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Rodrigo Baer.vtt

English

{{00:00:07}}
I think we're now at the end of the
first cycle of Venture in Brazil.

{{00:00:11}}
We started basically in 2022.

{{00:00:14}}
It's 12 years in.

{{00:00:15}}
So we're now seeing the first few
exits and we're seeing that pool of

{{00:00:19}}
talent that has learned how to scale
startups coming back to do it again.

{{00:00:23}}
And to me, that's the most
exciting change in the ecosystem.

{{00:00:26}}
Now we got teams that have scaled
and founders that have built it

{{00:00:30}}
once coming back to do it again.

{{00:00:37}}
I think there is a big theme
around general efficiency.

{{00:00:41}}
In the economy, if you look at
productivity in Latin America, still

{{00:00:45}}
hampered, and that suffers from the
lack of skilled labor as we start to

{{00:00:51}}
replace that need and drive productivity
on that on the existing skilled

{{00:00:56}}
labor, we reduce that bottleneck.

{{00:00:58}}
So that's one.

{{00:00:59}}
The other one, which is
really big, is health care.

{{00:01:01}}
Brazil is the second largest
private health care system

{{00:01:04}}
in the world after the U.

{{00:01:06}}
S., with problems just as big as the U.

{{00:01:09}}
S.

{{00:01:09}}
market.

{{00:01:10}}
Those are two big things
that we see across.

{{00:01:19}}
So I think Latin America has its
own set of problems, some of them

{{00:01:24}}
which translate well to the U.

{{00:01:26}}
S.

{{00:01:26}}
Some that don't, right?

{{00:01:28}}
But are shared across the globe.

{{00:01:30}}
So when you build a product in Silicon
Valley, you build a product for

{{00:01:34}}
Silicon Valley, which drives a hyper
specialization normally in that product.

{{00:01:39}}
So you take HubSpot.

{{00:01:41}}
You need six people to run
HubSpot efficiently, right?

{{00:01:44}}
The vast majority of
the world, even the U.

{{00:01:47}}
S.

{{00:01:47}}
outside Silicon Valley, doesn't
have six people to run HubSpot.

{{00:01:51}}
They have one person
that's doing all of it.

{{00:01:53}}
So you're developing different
products to cater to the same need.

{{00:01:57}}
So that's one big component, right?

{{00:01:59}}
It's frugality on how you design.

{{00:02:02}}
The other aspect is there are a bunch of
infrastructure that was built in the U.

{{00:02:07}}
S.

{{00:02:08}}
that's going to get leapfrogged.

{{00:02:10}}
In Latin America, right?

{{00:02:11}}
So those are two big themes that
we see and that translates to the

{{00:02:16}}
broader world outside of LATAM.

{{00:02:18}}
And then there are Latin American
problems themselves where

{{00:02:22}}
we're best in class, right?

{{00:02:24}}
So if you look at the FinTech
infrastructure in Brazil, probably

{{00:02:29}}
best in class because we survived.

{{00:02:30}}
For 30 years of hyperinflation.

{{00:02:33}}
And that's why you see the Brazilian
FinTechs being successful outside

{{00:02:38}}
like New Bank, Pisma, and so on.

{{00:02:41}}
But also fraud is
rampant in Latin America.

{{00:02:43}}
Then you get companies like incognito
off zero that are addressing that product

{{00:02:48}}
blend for Latin America, but that creates
such a great product that expand outside.

{{00:02:58}}
We talk very little about.

{{00:03:00}}
The Latin American ecosystem, right?

{{00:03:02}}
We get a lot more noise
coming out of Southeast Asia.

{{00:03:07}}
And honestly, we are twice the GDP, about
the same population as, Southeast Asia.

{{00:03:16}}
We're twice the GDP of India,
much more capital efficiency

{{00:03:20}}
in actually building unicorns.

{{00:03:22}}
And we don't talk enough about the results
that the Latin American funds have.

{{00:03:26}}
If you look at the statistics, 50
percent of the Latin American funds

{{00:03:31}}
would be in the top quartile globally.

{{00:03:33}}
25 percent would be in the
top 5 percent globally.

{{00:03:36}}
Those are outstanding results.

{{00:03:38}}
It's driven by a large market with
massive inefficiencies and capital

{{00:03:42}}
scarcity, which lets the local funds
really optimize their capital allocation.

{{00:03:49}}
We get so much headline noise regarding
Latin America that gets all the air out

{{00:03:55}}
of the room and we can't talk about the
good things that are happening there.

{{00:03:59}}
And it takes time for people to
realize that new banks, new banking

{{00:04:03}}
is worth 70 plus billion dollars.

I think we're now at the end of the
first cycle of Venture in Brazil.

So we're now seeing the first few
exits and we're seeing that pool of

talent that has learned how to scale
startups coming back to do it again.

And to me, that's the most
exciting change in the ecosystem.

Now we got teams that have scaled
and founders that have built it

I think there is a big theme
around general efficiency.

In the economy, if you look at
productivity in Latin America, still

hampered, and that suffers from the
lack of skilled labor as we start to

replace that need and drive productivity
on that on the existing skilled

The other one, which is
really big, is health care.

Brazil is the second largest
private health care system

Those are two big things
that we see across.

So I think Latin America has its
own set of problems, some of them

So when you build a product in Silicon
Valley, you build a product for

Silicon Valley, which drives a hyper
specialization normally in that product.

You need six people to run
HubSpot efficiently, right?

The vast majority of
the world, even the U.

outside Silicon Valley, doesn't
have six people to run HubSpot.

They have one person
that's doing all of it.

So you're developing different
products to cater to the same need.

The other aspect is there are a bunch of
infrastructure that was built in the U.

So those are two big themes that
we see and that translates to the

And then there are Latin American
problems themselves where

So if you look at the FinTech
infrastructure in Brazil, probably

And that's why you see the Brazilian
FinTechs being successful outside

But also fraud is
rampant in Latin America.

Then you get companies like incognito
off zero that are addressing that product

blend for Latin America, but that creates
such a great product that expand outside.

We get a lot more noise
coming out of Southeast Asia.

And honestly, we are twice the GDP, about
the same population as, Southeast Asia.

We're twice the GDP of India,
much more capital efficiency

And we don't talk enough about the results
that the Latin American funds have.

If you look at the statistics, 50
percent of the Latin American funds

25 percent would be in the
top 5 percent globally.

It's driven by a large market with
massive inefficiencies and capital

scarcity, which lets the local funds
really optimize their capital allocation.

We get so much headline noise regarding
Latin America that gets all the air out

of the room and we can't talk about the
good things that are happening there.

And it takes time for people to
realize that new banks, new banking

Rodrigo Baer, Co-Founder & Managing Partner at Upload Ventures, shares his insights on the evolution of venture capital in Brazil and Latin America. From the rise of repeat founders to the efficiency-driven innovations reshaping industries like fintech and healthcare, Rodrigo breaks down the key trends shaping the region’s startup ecosystem.