Diego Olcese, Crehana | How Edtech Evolved in LatAm and the Challenges of Founding Young [Ep. 33]

The audio and video are in Spanish. These notes are a translation.

Edtech, the sector that combines education and technology, is at its best moment. And this could not be the exception in Latin America. A few weeks ago, Crehana, one of the leading online education platforms in the region with more than 5 million students, raised a Series B of US $70 million, the largest to date for an Edtech startup in Latin America, with investors such as General Atlantic, Mountain Nazca, and Rethink Education. And today we have its CEO and cofounder, Diego Olcese.

Diego told us about his experience raising capital from the first seed round through the Series B, how he sees the evolution of Edtech in Latin America, and how his evolution as a founder and CEO has been.

What You Can Learn Today

• Fundraising and differences according to the startup’s stage
• Trends in the Edtech sector in Latin America
• Recommendations for founding young

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Crehana’s Fundraising

• [1:00] - How did Diego get into the world of startups?
  • Working as a business analyst at an E-commerce
  • Visiting large companies and startups in Sillicon Valley
• [7:04] - Crehana’s pre-seed round
  • Winning a Wayra Perú contest
  • Peruvian ecosystem with angel investments
  • Looking for more developed markets to raise capital, such as England
• [11:23] - Differences between Crehana’s Series B round and its pre-seed
  • It depends on the stage of the business and of the team
  • Pre-seed: you have little capital but a clear vision
  • Seed: greater traction, a validated business model, and a built team
  • Series A: proven acquisition channels, a robust team, identified metrics, monthly and quarterly plans and objectives
• [19:10] - Why did Crehana raise such a large round? (US $70 million for a Series B)
  • Sophistication of how the working middle class consumes
  • Increase in digital consumption by the middle class
  • Enough capital to be able to consolidate in the market

Insights on Edtech and the Creators Economy

• [23:00] - Tradeoff between recorded classes and live classes
  • The future of learning is hybrid: pre-recorded and live classes
  • Live learning generates greater engagement and outcomes
  • Slow and limited internet access in Latin America
• [27:10] - Strategies to increase the outcomes and retention of pre-recorded classes
  • Strong investment in course design
  • Complete ownership of all the courses and the pre-recorded classes in order to have control of the results
  • Making shorter, more practical courses that generate greater impact
• [30:10] - Differences between selling courses in B2B and B2C
  • More than 50% of Crehana’s revenue comes from B2B
  • Entering companies’ workforces
  • Learning paths focused on strengthening specific weaknesses of the company
  • Crehana is not a content provider, it is a talent development ecosystem
• [33:56] - Why did Crehana decide to use influencers as teachers?
  • A great deal of experience behind them that can be shared with others
  • Greater brand recognition
• [36:06] - Diego’s opinion on the content creator market boom
  • It is a worldwide trend
  • It encourages other Edtech startups to improve their value proposition
  • Making the market more dynamic

Evolution as CEO and Founder

• [41:05] - Difficulties of founding young and tips for facing them
  • Lack of knowledge of what you are doing
  • Work routines to reduce that lack of knowledge
  • Reading daily about new things
  • Total clarity on what you can be the best at and what you cannot. Working on your strengths and hiring people who compensate for your weaknesses
• [46:25] - Challenges of going from being a founder to a CEO, from experience at Crehana
  • Establishment of a leadership culture
  • New management structure
• [50:23] - Lessons as a musician that shaped Diego’s path as a founder
  • Doing things out of passion and not for money
  • Doing things professionally and understanding the separation of roles
  • Having fun along the way

Tweet Round

• [58:10] -
  • Recommended book: The Time of the Hero by Mario Vargas Llosa
  • Changes in the startup ecosystem: access to capital for Latino founders
  • Founders to interview: Joao Matos of Urbvan

Episode Mentions

You can follow Diego on Twitter

Recommended book: The Time of the Hero by Mario Vargas Llosa
Founders to interview. Joao Matos of Urbvan

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