Hernan Kazah, Kaszek Ventures | Lessons from the VC That Backed 9 Unicorns [Ep. 23]

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

Few people have had as much influence on the origin, present, and future of Latin America’s startup ecosystem as today’s guest. Hernan Kazah not only cofounded Mercado Libre, the most valuable Latin American technology company, but also founded Kaszek Ventures, the leading Venture Capital fund in the region, which has invested in 9 unicorns, including Nubank, Kavak, and Bitso.

In this episode, we talk with Hernan about the current state of the venture capital industry and the lessons he has learned investing in some of the most impactful startups in Latin America.

To date, Kaszek Ventures has invested about 1,000 million dollars in startups across Latin America and has just raised 2 new funds to invest 1,000 million more.

If you like the podcast, the easiest way to help us is by leaving a review with ⭐⭐⭐⭐⭐ on Apple Podcasts. It takes less than 1 minute and helps us convince the hardest guests to land, such as David Vélez, CEO and founder of Nubank, whom we would love to interview.

Origin and Present of Kaszek Ventures

  • [1:00] - How did Hernán get into the world of startups?
    • MBA at Stanford
    • Founding of Mercado Libre
  • [2:15] - What is Kaszek Ventures and why has it become one of the leading startup investment funds in Latin America?
    • Lack of Venture Capital funds in Latin America
    • Complementing entrepreneurs with strategic knowledge and emotional support

State of Venture Capital in Latin America

  • [4:38] - Significant changes in the venture capital ecosystem in the region and the evolution of Kaszek
    • Moments of acceleration for different technology trends
    • Greater activity in the ecosystem
    • Adopting international trends
    • Interest from global funds in Latin America
    • Greater internet access and the rise of smartphones
    • Digital transformation
  • [17:20] - Is more money always better for the ecosystem?
    • Attention from all the global funds on Latin America
    • Great potential of technology to solve Latin America’s problems
  • [21:50] - Advice for entrepreneurs who do not have much access to capital or investors
    • Obsession with the product and with its evolution
    • The best technology is not always the one that wins
  • [27:18] - Competition between local venture capital funds versus foreign funds
    • Taking enough good deals to have good returns
    • More competition means greater growth of the ecosystem

Kaszek Ventures’ Lessons After Investing in 9 Unicorns

  • [34:16] - Reasons for Kaszek Ventures’ success
    • A unique group of technology founders with more than 20 years of experience
    • Passion for helping other entrepreneurs and scaling startups
  • [36:40] - The Kaszek Ventures differentiator that has allowed them to have a successful portfolio
    • Its own vision of the technology and venture capital industry
  • [43:06] - Common characteristics of the most successful entrepreneurs
    • A very clear vision of what they want to do and where they want to get to
    • Irrational commitment and discipline to make that vision a reality
    • A lot of leadership and the ability to convey the vision to others
  • [46:55] - Tips for people who want to start building a company
    • Entrepreneurs come from everywhere
    • Adding relevant experience
    • Building a good network of contacts

Evolution of a Venture Capitalist’s Role

  • [51:10] - How does Hernán help the funded startups as they progress?
    • Focus on Seed and Series A investments
    • Constant follow-up with the teams
    • Suggesting ideas and adapting to the team’s maturity
  • [56:02] - Lessons from going from entrepreneur to investor
    • Assuming there will always be lost battles when investing
    • Focusing resources on the startups with the greatest growth potential
    • The team as the determining factor

Tweet Round

  • [1:03:16] -
    • Recommended book: Built to last
    • Changes in the startup ecosystem: more engineers and more capital
    • Investors to interview: Nicolas Szekasy of Kaszek Ventures

Episode Mentions

You can find Hernán on Twitter and LinkedIn

Recommended books: Built to Last

Entrepreneurs: Nicolas Szekasy of Kaszek Ventures

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