Ruta Startup

It’s simple for U.S. investors to invest in Peru startups

More and more startups in Peru are receiving investment from U.S. investors. Many of these startups have have reached product-market fit and some have already scaled across multiple countries in Latin America.

This trend is partly due to the growing tendency for Peru startups to set up U.S.-based entities as holding companies. Founders are using Simple Agreement for Future Equity (SAFE) financing documents, the standard document for early stage U.S. startups, allowing them to raise money from a wide variety of investors.

Photo by Willian Justen de Vasconcellos on Unsplash

Un punto de quiebre en el ecosistema emprendedor peruano

La novela que empezó en 2017, tuvo un final feliz el pasado 2 de diciembre con la publicación del Decreto Supremo 375-2020-EF, mejor conocido como el reglamento del Fondo de Capital para Emprendimientos Innovadores (FCEI). Como toda buena historia, tuvo momentos muy gratos como la inclusión del FCEI en el Plan Nacional de Competitividad y Productividad en 2019 y la aprobación de recursos por S/ 70 millones en enero de este año a través del Decreto de Urgencia 013-2020. Pero la sazón de la historia vino por los momentos de incertidumbre. En especial, por aquella generada en el ámbito político que incluyó que Perú no tenga poder legislativo (Congreso) durante algunos meses de 2019 y 2020, el proceso de vacancia presidencial del segundo semestre 2020 y -una no política, pero no menor-, pandemia mundial.

A continuación, voy a compartir una parte del análisis que realizamos en PECAP sobre el FCEI. El informe completo está disponible en la sub-sección “recursos” de este enlace: https://www.pecap.pe/data-y-recursos.

Youth Movement

Peru’s young people took to the streets last week and made their voices heard. Peaceful protests were met with police aggression and two people, Inti Sotelo Camargo and Jack Brian Pintado Sánchez, were killed. By Monday of this week, a new President, Francisco Sagasti, was chosen by congress to lead the country. President Sagasti has held many roles in his career, including leading FINCyT, a government fund to support initiatives in science and innovation.

Photo credit: Unknown. Source: https://twitter.com/psecada/status/1326908154882502662?s=20

From hunters to startup entrepreneurs

Women in Peru have been breaking paradigms for thousands of years. Literally.

This week, archaeologists concluded that 9,000 year-old skeleton of a woman found in the Andean highlands in Peru indicated that she was a hunter, rather than a gatherer. She was buried with a “big-game hunting kit,” according to the New York Times. While this finding was surprising to some scientists, it won’t be to the many female startup founders currently living in Peru today.

In fact, also this week, three Peruvian women were selected as finalists for the WeXchange Pitch Competition as part of the WeXchange forum, the largest forum for female technology entrepreneurs in Latin America.

Innovate Summit brings together the region’s top entrepreneurs

Most conferences in Peru have themes that are variations of “How can we build a better future?” Well, next week’s Innovate Peru Summit shows that the future is here and is being built by tech entrepreneurs.

With speakers like David Velez, CEO of Nubank, Mariana Costa, CEO of Laboratoria, and Simon Borreo, CEO of Rappi, it isn’t exaggeration to say this is the most significant conference of the year in Peru.

Sinba achieves landmark investment round

We are experiencing accelerating changes in food consumption in Latin America, and it is essential to tackle the sustainability issue now. Peru startup Sinba does just that, and investors have taken notice.

While well-known tech startups aim to get food to the end consumer, Sinba ensures the food waste is dealt with properly. Founders Pipo Reiser and Andrea Rivera recently raised an investment round that included participation from local individual investors and IDB Lab.

Here what you need to know about the round:

Pivots and Persistence

This week I’m sharing an article I recently wrote for Crunchbase. Many startups have found innovative ways to adapt and thrive through the current crisis. There are great examples from across Latin America, including a few startups with presence in Peru: Fitco, Poliglota and Joinnus.

You can find the article here: Pivots And Persistence: How Startups In Latin America Are Finding Ways To Survive The Current Crisis.

I hope you enjoy it and are as impressed as I am by startup founders’ capacity to adapt and persist over the last seven months.

Entrevista con Luis Narro, Director Ejecutivo de PECAP

Luis Narro es Director Ejecutivo de la Asociación Peruana de Capital Semilla y Emprendedor (PECAP). Previamente trabajó en Swiss EP y COFIDE. Más de 5 años de experiencia trabajando con organizaciones de soporte del ecosistema de emprendimiento en Perú, en especial, con los inversionistas de capital emprendedor.

Peru’s startup opportunity (gap)

Recently, ALLVP Research launched in twitter a Beta Version of a Latin America TechXplorers – Desitation Map. It shows in a graphic way the startups that have raised Series A rounds and have “boots on the ground” in different countries.

First, let’s give credit where credit is due. The work is being done by Peruvian Alexandra Jenkins, Senior Analyst at ALLVP. You can write her with ideas and updates at ajenkins@allvp.vc.

Source: ALLVP Research – Write ajenkins@allvp.vc to help keep it updated.

New entrants

Last year, I wrote about investment professionals from Peru taking on regional roles in the venture capital industry in Latin America. Well, the talent pool of Peruvians working in the startup community in Latin America continues to grow.

20+ Startups accelerating through 2020

By some measures, this has been a down year for Peru startups seeking to enter acceleration programs. For example, no Peru startups were selected for the latest batches of Y Combinator or 500 Startups Latam.

However, in many ways, founders in Peru or local acceleration programs are moving forward. Only in the last month, over 20 up-and-coming Peru startups were selected to particiate in acceleration programs. Many are relative newcomers to the startup community.

PECAP First Half Report

The Peruvian Association of Seed and Venture Capital (PECAP) has published its first half report for 2020.

The key highlights are:

9 interviews with founders and investors in Peru

Don’t worry, Ruta Startup is not launching a podcast.

Fortunately, there is no need. A great library of podcast content already exists for the regional tech scene, and the top podcasts in Latin America are interviewing members of the Peru startup community.

Here are a few podcasts featuring startup founders and investors in Peru.

¿Quieres ser parte del equipo Swiss EP?

El programa de emprendimiento Swiss EP tiene abierta la posición de Program Officer, una oportunidad muy importante para interactuar con el ecosistema de startups e innovación en el Perú y a nivel internacional.

Swiss EP ha venido apoyando al ecosistema de startups e innovación en el Perú desde el 2015. Durante este tiempo hemos trabajando con mas de 19 organizaciones en el Perú a las cuales hemos apoyado a través del conocimiento y experiencia de 50 expertos internacionales quienes han colaborado en desarrollar programas y/o proyectos de estas organizaciones y sus startups.

PVCS Masterclass: Preparando mi primera ronda de capital con inversionistas profesionales

On Wednesday August 19th, Roberte Arbe and I had the opportunity to share with startup founders during the Peru Venture Capital Series. We discussed considerations for raising funds from professional investors.

The session is in Spanish and titled: Preparando mi primera ronda de capital con inversionistas profesionales.

You can watch it on Youtube here.

There are two more days of the Peru Venture Capital Series next week, Wednesday the 26th and Thursday the 27th.

The event is free and you can register here.