Improving the venture capital ecosystem in Latam

Integral service around a transaction
BY : Diego GutiérrezSeptember Wed, 2013

download (1)According to a study by The Economistthe assessment made of the ecosystem of the private equity and of the venture capital is in Latam has shown significant improvements, with local regulation having improved the investment climate.

An overall improvement with little change in ranking

Both small and large countries have improved their capacity to develop their domestic private equityThe EU has made progress in transparency and legal development, and in creating better conditions for local entrepreneurs. All countries have improved, even those with the lowest scores have remained stable. Mexico and Colombia are now very close to the two leaders: Chile and Brazil.

Chile leads the ranking for the eighth consecutive year

The improvement has come hand in hand with the adoption of international accounting standards by unlisted companies. The country leads the region in intellectual property protection, judicial transparency and perceptions of corruption.

"Chile has a score of 76, the same as Spain for example. The Chilean government is making an effort to help SMEs and start-ups with the aim of encouraging entrepreneurship (start-up Chile) and becoming the centre of operations for innovative companies that want to have a presence throughout Latin America. There are several funds and accelerators with which Spanish companies are reaching agreements for their international expansion" says Diego Gutierrez, an expert in international finance at ABRA INVEST.

Argentina the "ugly duckling" of the region

Despite the overall good news from the region, Argentina continues to worsen in both its macro performance and its approach to investors. With no change in the score, Argentina ranks near the bottom, close to the Dominican Republic. "Another piece of good news for the entrepreneurial landscape is the establishment of the first seed fund in the Dominican Republic created by the Interamerican Development Bank. Fund managers' interest in finding small opportunities is growing, especially in Central America and the Caribbean," says Diego Gutierrez.

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Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

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