Investment: Growth of Venture Builders in Latin America
Investment in Latin America is increasing as the region becomes more and more attractive. Economic prosperity, political stability, inventive individuals, and innovative industries all contribute to rising levels of foreign direct investment. Harnessing these investments, inventions, and innovations are venture builders in Latin America. Growing in popularity amongst the region, venture builders are popping up everywhere. The business model is relatively new to Latin America, but still proving to be practical and profitable.
While they have been very successful, venture builders in Latin America receive fairly little attention. Instead, objectively obvious innovations and inventions tend to capture the attention of most professionals. However, the investment and growth of venture builders in Latin America is not something to ignore. With the right insight, information, assistance, and plan, starting one in the region could be your next lucrative business move. Furthermore and an interesting twist is seeing these venture builders moving into the house rental space, most notably in Cartagena, Colombia.
Below is a comprehensive overview of the business model, its practicality, its success, and its presence in Latin America.
What do venture builders in Latin America look like?
Venture builders in Latin America are popping up more nowadays. Before diving into the industry as a whole, we tackle what exactly is a venture builder. To start, no matter the region in which you conduct business, venture builders will pretty much look the same across the board. All are accompanied by the same business model for achieving and scaling success. They all consistent of a head parent company. This parent company serves at the venture builder itself. From here, the parent company accumulates funds, resources, and human capital. Having an abundance of all these will be essential for successfully operating the business.
With a parent company formed, registered, and fully stocked with necessary resources, the business can get to work. Venture builders brainstorm ideas for profitable new companies and businesses. From there, they take their best idea(s) and start to bring it to life. Using the resources, human capital, and funds previously acquired by the parent company, the new business launches its operations. Although operating under its own name, the venture remains under the management and control of the parent company. From there, the parent company will continue to start new businesses, scale them, and use its own in-house resources to run them. One of the forerunning ideas behind venture builders is that a synergy forms within the business model. Sister ventures feed of the ideas, human resources, practices, and revenue generated from each other under the parent company’s direction. This optimizes work, encourages creativity, and generates impressive volumes in revenue.
Why venture builders in Latin America?
As they become more popular around the world, why should you pursue venture builders in Latin America? There are a handful of reasons why this business model and this region make such a cohesive team.
Firstly, pursuing venture builders in Latin America is effective from a time management and efficiency point of view. While the region is lightening up some of their rules, regulations, and processes, it still has rather bureaucratic practices. Especially when it comes to forming and launching new business, many countries in Latin America have fairly arduous processes. Fortunately for venture builders in Latin America, company formation of its subsequent ventures is much easier. Because these parent companies are operating multiple businesses at once, they are well versed in how to go about starting a new one. Moreover, they may have access to streamlined processes and industry insight to help make it a more efficient formation.
Moreover, venture builders in Latin America fortify the notion that the region will continue experiencing economic growth and prosperity. Venture builders are built upon the idea that there is always a need for innovative ideas and businesses. They both feed off of, and fuel, increasing foreign direct investment and economic growth. The more businesses venture builders start, the more productive they are and the more likely they are to achieve synergy. This give-and-take relationship between venture builders in Latin America and the region as a whole creates long-term value for both parties.
Additionally, this business model offers investors a kind of safety net built into the investment. When investing in a venture builder, you are investing in the successful operations of many different companies at once. Essentially, it’s like dividing your eggs into multiple baskets, as opposed to keeping them in just one. The synergy and efficient use of in-house resources disperses the risk for investors and ensures each venture is operating in the black. Ultimately, this prompts investors to see venture builders in Latin America as lucrative, stable, and exponentially growing business investments.
Prominent venture builders in Latin America
While venture builders in Latin America is a steadily growing industry, there are already a handful that have made a big impact. The following are just a few of the most successful and promising venture builders in Latin America.
Quasar Ventures
Quasar Ventures is another example of successful venture builders in Latin America. The company was founded in 2012 in Buenos Aires, Argentina. Now, they operate throughout South America, including countries like Colombia, Chile, Peru, and Brazil. Overall, they currently have eight different investment operations and have generated nearly $5.5 million in funding. At the time of launch and funding acquisition, Quasar was partnering with Emergence Capital Partners, a group of prominent investors operating from the Silicon Valley. The company’s investments focus primarily on the technology industry, particularly the internet and software sectors.
The StartupVC
The StartupVC is one of the most successful venture builders in Latin America right now. Headquartered in Bogotá, Colombia, The StartupVC operates under the leadership, expertise, and guidance of Craig Dempsey. Dempsey cultivated a six-step process for successfully building ventures, which he then implemented into The StartupVC’s business model.
When forming and building new companies, the team first recruits the best talent they can find to help take on the new business endeavor. With a bigger team in place, they then develop robust business plans for the new company. Dempsey and the company’s advisory board select the most promising ideas for further development. After due diligence is done in development, the team founds, builds, and then expands the new venture. Using these six steps, The StartupVC has been able to successfully identify opportunities, and then plan, implement, scale successful business models. Already, the company has an impressive portfolio of successful ventures, including companies like Biz Latin Hub, Biz Online Marketing, Green Gem Investments, and Green Grow Investments.
Contrutech Ventures
Finally, Construtech Ventures is another one of the most successful venture builders in Latin America. Construtech Ventures is a Brazilian based firm operating out of São Paulo. The company has a very unique, differentiated niche, which it uses to its advantage within the venture builder sector in Latin America. They proudly advertise themselves as the “world’s first Venture Builder focused in the construction and real estate sectors.” Their first successful venture was with InfraSpeak, a cloud services system used for infrastructure management. Now, the technology is used by over forty-thousand teams worldwide. Moreover, since InfraSpeak, Construtech Ventures has added nine other key clients to their portfolio.
The growth of venture builders in Latin America is expected to continue on well into the future. Using a unique and efficient business model, these companies can run many operations within a handful of industries at relatively low costs. The key is to continue scaling the venture builder’s efforts and resources so as to maximize operations, profits, and success. Latin America offers these businesses an attractive and unique market. Given the positive economic state of the region, both parties can feed off of each other. Venture builders thrive off of increased spending, investing, and innovation; all of which are common trends in Latin America right now. Meanwhile, the region would likely see increased investing due to the constant growth and scaling of the venture builders. Overall, it creates a mutually beneficial relationship immediately. Some venture builders in Latin America are already realizing great success. The industry as a whole should be seeing tremendous growth within Latin America very soon.