Investing in the Americas: Unlocking Capital for High-Impact Companies

Session Recap

Discover how investors are building bold, inclusive, and regionally connected pipelines to unlock capital not just for growth, but for real impact across the Americas. This insightful panel explored the opportunities and challenges of investing in high-growth companies in emerging ecosystems and overlooked geographies in the US and Latin America. Featuring experts from the venture capital and growth debt space, the discussion highlighted the critical need for capital outside traditional centers and strategies for bridging access gaps and managing risk in diverse markets.

Session Outline

Introduction of Panelists:
Rachel Smalls (Moderator, LaunchBlue Ventures), Julia Figeredo (Director, Latin America at Partners for Growth), and Dr. Ginger Rothwalk (Senior Investment Director, HG Ventures).

Endeavor’s Role:
Overview of Endeavor's role in connecting entrepreneurs and providing access to capital and mentorship in emerging markets.

Investor Network Initiative:
Discussion of the Investor Network initiative, pledging $1.7 billion to invest in Latino and Caribbean founders in Latin America and the US.

Capital Gaps Identified:
Identifying capital gaps, particularly the need for growth-stage funding (Series B, C, D) in underserved ecosystems after angel and seed rounds.

Partners for Growth Approach:
Partners for Growth's approach to providing growth debt solutions to companies not yet ready for traditional banks or seeking alternatives to equity dilution.

HG Ventures Thesis:
HG Ventures' thesis as a corporate venture arm investing in core, adjacent, and disruptive technologies within legacy industries (circular economy, energy, water, specialty chemicals, transportation infrastructure).

HG Ventures Asset Integration:
HG Ventures' focus on bringing assets and resources from the Heritage Group to help portfolio companies grow, while still seeking financial returns.

Impact and Scalability:
Evaluating impact, scalability, and opportunity set in trillion-dollar industries like water and construction, and the layering of sustainability and problem-solving.

Challenges for Overlooked Founders:
Challenges and patterns faced by underrepresented and overlooked founders when fundraising.

Importance of Storytelling:
The critical importance of storytelling for founders to attract investors, talent, and customers.

Closing Access Gaps:
Strategies investors can use to close access gaps, such as not requiring warm introductions and being responsive to outreach.

AI’s Growing Role:
The increasing role of AI (like ChatGPT) in helping both founders prepare for investor conversations and investors analyze opportunities.

Storytelling the Americas Opportunity:
The importance of storytelling about the opportunity set in the Americas and the role of hubs like Miami and regions like the Midwest in strengthening cross-border collaboration.

Midwest Region Strengths:
Highlighting the assets of regions like the Midwest, including access to major customers and loyal talent.

Perceived Risk Management:
Addressing misconceptions and managing perceived risks (political instability, economic instability, execution risk) in emerging markets and overlooked US geographies.

Risk Navigation Strategies:
Strategies for investors to navigate risk, such as partnering with local investors and heavily underwriting the business fundamentals for debt financing.

Portfolio Company Examples:
Examples of portfolio companies showcasing global applicability and significant impact: Pre-Tread (converting old tires into construction barriers) and BABA (micro-lending in Mexico). Koala (direct-to-consumer furniture in Australia and US) was also mentioned.

Optimistic Trends:
Optimistic trends and business models, including water technologies, navigating the impact of AI on knowledge workers, and advancements in longevity for healthier lives.

Notable Quotes

• "innovation is everywhere and opportunity is everywhere but capital is not."

• "all founders need to be better at storytelling."

• "We go where the entrepreneurs are."

Key Takeaways

• Build Local Ecosystems: Building strong local ecosystems and mentorship networks is crucial for entrepreneurs in underserved markets to learn how to navigate the fundraising process and access needed capital.

• Investor Preparedness: Founders must prepare diligently for investor outreach, understanding the specific focus and criteria of different types of investors (debt vs. equity, corporate vs. traditional VC). Leveraging tools like AI can aid in this preparation.

• Bridge the Access Gap: Investors can actively bridge access gaps for underrepresented founders by removing barriers like warm introduction requirements and committing to reviewing inbound opportunities.

• Manage Risk, Find Opportunity: Opportunities in emerging markets and overlooked US geographies offer significant potential, and perceived risks can be strategically managed through local partnerships and focusing on solid business fundamentals.

• Tell a Compelling Story: Telling a compelling story about the potential and innovation within these regions is vital for attracting the necessary capital and talent.

Resources Mentioned

• Organizations/Funds: Endeavor, Partners for Growth (PFG), Silicon Valley Bank (SVB), IDB Invest, HG Ventures, RTI International, Latinas in Tech, Investor Network, Endeavor Miami.

• Tools: ChatGPT / AI, Perplexity (Perplex City mentioned).

• Companies (as examples): Koala, BABA, Pre-Tread.

Action Items

• Attendees were encouraged to connect with the panelists and their teams after the session for further conversation and networking.