A feature of startups is that since their early years, expansion has been a priority. Javier Salinas, Director of Emprende UP, explains that the Pacific Alliance “is always the first point to look at”.
However, he says, entrepreneurs are broadening the picture when it comes to forming a holding company.
Where will they run their headquarters? “Delaware (US) is the first state that comes to mind. It is where startups want.”
He explains in detail that in this way it is possible to attract American funds that will finally allow for larger investments in Latin America. “This is becoming more and more common,” he says.
Another advantage is that Delaware is known for being “pro-business”. Thus, regulation allows for “quick, simple and complex processes that accommodate what the startup requires.”
Luis Narro, partner at investment fund Alaya Capital, agrees and points out that in the past five years, Delaware has done very well for the ecosystem.
Narro notes that “since the capital raising is done from the parent company, this gives international fund investors a great deal of safety.” In addition, he reveals that the jurisdiction of the Cayman Islands (British territory) is gaining momentum.
In Europe, says Salinas, an interesting place is also being created for more technological ideas such as fintech. This is Liechtenstein (located between Switzerland and Austria).
Salinas details that this year the ecosystem started dynamically despite the situation. Remember that in the past year, entrepreneurship optimism has fallen from 95% to 85%. “It was worrying, but the landscape has really changed,” he says.
He confirms that from Emprende UP, as of February, they had two investment rounds open to seed capital (amount up to $500 USD).
For his part, Naro stresses that investors are still somewhat cautious, but without stopping the bets.
“At Alaya Capital, we operate an angel investment network to fund early-stage projects. We’ve already made three investments so far this year.”
- Ability. Preaut, KashIO, Smart Doctor, Life, OlaClick, Postrelado, and Holy Fruit all have a capital raising profile.
- attractive. The region’s markets most eager to expand are Mexico and Colombia.
- sitter. Emprende UP implements up to 10 investment rounds per year.
- expertise. The Peruvian company B89 has a holding company in Delaware.
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