LatAm fintechs with international growth plans are highly attractive investment opportunities, say venture capital executives.
QED Investors, an equity fund specializing in early-stage, disruptive models, considers whether the business has expansion opportunities from the start – and especially if it has a “clear strategy, with the potential to continue expanding long term,” Lauren Connolley Morton, a partner at the firm, said at the iupana event. Similarly, many of the companies in which IGNIA Partners invests are born with global mindsets and “an intrinsic value in other markets,” said Fabrice Serfati, managing director. The explosion of fintechs – as seen in the growth of last-mile services, challenger banks, consumer and business lending startups as well as B2B models – far from crowding the market, is attracting new capital, giving the ecosystem a fresh boost, said Serfati. “All of this makes it easier for global investors to enter the region because they are seeing that these business models are indeed getting traction and are working.”