find viable business models to meet the needs of those most in need.
Our Impact Venture Studio model uses catalytic capital and blended finance strategies to support the incubation phase with grants, setting our ventures up to be commercially appealing for more traditional debt and equity financing later on.
We make use of financial instruments such as:
- Unrestricted grants
- Convertible grants
- SAFE (equity)
- Patient debt
- Convertible notes (equity)
- Equity