Felipe Santamaría, Rockstart | How Accelerators Level the Playing Field, Evaluating Startups, and Raising Capital [Ep. 71]

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

Where do you find mentorship, community, and support to start a company? If it is your first time starting a company, startup accelerators are the best option, and they also invest capital. To talk about this, we invited Felipe Santamaría, cofounder and partner at Rockstart, one of the most important accelerators in Latin America, which to date has invested in more than 40 startups, including HoyTrabajas, NEU Energy, and Saludtools.

We talked about the evolution of accelerators in our region and what Rockstart has done to differentiate itself in a context where there are more financing alternatives for startups. Felipe also told us what he looks for in a founding team and how founders who have raised little capital are going to shine in the current market. Finally, he left us some lessons on ecosystem building from his role promoting entrepreneurship and angel investment in Colombia.

Thanks to the Rockstart team, Felipe Restrepo of Vecindario, Santiago Salazar of hacku, Alejandro Kratc of Rocketfy for their question recommendations, and to Nicolás Rojas of Factcil for his help coordinating and preparing this interview.

What You Can Learn Today

• The role accelerators play in the development of startups
• Tips for raising capital in an uncertain context
• How to create a startup ecosystem

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Youtube Timestamps*

About Felipe and Rockstart

• [1:19] - How did Felipe get into the world of startups?
  • From a young age he started various kinds of businesses
  • He started getting involved with the ecosystem at hackathons
  • He created a startup in the energy sector
• [2:22] - What is Rockstart?
  • Rockstart is a Dutch accelerator
  • Since 2016, Felipe has led Rockstart’s operations in Latin America
  • At Rockstart LatAm they have invested in 40 companies
  • Globally, Rockstart has made close to 250 investments

The Evolution of Accelerators

• [5:18] - Evolution of the entrepreneurial ecosystem
  • The ecosystem has grown exponentially
  • The Latin American founder is benefiting a lot from the current state of the ecosystem
  • Rockstart has had to change its investment terms to adapt to market dynamics
• [9:03] - Rockstart’s value proposition
  • Exclusivity: cohorts of 10 startups
  • A long-term relationship with startups
  • A very robust mentor community
  • A 6-month support program
• [10:41] - Why have so few unicorns gone through accelerators?
  • Accelerators are not for everyone
  • Many unicorn founders tend to have experience starting companies
  • Accelerators help you gain experience, build relationships, and increase the chances of success
  • Less than 8% of the startups that go through Rockstart fail
• [14:30] - The importance of personalized support
  • Rockstart’s bet is on personalization
  • Depending on the stage of the venture and the founders’ experience, there will be accelerators that fit their needs better
• [17:34] - Who should apply to an accelerator?
  • Founders without many connections or access to capital
  • Founders with strong values, whose process has not been easy

Lessons from Investing in Startups

• [23:33] - What do accelerators take into account?
  • The relationship with startups is long term, at least 10 years
  • They work with passionate people who are willing to work
  • The team’s motivation and purpose are important
  • Understanding of the market and the user
• [28:33] - Startup selection at Rockstart
  • Differentiation between traditional companies and technology companies
  • The information filled out by the startups is validated
  • On their selection days, they hold interviews with the founders
  • They evaluate the interaction with the founders, from start to finish
• [35:01] - Entrepreneurial talent without “pedigree”
  • At Rockstart they bet on founders with conviction
  • “Pedigree” is not a success factor
  • Understanding the user beats any other quality
• [38:48] - Mistakes when raising capital
  • Not being financially educated
  • Not understanding the venture capital industry in depth
  • Giving investment funds too much equity
  • Offering things that do not make sense for investors
• [43:29] - Advice for raising capital in an uncertain context
  • The market is regulating itself, it is not in a crisis
  • Companies that grow quickly with little capital will be rewarded
  • Real data will be worth more than projections
• [49:02] - How to give feedback?
  • Understanding that you do not know everything
  • Being empathetic and humble, arguing with real experiences
  • Respecting the work of founders
  • Encouraging reciprocal feedback

Creating an Ecosystem Through Rockstart

• [52:32] - Lessons from creating an ecosystem
  • Understanding that it is a long-term process
  • Focusing on generating the maximum possible value
  • Setting ego aside
  • Helping and supporting with genuine interest
• [1:00:08] - The role of angel investors
  • Their role is indispensable
  • The largest startups in LatAm are financed by foreign funds
  • Investors in the region should have a greater stake in startups

Tweet Round

• [1:05:00] -
  • Recommended books: Emprendedor Mínimo Viable (his book), and Leaders Eat Last by Simon Sinek
  • Changes in the Latin American startup ecosystem: that founders without “pedigree” believe more in their abilities
  • Founder to interview: José Vélez, of Bold
  • Investor to interview: Hernán Kazah, of Kazsek Ventures

Episode Mentions

You can find Felipe on Twitter and LinkedIn

Recommended book: Emprendedor Mínimo Viable by Felipe Santamaría and Leaders Eat Last by Simon Sinek

Founder to interview: José Vélez, of Bold

Investor to interview: Hernán Kazah, of Kazsek Ventures (listen to the episode with Hernán here)

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