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In this Fintech Leaders edition, I sit down with the outstanding Paulo Passoni, Managing Partner at SoftBank Latin America, the largest venture capital fund in LatAm that’s invested almost eight billion dollars in 80 companies like Nubank, Kavak, Creditas, Bitso, Rappi, Uala, Clip, Addi, and many many more.
In this masterclass episode, we discuss:
Navigating a bear market – Paulo shares lessons for entrepreneurs in a tough equity-raising environment, where unit economics and execution are now more important than ever and why venture-backed companies can’t afford NOT to tackle big problems.
“it's okay to burn cash, but if your gross profit margin is negative, nobody's gonna want to invest in your company. So you should have at least some clarity at the product level, the unit level, that what you're doing makes sense.”
Shared traits of the strongest founders and why being holistic and talented in multiple different areas is critical for entrepreneurs:
The best entrepreneurs don't do it for the money. The money is a consequence, not the goal.
The best are obsessed (Elon Musk obsessed type)
The best entrepreneurs are very curious and are always learning. Growth mindset!
The best entrepreneurs are amazing at fundraising and attracting talent. Because, in fact, attracting talent and fundraising is the same skill.
The best entrepreneurs are holistic.
“You don't have to be top 1% at execution. You don't have to be a top 1% philosopher. You don't have to be a top 1% strategic thinker, or a top 1% fundraiser. But you've got to be top 10% in each of those things. And that’s a rare thing.”
Valuable advice for new international investors coming into Latin America, or any emerging market for that matter, and why it’s important to build a robust team and empower them with access to the global institutional knowledge of the firm.
“The question is always one of relevance… the person covering LatAm has to be more of a generalist, and have some incentives where they are talking and learning from each other. So that the knowledge that the firm has globally gets translated to the picks in the region.”
Reflections of the best company boards and key characteristics necessary for boards to succeed and add value to the company... and a lot more!
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Miguel Armaza is Co-Founder & Managing General Partner of Gilgamesh Ventures, a seed-stage investment fund focused on fintech in the Americas. He also hosts and writes the Fintech Leaders podcast and newsletter.
Paulo Passoni, SoftBank Latin America Managing Partner – Investing $8 Billion in 3 years, Navigating a Bear Market, & What SoftBank Looks for in Founding Teams