To date MrPink has already invested in 3 ventures and plans to make at least one additional investment before the end of the year; the plan for 2022 is to perform 10 investments plus. MrPink specializes in seed investments of $ 100 million to $ 300 million and Series A follow-ons of $ 300 million to $ 750 million.
“We only make Series A investments on our portfolio seed, since we seek to build long-term relationships with entrepreneurs ”, clarified Haro.
Once the round is closed, MrPink quickly spins the funds and is then made available to the CEO and his team to serve as additional resources. Their entrepreneurs seek them out to discuss strategy, product, review business plans, sales processes, interview key resources and, of course, plan the next rounds.
“We move fast, we clearly explain the process and we interact in a fluid and transparent way. We do not seek to be politically correct or to please everyone, we are brutally honest and direct. And we have a base of investors who share our values and attitudes, ”added Haro.
“Talent does not respect geographies; culture trumps strategy; flexibility to experience; diversity as a competitive advantage. If we tell you that we are going to be there, we are going to be for real ”, they explain.
According to LAVCA (Latin American Venture Capital Association), during the first half of 2021, investment in venture capital in LATAM reached US $ 6.4 billion. In just one semester, 2021 exceeded the total invested in all of 2020 by more than 50%, or more than 30% invested in 2019. LAVCA estimated that 2021 will close the year accumulating more than US $ 10 billion invested: an increase than 20 times when compared to 2016.
“Human intuition is bad at estimating exponential processes. When we see a growth of 20x in five years, it is difficult for us to conceive that it is sustainable, but the reality is that the level of VC investment in LATAM compared to the GDP of the region is minimal ”, explained Haro.
The latest report from Atlantico VC (one of the leading firms in the region) shows that the market valuation of LATAM’s technology companies in 2020 represented only 2.3% of the region’s GDP, far behind 9.9 % from India, 25.4% from China, or 48.2% from the USA.
Although investment in LATAM increased significantly, the reality is that Brazil takes more than half of these investments, followed by Mexico with almost a quarter of the total. Hence part of the relevance of MrPink, since it focuses in a particular way on CAPUC: Chile, Argentina, Peru, Uruguay and Colombia.
In addition, it should be considered that, today, despite the recent emergence of various funds, access to capital remains scarce, especially for entrepreneurs who do not have direct connections with risk project financers, and that is where there is the great opportunity that MrPink is pursuing.
“Everyone wants to invest in entrepreneurs tested, graduates of certain universities or accelerators, which function as symbols of quality, a kind of certification. The startups that have these entrepreneurs have, without a doubt, better success rates, but, many times, it is simply a self-fulfilling prophecy, which allows them better access to rounds of financing and contacts ”, explains the CEO of MrPink.
“Of course, the market adjusts to this, increasing the valuations of these startups,” says Haro, who, for his part, did an MBA at Berkeley, but acknowledges that the university did not improve its intrinsic capabilities: “I’m just as tenacious and capable today than fifteen years ago before going through there ”. Investors can capture more value by investing in “unproven” entrepreneurs, which is why MrPink is confident in its ability to identify those key qualities.