July 31, 2019 |
When Kaszek Ventures set out to raise its first fund in 2011, potential investors had confidence the venture capital firm could identify promising startups in Latin America. Less certain was whether they would make money, says Hernan Kazah, co-founder of the Buenos Aires firm. He recalls being peppered with questions. What about subsequent fund-raising? Who would invest? What kind of returns could they expect?
Kazah understood their caution. Venture capital firms investing in Latin America have had their ups and downs. It’s been especially tough to attract early-stage investors who take on big risks. Even with talented entrepreneurs, exits that generate attractive returns have been scarce.
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