8/13/2019 011 Startup APEC Luis Torres (1)

1/11

Investing in Peruvian Startups

Luis Torres Mariscal

Altra Investments, Mentor Capitalist

8/13/2019 011 Startup APEC Luis Torres (1)

2/11

BackgroundAltra Investments, Mentor Capitalist (2 yrs)

Microsoft Corporation (10 yrs)

Business Consulting & Technology Services (6 yrs)LC&F Systems Development (2 yrs)

UNMSM, Doctorate Honoris Causa

Harvard University, MBA

Universidad de Lima, BSc in Systems Engineering

8/13/2019 011 Startup APEC Luis Torres (1)

3/11

Global Competiveness IndexPeru remains stable at 61 place following a strongly

positive trend that led the country up in the rankings

more than 20 places in recent years. The results suggesta consolidation of the competitiveness profile of the

country and a certain exhaustion of the sources of

competitiveness gains of the past years.

In addition, poor educational quality (134) has

generated a deep skills gap in the economy. Coupled

with a low capacity to innovate (106) caused by limitedR&D investment (124) and a weak scientific research

system (119), this hinders Perus capacity to diversify its

economy and move up toward new, more knowledge-

rich activities.

8/13/2019 011 Startup APEC Luis Torres (1)

4/11

Networked Readiness IndexDespite going up three places in the rankings to 103

place, Peru continues to lag significantly in terms of

leveraging ICTs to modernize its national economy. Evenwith a government push to increase the number of

online services and a reduction in the cost of accessing

broadband Internet (107), insufficient progress in

developing the national ICT infrastructure (86) has

resulted in the relative stagnation of ICT uptake,

notably in terms of the number of Internet users (77)

and households with computers (82) or an Internetconnection (83).

8/13/2019 011 Startup APEC Luis Torres (1)

5/11

Networked Readiness IndexMoreover, notwithstanding its relatively pro-business

environment (57),

1. weaknesses in the political and regulatory

environment (121),

2. the poor quality of its educational system (132),

3. and its low capacity to innovate (103)

are factors that are hampering the countrys ability to

obtain greater economic impacts and allow the nationaleconomy to transition toward higher-value-added

activities.

8/13/2019 011 Startup APEC Luis Torres (1)

6/11

Entrepreneurial Ecosystem People, Diversity, Values

Education

Human CapitalRole Models

Risk Tolerance Rewarded

CultureEarly CustomersRisk Capital

Working conditionsInfrastructure: Hard and SoftClustering & Networking

Public Policy

CirculationofPeople

Circulationof

Capital

CirculationofIdeas

8/13/2019 011 Startup APEC Luis Torres (1)

7/11

Peruvian Entrepreneurs People

Have passion, ambition, perseverance

Have no fear to fail, are willing to learn and adapt

Ask good questions, know their weaknesses

Opportunity

Differentiate ideas vs. business opportunities

Know their customers and competitorsLeverage on new business models and technologies

8/13/2019 011 Startup APEC Luis Torres (1)

8/11

Resources, Beyond Capital Strategy

Targeting, value proposition, monetization

ManagementBudgeting, finance and administration, legal

NetworkingCustomer acquisition, distribution channels

TalentHiring, developing and retaining top talent

CapitalSeed and venture capital, government funds

8/13/2019 011 Startup APEC Luis Torres (1)

9/11

Mentor CapitalistMentor capitalists are experienced executives and

entrepreneurs that serve as hands-on advisers to

startups that need help with business development,recruiting talent and raising capital.

Some of them make seed investments that help keep

things running while they fine tune the business model

with the founders.

8/13/2019 011 Startup APEC Luis Torres (1)

10/11

Peruvian Startups$920K raised for 4 tech startups, $1M+ in 2013

E-nteractiva: cloud-based infrastructure services$250K+ in 2013, $245K raised

Blitz: social media marketing platform$50K+ in 2013, $275K raised

Evolta: cloud-based CRM for real estate industry

$450K+ in 2013, $100K raised

LaEncontre.com: online real estate portal$250K+ in 2013, $300K raised

8/13/2019 011 Startup APEC Luis Torres (1)

11/11

Our Opportunity New generation of entrepreneurs

New generation of mentors and investors

Developing ecosystem of entrepreneurship and

innovation

Everything, without exception, is yet to be made

An country full of opportunities!