1. Harvard Business School - Latin America y Venture Capital Club
Venture Capital Opportunities in South America
A Fund Manager's Perspective
Boston, September 2012
Lisandro Bril
Founder & Managing Partner
HoldInvest, AxVentures/Pymar & EMVC1
Twitter: @lisandrobril 1

2. Lisandro Bril has 30+ years of Entrepreneur, Management
Consulting and Venture Capital experience
Lisandro Bril is Managing Partner of AxVentures – Pymar Fund’s manager in Argentina. He is the founder and Managing
Director of Holdinvest S.A., a company focused on providing advisory on venture capital issues to investors and
entrepreneurs in Argentina. He has almost 30 years of experience as an entrepreneur and a Top Management
Consultant on Strategy, Organization and Executive Search for world class companies.
The trajectory of Mr. Bril in the field of venture capital is associated with his auspicious experience as Angel investor
(Sales ESS sold to Oracle) CEO of BGS Seed Capital Fund in Latin America –Argentina-Brazil-Mexico and Venezuela) and
CEO i5/Hicks Fund in Argentina, those funds invested U.S. $ 17.5 MM in emerging technology companies. The fund was
able to repay money to investors through the successful case of Amtec Software Company, now Neoris, as well as
Comunia, B2B Latin America, PalmSite, Gemelo.
Prior to this, Mr. Bril founded Booz Allen Hamilton in Argentina, and was it’s Managing Director. He worked on several
projects in South American financial services, automotive industry restructuring, privatization and diversification of
conglomerates in the chemical and steel industries, both in the public and private sector. Mr. Bril also worked for seven
years as Partner at both Spencer Stuart and Korn/Ferry, the Executive Search firms.
Between 1985 and 1989, he was Undersecretary of State for Foreign Trade, and as such, he was responsible for the
administration of exports and imports and for the exports promotion policies of Argentina’s non traditional sectors. He
actively participated in the creation of MERCOSUR.
Mr. Bril is co-founder of Endeavor Argentina and currently advises its Global Management on Seed Capital Financing
and is a participant in Endeavor Catalyzer VC Fund; co-Founder and Treasurer of Fundación Equidad; former President
of Harvard Club Argentina; former member of the Foreign Trade Commission of the American Chamber of Commerce in
Argentina (AmCham) and the International Organizations Commission of the Unión Industrial Argentina (Argentine
Industry Organization). Mr. Bril also participated in the organization of the Group of 50 Latin-American Business
Leaders, based in Washington (Carnegie Endowment for International Peace).
Mr. Bril holds a BA in Economics (Cum Laude) from University of Buenos Aires, and a MPA from Harvard John F.
Kennedy School of Government. He also worked as a Case Writer for Harvard Business School.
2

3. Table of Contents
• The Latin American opportunity
• Our experience in VC Investing
• Going forward
‒ New Fund
‒ Team
• Opportunities for MBAs
• Annex
3

4. Table of Contents
• The Latin American opportunity
• Our experience in VC Investing
• Going forward
‒ New Fund
‒ Team
• Opportunities for MBAs
• Annex
4

5. Latin America is an attractive region for investments due to its
scale and its fast growing market place
Emerging Middle Class
 580 million people
 Combined GDP USD 5.15 trillion
 Average GDP growth 5.7% for 2010
and 4% expected for 2011
 Portuguese language: 200 MM,
including Portugal
 Spanish language: 480 Million people
including Spain and US Hispanic
Urbanization
 20 countries
 5 cities with over 7MM people
Entrepreneurship and Innovation
 Challenges: sustain growth, reduce
poverty and inequality
 Innovation and entrepreneurship are
critical
 Key player in Cloning-Copycats, Open
Innovation and Hybrid projects
 Latam executions of USA technology
innovation for Emerging Markets (eg.
Legatum)
Source: World Economic Outlook, April 2010, IMF 5

6. … as well as an expanding GDP growth of 5% fueled by external
and domestic demand
Selected Latin American Countries
Size and Performance
2011 GDP Real GDP Growth
International US$ PPP Billion
10.0%
15,065 8.0%
8.0% 6.9%
6.0% 5.1%
4.4%
38%
4.0%
USA
2.0% 3.0%
-0.9% Selected Countries
1.5% 1.8%
5,790
0.0%
2008
-0.3% 2009 2010 2011 2012
-2.0%
-4.0%
-3.5%
Selected LA Countries USA -6.0%
Selected Countries: Argentina, Brasil, Chile, Colombia, Mexico, Peru and Uruguay
Source: Euromonitor 6

7. The region is characterized by an improvement-driven
entrepreneurial culture
Improvement-Driven Opportunity
Entrepreneurial Activity: Relative
Prevalence (*)
60 53 55
50
54 % of the population 18-
64 that are involved in
46 47
50 41 41
34
an entrepreneurial
40
30
20 venture
10
0
Dinama…
Reino…
Hungría
Croacia
Argentina
Sudáfrica
Brasil
Grecia
Japón
Francia
Finlandia
China
Chile
Noruega
Perú
Eslovenia
Uruguay
Italia
Bélgica
Alemania
Holanda
EE.UU.
E. Arabes
Colombia
Letonia
España
Islandia
Malasia
Rusia
(*)Improvement-Driven Opportunity Entrepreneurial Activity: Relative Prevalence: Percentage of those involved in TEA who (i) claim to be driven by
opportunity as opposed to finding no other option for work; and (ii) who indicate the main driver for being involved in this opportunity is being independent
or increasing their income, rather than just maintaining their income
Source: Global Entrepreneurship Monitor (GEM) 2009
7

8. The entrepreneurial Ecosystems in Brazil, Chile, Colombia and
Peru are the most attractive for VC Investment
CURRENTLY DO NOT HAVE
CONDUCIVE BUSINESS AND/OR
REGULATORY ENVIRONMENT
Panama, Barbados, Bahamas, J
amaica, Suriname, Trinidad &
MOVING TOWARD CONDUCIVE Tobago, Bolivia, Paraguay, Beliz
BUSINESS AND/OR e, Dominican Republic, El
MOST DEVELOPED VC REGULATORY ENVIRONMENT Salvador, Guatemala, Haiti, Hon
ECOSYSTEMS Mexico, Uruguay, Argentina, C duras, Nicaragua, Ecuador, Guy
Brazil, Chile, Colombia, Peru osta Rica ana, Venezuela
• Entrepreneurship is flourishing • Early stages of corporate governance
• Needs to be developed further awareness
• Angel groups starting
• Most promising VC ecosystems • Angel groups starting
• Incubators are commercializing
• Acceptable legal, tax and regulatory • Scarcity of capable local VC fund
• Entrepreneurs starting to
frameworks in place managers
understand VC
• Fund managers with track records • Business environment at times
• Corporate governance and
• Local capital markets and strategic challenging
accounting standards receiving
exits possible attention • No local laws for VC investing, so only
• Numerous SMEs and offshore funds are possible
• Few capable local VC fund managers
entrepreneurship culture • DFIs and foreign PE regional funds are
• Funds with track record in PE only
• Still room for improvement the main investors in VC/PE
• Some government actions are not
• PE is most developed in Brazil, but • Pension funds not investing in VC
investor-friendly
early stage VC, seed and angel • Difficult to generate adequate deal flow
• VC laws need to be improved or put
investing due to size of markets
in place (e.g. Argentina, Mexico)
• Exit options are limited
• Tax treatment of VC investments
needs improvement • Government does not provide
organized support to VC industry
• Exit options are limited
• Minority shareholder protection rights
• Pension funds do not invest or are
are ambiguous
not permitted to invest in VC
• Low levels of entrepreneurship
• No organized government support to
VC • Few incubators
• Minority shareholder protection • Quality of accounting standards is
rights are ambiguous ambiguous
Source: “Venture Capital at the MIF: Empowering • VC and seed investing not well-known
SMEs and entrepreneurs in Latin America and the
Caribbean”, presentation by Susana Garcia-
Robles, FOMIN, April 2010 8

9. Which is highly correlated with the Institutional Framework for
VC. There is still room for huge growth of PE-VC/GDP
LAVCA Scorecard & PE-VC/GDP
Source: Adapted from LAVCA, LAVCA 2011 Scorecard: The Private Equity and Venture Capital Environment
in Latin America, (NY, NY: LAVCA), 2011, p. 5.
9

10. Colombia, Mexico, Peru and Chile are the fastest growing
destination for Private Equity investments over the next 2 years
LPs' Planned Changes to EM PE Investment Strategy Over
the Next 2 Years
0% 10% 20% 30% 40% 50% 60%
Latin America (ex. Brazil) 38% 16%
Southeast Asia 41% 12%
Brazil 24% 28%
China 26% 18%
Turkey 29% 14%
India 16% 20%
Sub-Saharan Africa 20% 21%
Central/Eastern Europe 11% 13%
Russia/CIS 11% 10%
MENA 11% 17%
Expand Investment Begin investment
Source: Emerging Markets Private Equity Association “Global limited partners survey” May 2012
10

11. Table of Contents
• The Latin American opportunity
• Our experience in VC Investing
• Going forward
‒ New Fund
‒ Team
• Opportunities for MBAs
• Annex
11

12. We have managed 4 funds -2 Latin American and 2 Argentinian-
in technology innovation with successful returns
Fund Vintage LPs Stage Capital Companies
• FEC • Keclon
• MIF • Zauber
AxVentures/ • COFIDES
Seed & • GranData
2009 USD 18MM •
Pymar Series A Cupoint
• CAF • PixOwl
• Private • BioScience
Argentine
HoldInvest Family
• Technisys
Offices &
Technology 2008 High Net Growth USD 1MM (software
for Banks)
Fund Worth
Individuals
• Amtec/
Neoris 1
• Despegar
Hicks Muse • BonVivir
I5 Hicks & Seed & USD 13.5 • Certant
1999 MM
• Gemelo
Muse / BGS Management Series A • Comunia
Affiliate • Advertium
• Palmsite
• B2B Latin
America
1) Mercado Libre was a direct investment of HMTF Partners
12

13. AxVentures/ PYMAR and HoldInvest
Date Date
Company Description
Invested Realized
Development of an enzyme that
raises the quality of vegetal oil
derived biodiesel, by reducing 12/11 -
the steryl-glucosides amounts.
Software development boutique
focused in applications for social 12/11 -
networks.
Strong internet user analytics for
Gran financial sectors
06/12 -
Data telecommunications and
electronic commerce.
Daily deal aggregator website for
more than 50 cities among
Argentina, Brazil. 09/11 -
Spain, Mexico, Colombia, Chile
and Peru.
Mobile Video Games 06/12 -
Research, development and
production of medical diagnosis
equipment for 03/11 -
neurology, neurophysiology and
cardiology
Platform of integrated products
and services targeted at the 01/08 -
banking industry.
1) Estimated according to EVCA methodology 13

14. Hicks Muse
Company Description Outcome Lessons Learnt
Amtec, now Neoris.
Sold for 30MM Great founder
IT consulting
Diluted before
Internet based travel Great founder’s team, but
success. Now
agency adoption took time
@Sequoia 1B
Recycled into La Great founder’s team, but
Wine club
Nacion adoption took time
Software
Very professional, but lack
development and Surviving
of commitment and passion
service company
Too early for cloud
Cloud back up Surviving
computing
Group buying turned
Comunia into Cuponica, now Recycle Too early
Sonico
Great founders team. Lack
Advertisement
Advertium market place
Closed of commitment of strategic
partner
Electronic commerce
Palmsite market place
Closed Wrong founder
Mercado Libre was a direct investment of HMTF Partners
14

15. Table of Contents
• The Latin American opportunity
• Our experience in VC Investing
• Going forward
‒ New Fund
‒ Team
• Opportunities for MBAs
• Annex
15

16. The Strategy of the Fund is to invest in the best entreprenuerial
teams in LA which are able to escalate oportunities globally
EMVC1 Investment Strategy
Focus The Approach
Stages Team, Scalability and Hands-On
 Seed and Early stage investments Participation
 US$ 500K to 7/10 MM per target  Best Teams
 US$ 10/20 MM for selected follow ons  Founders Market Fit
Business Plays  Scalability
 Disruptive models (50%)  Best Practices
 Copy cats (50%)  World and local network
Industries/ Businesses  Hands-on Investment
 Internet and TME1  Seats in Boards of Directors by Partners
and Principals
 Biotechnology/ Nanotechnology
 GP that combines businessmen,
 CleanTech
entrepreneurs and hands-on consulting
 Software applications (SAS) capabilities
 Health Equipment and Services  Formal Investment Process
 Accelerator (?)  1% GP commitment
1)TME = Telecommunications, Media and Entertainment 16

17. We have the capability to execute a VC strategy in Latin America
THE EMVC TEAM
networked with global key innovation hubs and financial markets
London
Silicon New York
Valley Tel Aviv
Bogotá Mumbai
Medellin (Pune)
Minas Gerais
Lima Rio de Janeiro
Sao Paulo
Santiago
de Chile Buenos
Aires
Company & Investment Locations
Technology Hubs
Financial Hubs
17

18. Investment target is US$500K to 7/10US$MM to scale up and
globalize entrepreneurial companies with high potential
$ Attractive Market
Opportunities
Global Niches
Market valuation
of $20/50 MM
Series B targeting
$500MM
US$500K to Growth
US$ 7/10MM
Investment Rounds to:
 Complete the development of
prototypes and gain client access.
Capital  Product development
Need  Scale to reach global and regional
markets.
 Recruiting of key talent for
management team.
 Investment readiness for Series B
rounds
1 2 3 4 5 6 7 8 years
Source: New Fund V 18

19. Table of Contents
• The Latin American opportunity
• Our experience in VC Investing
• Going forward
‒ New Fund
‒ Team
• Opportunities for MBAs
• Annex
19

20. EMVC1’s Team plays a role as a smart and hands on investor in
key value added functions
 Leaded by a team with
experience in the
development of global
 Brazil, Chile, USA Silicon Strategy strategies and new business
Valley , Europe, and India models
 Access to follow up
investment funds
 Regional and Global
entrepreneurial
development
Expansion Contacts services and VC
Network
• Financial, Legal,
Adding Tax, IP
Value • Clients
• Key Professional
and Board
Recruiting
 Access to local and • Investment
international syndication
mentor experts
Technology Synergy
 Maximization of
portfolio synergies and
complementation
Source: New Fund 20

21. The Team will cover the geographies, industries and functions
with 1 Managing Partner, 2 Principals and 4 Senior Associates
Investors
Lisandro Bril Advisory Council & Angel
Investors Network
Founder, Managing
• Brazil, Colombia, Chile, Argentina.
Partner and Key Man Silicon Valley. Israel,
• Internet, Biotech, Nanotech, Clean
Brazil, USA Tech, Health
Geography Industry Function
Bio & Control &
Finance
Colombia Argentina Human Investor
Brazil Internet Nano CleanTech and
Peru Chile Resources Relations
Tech Legal
Support
LB A2C 1
Strategic A2C 1 AT NK A2C 1 LB
Managing Management IF
Alliance LB GF GCH SM LB2
Partner Affiliate
LB2 JF
Senior Senior
Associate Associate
TBC SM & DH
Associate Associate
1) A2C is a Management Affiliate and Venture Partner, Management Consulting Firm (www.a2cadvisors.com)
21

22. Table of Contents
• The Latin American opportunity
• Our experience in VC Investing
• Going forward
‒ New Fund
‒ Team
• Opportunities for MBAs
• Annex
22

23. This is the right place to be…?
Opportunities Functions
• Geographies: Emerging Markets
• Strategy and Business Model
• Brazil
compass. Customer development
• Colombia
approach.
• Mexico
• Chile • Finance
• Peru • Valuation
• Argentina ? • Venture Finance
• Industries • Tax and Legal
• Equity Research
• Internet
• TME • Human Resources
• Biotechnology • Start up organizational development
(Luana Bichuetti – HBR article)
• Nanotechnology
• Talent Management:
• Cleantech
recruiting, compensation, retention
• Health
• Education
• HR and Knowledge Management
Processes
• Careers:
• Hackatons
• Entrepreneurial
• Marketing: Product Managers for Digital
• Venture Capital Storefronts
• Private Equity
• Lean Start Up Paradigm
• Corporate
23

24. GPs and LPs operating in Latin America
GPs Latam LPs Latam
NAFINSA
Wayra/ Amerigo/ Telefónica - FINEP Canadian LPs
Bancoldex
PanLatam
Silicon Valley Bank
Monashees-Br
Marc Horsley Bridge
Redpoint – Br Andreessen
Adam Street
Kaszek - PanLatam
CORFO Harbour Vest
Promotora -Co
Hamilton Lane
Alta Ventures -Mx
57 Stars
Equtias - Ch
Carnegie Corporation
Austral- Ch Accelerators Latam
University of Texas
Aurus- Ch 21212 – Br Endownemt
CAP Ventures-Ar  Ángeles – MX Grove Street (?)
Ax Ventures / Pymar Fund- Nextp – Ar, Ch, Co Altius (?)
Ar
Quasar - PanLatam University of Virginia
24

25. Work session
25

26. Email: lbril@axventures.com
Twitter: @lisandrobril
Linkedin: http://ar.linkedin.com/pub/lisandro-bril/7/709/17ª
Blog: lisandrobril.wordpress.com
26

27. Table of Contents
• The Latin American opportunity
• Our experience in VC Investing
• Going forward
‒ New Fund
‒ Team
• Opportunities for MBAs
• Annex
27