Jumpstarting the Peruvian VC Ecosystem [Repost]

by Martin Aspillaga (June 23, 2018)

Last week I took part in a panel on Peruvian VC Funds under Endeavor’s Peru Investment Network. Before sitting on the panel, I was reflecting on Chris Heilvy’s words from the previous week. He had mapped Lima’s innovation ecosystem as part of a project undertaken by Techstars for Innovate Peru. And he said during his report brief that Lima was a hub at a “Foundational Level”. That means that we are at “Level 2” and that a lot has to be done in terms of talent and culture.

Before stepping into the podium, I remember dispensing with an initial thought on how far still Lima has to go to catch up with Bogota or Mexico City. Because the real underlying thought in my head was how far we have travelled. 5 years ago nothing existed. In some aspects, it feels like the very first seconds of the Big Bang.

Being at a “Foundational Level” implies that most critical underlying assets and core processes are in place and that the community needs to continue developing those assets and processes and adding the few missing elements.

One of those missing elements is a vibrant and complete Venture Capital Landscape. In terms of funding and expertise, Incubators, Accelerators, Angel investors and Seed Funds have been building the first steps of the funding ladder. But Peruvian entrepreneurs who want to scale regionally and Latin American or Global entrepreneurs entering the Andean Region will require more steps in that ladder.

It’s not only about capital, which is abundant in Latin America and globally. It’s about adequate capital and adequate expertise for the post-seed stage and Series A and B rounds of promising enterprises. The Lima hub and its interconnected hubs and spokes require more Venture Capitalists with relevant market experience and access to patient capital so that they can add the missing links to the startup funding dilemma.

And so I was very happy to step into the panel and sit down and share the stage with others who are also inspired and busy helping to build the Venture Capital infrastructure of Peru. After having shared investment theses and goals with them and after having stared at a full audience of entrepreneurs, Angels and Institutionals, I’m sure that the timing is right for jumpstarting the Peruvian Venture Capital industry.