If you are opening a new business in the Southern hemisphere or plan on expanding your company into the region, accessing venture capital firms in Latin America and the Caribbean is important. Latin America venture capital fund raising and private equity investment reached a record $4.4 billion in 2007 with venture capital firms in the Caribbean and venture capital funds in Latin America pumping money into real estate, energy, fuel production and distribution sectors.
Like their U.S. counterparts, Latin America venture capital firms are usually private partnerships or closely-held corporations that come from various sources including pension and endowment funds. Venture capital investing in Latin America is aggressive and the people controlling Latin America venture capital funds are demanding. They want to cash in quick and big, at least ten times what they invest. When attracting venture capital companies in Latin America and the Caribbean, consider the following:
- Research the Latin America venture capital firms that finance companies in your business sector and select 2 or 3 that you like best.
- Negotiate with those venture capital firms in Latin America that you selected and compare offers, choosing the one that offers the best terms.
- Don’t be afraid to start a bidding war among Latin America venture capital funds to finance your expansion.
Draft an air-tight business proposalLatin America venture capitalists don't want to waste time on a skeptical business plan. Your projected budget, earnings and losses will determine whether your company gets to tap into Latin America venture capital funds, so you must make sure that you are presenting a viable, sustainable business.
Research venture capital companies in Latin America and the CaribbeanFinding the right Latin American venture capital services for your company takes a considerable amount of careful research. You don't want to get stuck with venture capital firms in Latin America that do not suit your needs.
Travel to Latin American venture capital conferencesThe Latin America Venture Capital Association is just one of several organizations that provide important networking forums for venture capital firms in Latin America where senior managers from leading Latin America venture capital funds, international public and private sector investors and high-level government officials address the environment in the region's venture capital and private equity markets.
- Network in the U.S. with venture capitalists organizations and Latin American business development organizations to get a leg up on the competition.