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Latin America holds the title for the highest level of urbanization globally. As the 21st century began, more than 75% of its residents lived in urban areas, a figure that is projected to approach 85% by the year 2030.

As compact living trends increase in the region, the need for flexible and adaptable storage solutions will continue to rise.

Let's dive in.

Imagine this

• You’ve recently begun remodeling your home and have temporarily moved to a smaller apartment until the work is completed.

• Over the years, many belongings have accumulated in your house, and not everything can fit in the temporary apartment.

• You recognize the need to rent storage space to manage the excess items.

• Given your busy work schedule, dedicating time to pack all the extra belongings isn’t your highest priority.

• You discover Kanuby, a service that offers to pick up, pack, and store all your belongings, charging you only for the actual space your items occupy.

Explain it like I'm five

Today’s self-storage setups make people rent more space than they need and deal with the hassle of packing, shipping, and storing stuff themselves. Plus, if they want something back, they have to go get it.

Kanuby is a tailored on-demand storage business.

• They take care of picking up, storing, and returning your belongings.

• Customers only pay for the space they use.

• They provide an online photographic inventory of all of your belongings, where you can easily view stored items and select them to be returned.

• The whole management and process of the storage space is done through their website.

According to Mordor Intelligence, the self-storage market is projected to reach a value of $115.62 billion dollars by 2025. By leveraging technology, Kanuby delivers convenient, customized storage solutions tailored to their clients’ needs.

The ABCs

• Industries: Self-Storage, Logistics, Proptech

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2023

• Team Size: 4

• Raised: Bootstrapped

• Business Model: B2C & B2B

Background check

What we like:

• Numbers: Founders shared with Runway that they’d broken even this month. Additionally, they saw a 50% increase in new clients compared to last month and reported an average month-over-month sales growth of 60%.

• Demand: As Mexican cities grow taller with more apartment buildings, people are finding themselves in smaller living spaces. This change is boosting the need for storage services as people look for ways to keep their extra items outside their compact homes.

• Service: Kanuby’s service is designed with a customer-centric approach, offering a comprehensive solution that greatly simplifies the storage process for individuals and businesses, unlike traditional storage options, which can be costly and require the client to handle most of the work.

• Security: To build and maintain trust with their customers, Kanuby has implemented robust security protocols at their storage facilities. This includes round-the-clock surveillance by security personnel. Additionally, they prioritize the cleanliness and safety of stored items by regularly cleaning and disinfecting all belongings.

Roadblocks:

• Competition: Kanuby’s business model, while innovative, is not unique in the region, as several competitors already offer similar services. In addition to these direct competitors, Kanuby also faces competition from traditional self-storage options, which are well-understood and familiar to potential customers.

• Operation: The costs of picking up, packing, and storing items, especially in a customer-centric model that prioritizes convenience, can be high. If Kanuby underestimates these costs or fails to scale operations efficiently, they could face financial difficulties affecting growth or leading to operational failures.

• Trust: Maintaining a high level of service quality across all stages of the customer experience is crucial. Any failure in ensuring the safety, security, and accessibility of stored items can lead to customer dissatisfaction.

• Education: Given that Kanuby is introducing an innovative model to the storage solutions market, a significant barrier could be the potential customers’ lack of understanding of the service. The concept of a service that not only stores but also picks up and packs belongings, charging only for the used space, may be unfamiliar to many.

The Architects

• Diego Elizondo, Co-Founder.

• Fabrizio Calvi, Co-Founder.

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Headlines Corner

• Skyone, a Brazilian cloud-based productivity startup, raised $12 million dollars (Latamlist).

• Pulsar, a startup that performs AI-driven manufacturing operations analysis, raised $8 million dollars in funding (Crunchbase).

• YoFio, a Mexican fintech specializing in financial and credit services for small businesses, secured $10 million dollars in a mix of debt and equity (MBN).

• Neowrk, a Brazilian workplace management startup, raised $2 million dollars in funding (Latamlist).

Founders Bookmarks

The best tools and resources we came across this week.

• How to use second-order thinking to outperform.

• Learn about the VC and startup ecosystem in LatAm through X.

• Facebook’s famous “handbook” is almost impossible to find. This blog is the closest we can get to it.

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Mexico is the 8th largest textile manufacturer in the world, producing around $13 billion dollars and exporting approximately $7 billion dollars annually. This includes apparel, industrial textiles, and home decor.

Despite the growing demand, the industry is losing billions worldwide. According to McKinsey, 30% of apparel inventory is not sold, while 40% of sales end up being returned.

Let's dive in.

Imagine this

• You just started working in the purchasing department at a fashion brand that outsources all of its production.

• A few weeks after placing your first order, the lead times you were given were met, and there has yet to be an update on the status of your order.

• Checking with one of the factories, they tell you there was a problem with the electrical supply and that the production time has been pushed to 2 weeks.

• This delay led to a stockout, causing the brand to lose money on potential sales.

Explain it like I'm five

While many fashion brands depend on real-time data to see their orders and plan their stock, there still needs to be more visibility in each of the stages of production.

Greenpeace published that over 10 million tons of clothes are thrown away or burned globally each year. With more information from each part of the manufacturing process, waste and efficiency should allow a smoother and more sustainable supply chain.

• With Maqui, brands can access real-time data and reports from their factories.

• Factories can establish better communication with clients, reducing the time it takes to follow up on orders and updating brands on their lead times.

• Both factories and brands can plan production better, reducing waste and increasing efficiency.

Maqui offers a platform that uses real-time data and analytics to streamline outsourced textile production.

The ABCs

• Industries: Textile, Software

• Headquarters: Mexico City

• Year Operations Started: 2023

• Team Size: 28

• Raised: $1.5 million dollars

• Investors: Marathon Ventures, Nido Ventures, Integra Group, Kuiper, Noa Capital

• Business Model: Subscription as a Service (Saas) for textile companies.

Background check

What we like:

• Network Effects: Maqui's founder told Runway that most of the factories they work with supply multiple brands, facilitating the discovery of potential clients and adding them to their network.

• Communication: Implementing their platform reduces the need for manual updates and emails that factories must send to brands. Real-time information about production status can allow brands to improve their efficiency and decisions.

• Growth: Since its launch, they have tracked over 540,000 garments. They operate in Mexico and Colombia, with plans to expand to other countries once they have established a strong presence in these markets.

• Market: They are currently focused on the apparel market but have found that most apparel factories also produce textile products for multiple other segments, including home decor, automobiles, and industrial textiles.

• Access: Maqui is capturing the different textile factories in Latin America, which they can convert as a database since it will enable them to offer new brands access to these factories and provide additional supplier options for current brands.

Roadblocks:

• Implementation: Founders admitted that the implementation process could be faster, but it hasn’t been due to a lack of resources. They face challenges in integrating companies with their existing software and teaching factories and brands how to utilize their platform effectively.

• Manual: Most of the information has to be added manually for brands to gain visibility in the manufacturing process, which can limit efficiency and scalability.

• Brands: Maqui needs to rapidly demonstrate its platform’s value and return on investment (ROI) to potential brand clients to ensure adoption and success.

The Architects

• Sebastián Obregón, Co-Founder & CEO.

• Andrés Londoño, Co-Founder & CGO.

• Melina Cruz, Co-Founder & CSO.

• Enrique Osorio, Co-Founder & COO.

Request intro with founders by sending an email to gabriel@readrunway.com

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Headlines Corner

• Simetrik, a Colombian payment infrastructure startup, raised $55 million dollars in funding (Reuters).

• BemAgro, a Brazilian Agtech startup, raised $2 million dollars in funding (Latamlist).

• Reddit filed for an IPO, disclosing ~21% revenue growth and a $91 million dollars net loss in 2023 (NPR).

• Crisp, a platform providing brands and distributors with store and shelf-level data, raised $50 million dollars in funding (Businesswire).

Founders Bookmarks

The best tools and resources we came across this week.

• 10 lessons from the best venture investors.

• Jeff Bezos on two different kinds of failures.

• Top Venture Capital firms in Latin America.

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Athletes, celebrities, and micro-influencers have profoundly impacted the commercial landscape, leveraging their influence across social media channels.

The ability to digitally connect with large audiences has revolutionized marketing strategies, enabling brands and restaurants to engage with potential consumers directly and personally.

Let's dive in.

Imagine this

• You enjoy spending weekends dining out and having drinks with friends.

• After checking your expenses, you see that this habit is having an impact on your savings.

• You seek ways to reduce your spending without cutting down on your outings.

• After talking with friends, you hear about an app that offers discounts in exchange for posting about the experience on social media.

Explain it like I'm five

The Covid-19 pandemic fueled influencer marketing. In 2020, the market was valued at $9.1 billion dollars and last year, it stood at $21.1 billion dollars.

Over 46 million people use Instagram in Mexico—about 30% of the country’s population. With businesses fighting for attention, companies are leveraging the power of micro-influencers and user-generated content to help brands and restaurants succeed. 

Clix is a discount marketplace for micro-influencers focused on helping brands, restaurants, fitness studios, products, and services grow their local presence.

• In exchange for discounts, Clix connects brands with micro-influencers to promote their experiences or products on social media.

• Brands benefit from organic shares, mentions, and mouth-to-mouth recommendations.

• Micro-influencers benefit from discounts and promotions for uploading an Instagram story or post of the experience.

The ABC

• Industries: Adtech, Social Media

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2020

• Team Size: 14

• Raised: Bootstrapped

• Business Model: Package-based (Companies buy packages, which include visits and social media posts of their restaurant)

Background check

What we like:

• Traction: Clix has helped more than 250 brands across Monterrey and Guadalajara, generating around 50 million social media impressions and over 16,000 users. They recently opened their doors to brands and influencers in Mexico City, which founders expect to be their biggest market.

• Advertising: Approximately 60% of businesses’ marketing budgets are now spent on digital marketing, while 40% are spent on traditional marketing, and 2/3 of marketers plan to increase their influencer budget.

• Value: The cost of advertising on social media platforms like Instagram is constantly increasing, leading brands to shift their strategies towards more organic content, which has shown to have a bigger impact. Nano and micro-influencers generate approximately 60% more engagement than macro-influencers.

• App: Clix released their app last week, which founders believe will improve their user experience. They plan to expand nationally after solidifying Mexico’s three major cities (Monterrey, Guadalajara, and Mexico City).

Roadblocks:

• Users: The founders told Whitepaper that when Clix started, they thought onboarding clients (restaurants, establishments, brands, etc) would be the tougher target market, but in reality, onboarding qualified users (micro-influencers) to their platform has been the bigger challenge.

• Cut-offs: Currently, Clix's model heavily relies on restaurants offering discounts exclusively to their users as a means to attract customers. However, what if restaurants and brands decided to sidestep Clix altogether and instead offer discounts directly to customers in exchange for social media posts?

• Marketing: The advertising landscape changes quickly. Their model has been proven to work, but as time passes, they have to adapt to new trends and consumer behaviors to remain effective.

The Architects

• Carlos A. Garza, CEO & Co-Founder.

• Paulina Rodriguez, CCO & Co-Founder.

• Andres Quijano, CTO & Co-Founder.

Request intro with founders by sending an email to gabriel@readrunway.com

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Headlines Corner

• Prometeo, a Uruguayan startup focused on bringing open banking to Latin America, raised $13 million dollars in funding (Techcrunch).

• Techreo, a Mexican fintech startup that offers financial services for the underbanked in Latin America, secured $3.4 million dollars in funding (Latamlist).

• Cogtive, a Brazilian startup that uses IoT to improve manufacturing processes secured $2 million dollars in funding (Crunchbase).

• Plataform, a Colombian fintech offering financing, secured $3 million dollars in funding (Contxto).

Founders Bookmarks

The best tools and resources we came across this week.

• How to design a culture that’s right for your company.

• Psychology of Human Misjudgment speech by Charlie Munger.

• Understand the importance of network effects and how to apply them in your business.

Building in Latam? Send us your pitch deck for the opportunity to be featured in Runway.

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Renting a car involves a time-consuming process, high costs, and a lack of transparent pricing, making the experience unpleasant for customers.

The well-established players that dominate the market have been slow to innovate and improve the car renting experience.

Let's dive in.

Imagine this

• You are a tourist traveling to a small Mexican town for a short vacation.

• As you pick up your bag, you head directly to the rental car kiosks, where a long line awaits.

• When you arrive at the counter, you find out that no cars are left.

• An hour later and still without a rental car, you ask other passing passengers about alternatives.

• They quickly recommend a platform where you can rent cars from local hosts.

Explain it like I'm five

The peer-to-peer car-sharing market was valued at around $2.2 billion dollars globally in 2023 and is expected to reach $6.9 billion dollars by 2030. This growth represents an annual compound growth rate of 17.7% between 2023 and 2030.

In Mexico, several companies are working toward addressing this issue. Beepy, Drivana, and Balety have started offering a car-sharing platform as an alternative to traditional rental companies in Mexico.

Drivana is a peer-to-peer car-sharing marketplace where customers can book vehicles from a community of local hosts.

• Users can rent a car on the platform, and the host delivers it to the chosen address and then picks it up where the user leaves it.

• Users who sign up have to verify their identity and go through a KYC process.

• They encourage people with unused cars to earn an extra income.

North America (US and Canada) holds the largest market share of the peer-to-peer car-sharing market at about 35%, Europe at 25%, Asia at 20%, and Latin America at approximately 10%.

The ABCs

• Industries: Transportation, Car Sharing, Rentals

• Headquarters: Mexico City

• Year Operations Started: 2023

• Team Size: 9

• Raised: Undisclosed

• Investors: Encontrack & Chowdhury

• Business Model: Commission based

Background check

What we like:

• Cheaper: According to the founders, the daily rental price for a Volkswagen Jetta on Drivana is $948 Mexican pesos. Comparing it with Hertz, which holds the largest market share, their everyday rental price goes up about 183%. Beepy, another competitor offering the same services as Drivana, has it priced 58% higher. 

• Growth: Since launching in March of last year, the founders claim to have over 10,000 users and a fleet of 500 cars, maintaining an average of 30% of the first customers, showing a growing demand for their product offering.

• Convenience: Paperwork at traditional car rentals can sometimes extend to 2 hours to secure a vehicle. Drivana sets itself apart by offering a user-centric solution—providing the option for customers to have their rental car delivered directly to their chosen address or to be picked up.

• Costs: Their business model has already been tested in other regions and proves to be more cost-effective compared to owning a complete fleet of cars. Owning a fleet of cars comes with high expenses like car maintenance and insurance. This allows them to offer lower rental rates to their users.

Roadblocks:

• Liability: In August 2022, it was reported that Turo and other peer-to-peer car rental companies were found to have been used by criminals for human trafficking. If this problem were to happen to Drivana, it would severely damage its reputation and liability claims. 

• Experience: The company does not conduct manual inspections of rental cars in their marketplace, which can make it challenging to manage or address issues that customers might encounter with their rented vehicles.

• Region: We don’t see this concept working in certain parts of Mexico, such as Monterrey, where the city is not built for walking. People rely on cars to travel from Point A to B. While most individuals who utilize public transportation do so because they do not own a car, those who do own one typically have the means and preference to use it.

• Marketplace: Drivana is facing a shortage of cars to match the increasing demand from renters. They need to acquire users rapidly since digital marketplaces rely on volume.

The Architects

• Edson Arteaga, Founder & CEO.

• Carlos Ramos, Founder & CTO.

Request intro with founders by sending an email to gabriel@readrunway.com

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Headlines Corner

• Traive, a Brazilian agriculture fintech startup, secured $20 million dollars for expansion (LatamList).

• Coba, an American fintech startup simplifying cross-border financial services in LatAm, raised $2.2 million dollars in funding (Coba).

• Ezra, an American healthcare AI company, raised $21 million dollars in funding (BusinessWire).

• Daedalus, a German startup building precision-manufacturing factories powered by AI, raised $21 million dollars in funding (TechCrunch).

Founders Bookmarks

The best tools and resources we came across this week — powered by Directo.

• Directo redefines the way businesses engage with their users. Using Artificial Intelligence, they develop mass communication platforms to reach and interact with customers: WhatsApp, SMS, ChatBot, and Voice Blaster.

• Check our curated list of the VC ecosystem in LatAm.

• How to build a strong brand for your business.

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In 2022, Mexico's construction industry decelerated by 15%. However, this year, it’s anticipated to recover fully, with construction companies benefitting from outside investment in the residential and industrial sectors.

Let's dive in.

Imagine this

• You work as a purchasing agent at a construction company.

• Every day, you check in with dozens of suppliers for the latest quotes and the status of your orders.

• Scarcity of materials is common. You have to check with several distributors to see availability and pricing.

• Often, you need to find new suppliers to meet your company’s demands.

• With the help of an online platform that has thousands of construction suppliers where you can quote, your job is much easier.

Explain it like I'm five

Sourcing materials is a significant challenge in the construction industry, stemming from limited supplier information and the difficulty of guaranteeing material quality. This lack of transparency and predictability complicates procurement, affecting project timelines and budgets.

• With Construex, suppliers can upload their full product catalog online.

• Buyers can easily quote from various suppliers in one place.

• Construex withholds payment to the supplier until they have successfully delivered the order.

According to Forbes, construction companies in Mexico have been slow to digitalize; only around 20% have adopted technology to automate processes and simplify their daily operations. With an estimated value of $185 billion dollars, there is room for entrepreneurs to digitize and simplify processes in the industry.

Construex is a B2B marketplace that connects construction businesses with materials and home decor suppliers.

Construex ABCs

• Industries: Construction, marketplace

• Headquarters: Quito, Ecuador

• Operations Started: 2019

• Team Size: 50

• Raised: $4.6 million dollars

• Investors: Zacua Ventures, Fifth Wall, ABSeed & Terracotta Ventures

• Business Model: B2B, transactions fees on orders

Background check

What we like:

• Profitable: Founders told us they achieved profitability early on. As they began to recognize the demand for their platform in neighboring countries, they understood the need for additional capital to fuel their expansion.

• Growth: Having successfully established a strong presence in Ecuador, Chile, Argentina, Bolivia, and Guatemala, Contruex is poised for further growth in Mexico, which has the largest construction market in Latin America. It already has over 150 active clients.

• Digital: Suppliers can display their full product catalog on Construex, making it easier for companies to add a digital sales channel. Their approach also reduces suppliers’ need for additional investment in digital infrastructure.

• Offering: Originally focusing on construction materials, Contruex realized that home decor suppliers were facing similar issues—leading to their inclusion on the platform. As a result, Contruex claims a network of over 74,689 suppliers in Mexico and 137,350 across Latin America.

Roadblocks:

• Markets: Every Latin American country operates business differently. One of the challenges Construex founders are facing is understanding the needs of each of their clients and suppliers and then adapting the platform to the needs of each country.

• Bypassing: Construex’s revenue is generated through transaction fees applied to orders made on their platform. Some businesses may bypass Construex and directly engage with suppliers to avoid these fees, as buyers have direct contact on orders with suppliers.

• Adoption: Even with the growing popularity of online marketplaces, convincing traditional suppliers and businesses to join in can be tough. These businesses are used to their usual way of doing things and might be hesitant to switch to an online platform. Construex also needs to reach out to both suppliers and customers to make it work.

The Architects

• Roberto Arroyo, Co-Founder & CEO.

• Nicolás Arroyo, Co-Founder & COO.

• Carolina Arroyo, Co-Founder & CSO.

• Sven Gloor, Co-Founder & CMO.

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Headlines Corner

• Hey, a Mexican neobank will be splitting from Banregio to operate independently (Expansion).

• Owner.com, a startup helping restaurants manage their online presence, raised $33 million dollars in funding (Techcrunch).

• Yume, a startup helping manufacturers turn potential food waste into money, raised $1.3 million dollars in funding (Capitalbrief).

• Kore.ai, a startup building conversational AI for enterprises, raised $150 million dollars in funding (Techcrunch).

Founders Bookmarks

The best tools and resources we came across this week.

• A framework to make better hires.

• The story of Airbnb by Paul Graham.

• Why consumer brands may grow in the next few years.

Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.

Runway´s Job Board

• Somos Foods: An authentic Mexican food company spicing things up in the US market is looking for a talented SENIOR ACCOUNTANT to join their Monterrey team. Ready to join the flavor revolution? Apply here.

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You’d think that given the campaigns advocating for a reduction in meat consumption and promotion of plant-based diets, the meat market might have suffered.

Demand, however, shows no signs of slowing. The Mexican meat industry is expected to grow annually by 5.92% from 2024 to 2028, reaching a market volume of $71.7 billion dollars.

Let's dive in.

Imagine this

• You own a livestock business.

• Over the past decade, you've built a loyal client base, maintaining strong relationships with them.

• While your profit margins are reasonable, you believe there’s room to negotiate higher prices for your cattle.

• Your current strategic goal is to break into the US market, which could significantly elevate your profits.

• To achieve this, you try a new platform that allows you to showcase your livestock to a broader audience of buyers.

Explain it like I'm five

In Mexico, the cattle industry is extensive, with about 35 million heads of cattle; it ranks as the 12th largest producer on the global stage. Over half the country harbors livestock. Yet, despite its nearly 2 million producers, most only own around 20 to 25 animals each. Therefore, the Mexican meat market is mainly controlled by just 20,000 big producers.

• By leveraging data, Fincadi’s algorithm can quickly value cattle, considering their location, quality, and optimal end customer.

• They have been offering “Finacadi Food Service” a B2B2C vertical that offers their meat products to social clubs, restaurants, and weddings.

• Fincadi is “close” to launching its direct-to-consumer products for the national market and offering a subscription-based program for quality meat delivered straight to client’s homes.

Information is very limited in this industry, from best quality meat - to top producers in the country. This allows retail stores to control the market, often leading to cattle being sold multiple times before reaching the final consumer.

Fincadi is focused on helping cattle farmers sell their livestock to businesses in Mexico and the US, promoting a healthier supply chain.

The ABCs

• Industries: Livestock, Foodservice

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2023

• Team Size: 8

• Raised: Undisclosed

• Business Model: B2B2C

Background check

What we like:

• Consumption: A report by the Mexican Meat Council revealed that meat consumption in Mexican households increased by 3.1% in 2022, reaching 9.8 million tons despite high inflation.

• Data: Capturing livestock producers’ information can become a moat for Fincadi. With a clear map of high-quality livestock producers in the country, they could leverage the data collected to offer premium products for their food service, trade, and consumer business.

• Tech: They are developing a machine learning-based facial recognition system for cows, enabling quick and accurate identification of each animal. This technology allows tracking a cow's breed, origin, and value, enhancing transparency and efficiency in livestock management.

• Farmers: The livestock business hasn’t changed much with technology. Many processes are still being done the same as four decades ago. With Finacdi, farmers can increase margins and find more verified buyers for their cattle.

Roadblocks:

• Privacy: Owners of this industry tend to keep their businesses under the radar. Fincadi has reached more than 250 livestock owners, but there are around 2 million producers in Mexico alone. Convincing owners to join their platform is one of the biggest challenges the founders are currently facing since it’s a very traditional and standardized industry. 

• Imports: Mexico still brings large quantities of meat from around the globe. Consumers in the country identify Mexican meat as lower quality than those abroad, taking the market share of local producers. The top-quality meat in Mexico gets exported to the United States, and what is known as “lower quality” stays in Mexico.

• Sustainability: While demand for meat products grows, livestock farming remains an issue among climate change activists. Fincadi must balance meeting consumer demand and addressing environmental sustainability, a challenge many in this industry must navigate carefully.

The Architects

• Alejandro Guerra, Co-Founder & CEO.

• Juan Pablo Guajardo, Co-Founder & COO.

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Headlines Corner

• 500 Global launched its fourth startup investment fund in Latin America (500Latam).

• Bioeutectics, an Argentine biotech startup specializing in developing environmentally friendly solvents, raised $2.1 million in funding (Syensqo).

• Genial Care, a Brazilian health tech specializing in services for children with Autistic Spectrum Disorder (ASD) and their families, secured $10 million dollars in funding (Latin American Reports).

• Approbe, a Colombian fintech connecting individuals seeking credit with lenders, secured $2.3 million dollars in funding (Latamlist).

Founders Bookmarks

The best tools and resources we came across this week.

• How board members set themselves apart.

• Why founders should not prioritize networking events.

• Monthly investor update template for early-stage companies.

Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.

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Mexico has one of the highest rates of childhood obesity in the world. Almost 4 million children between 4 and 10 years of age are overweight.

Most cases could be prevented if family influence and social habits were changed in the early ages of childhood.

Let's dive in.

Imagine this

• As a parent to two daughters and a son, you spend your mornings getting them out of bed and preparing them for school.

• Your go-to breakfast solution is cereal, which the kids happily enjoy in its variety of flavors.

• However, upon noticing the ingredients, you realize how much sugar your family consumes every morning.

• Concerned, you search for healthier cereal options that your kids will still love.

Explain it like I'm five

Around 96% of households in Mexico have at least one box of cereal every year. Even though there is a large variety of cereal options in supermarkets, most of the supply comes from two leading companies—Nestle and Kellogg’s— which control over 59% of the domestic market.

The problem is that most of them are unhealthy and contribute to the obesity crisis we face today. On average, your typical kid's cereal has more than 2.5 teaspoons of sugar per serving. That’s already half the total added sugar that The American Heart Association says children should have in a day.

• Groovies offers a vegan, gluten-free, quinoa-based cereal.

• 60% of their sales come from physical retail channels, while 40% are online.

• They currently offer two flavors, vanilla and chocolate, and are looking to branch into other products beyond cereal, like snacks.

Groovies stands out as a health-conscious cereal brand in the Mexican market, offering a nutritious alternative to traditional high-sugar breakfast cereals.

Groovies ABCs

• Industries: Consumer goods

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2021

• Team Size: 4

• Raised: Bootstrapped (raising seed)

• Business Model: Retail and e-commerce

Background check

What we like:

• Health-conscious: The demand for healthy food has grown over the past few years. Mexico's Norm 51—an initiative that labels goods if they’ve got unhealthy ingredients has given consumers awareness of products based on healthiness. According to Groovy's founders, more countries in Latin America are expected to adopt a similar approach to their food products. This trend would be beneficial for Groovies if they decide to expand internationally.

• Opportunity: The cereal market in Mexico is valued at approximately $1.2 billion dollars, and in Latin America, it surpasses $5.5 billion. The Mexican market is projected to grow at a compound annual growth rate of 5.31% from 2024 to 2028.

• Points of purchase: Groovies is set to make a significant leap in its physical presence by being stocked in over 188 supermarkets from 77 in 2023, including major retailers like Walmart. This shows that consumer interest keeps growing for alternative healthy cereals. 

• Future growth: Groovies plans to start sales in Guatemala in February and hopes to enter the US market. First, they want to become the go-to healthy cereal brand in Mexico before expanding to the US, which they think will happen around 2026.

Roadblocks:

• Industry: It’ll be a challenge to overcome Mexico’s cereal duopoly. Groovies is a new brand, so it is crucial for it to manage its distribution channels strategically and ensure that consumers become familiar with their products before they’re rotated to suboptimal supermarket shelf positions.

• Education: Groovies faces the challenge of shifting consumer mindset by informing them that healthier and “tasty” alternatives are available.

• Costs: Pricing is a significant factor for consumers when choosing what to eat. Healthy foods are usually pricier than unhealthy options. Demand has to continue growing for them to reach an optimal price point and margins. A 250g Groovies box costs $89 pesos making traditional cereals, like Fruity Pebbles and Trix, 40% cheaper per gram.

• Cash Flow: Most of their sales come from retail stores. A struggle working with big retail chains is that most of their clients have extended payment terms, making it tough for Groovies to manage their operations smoothly. Even though Groovies is growing each month, they need a steady cash flow to keep expanding. Help from outside investors or banks could be an interesting move for them.

The Architects

• Rodrigo Marcos, Co-Founder & Co-CEO.

• Jorge Vallarta, Co-Founder & Co-CEO.

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Headline Corner

• Mexican real estate investment trust Fibra Uno expects to relaunch an IPO for its Fibra Next unit before the end of January; its previous IPO was set to raise up to $872 million dollars (Reuters).

• Fluna, a Brazilian AI automation startup, raised $500k dollars in funding (LatamList). 

• Membion, a German wastewater recycling company, raised $5.5M in funding (Finsmes).

• Briq, a startup automating financial workflows in construction, raised $8M in funding (TechCrunch).

Founders Bookmarks

The best tools and resources we came across this week — powered by Directo.

• Directo redefines the way businesses engage with their users. Using Artificial Intelligence, they develop mass communication platforms to reach and interact with customers: WhatsApp, SMS, ChatBot, and Voice Blaster.

• Archer Aviation raised $1.1 Billion dollars. Here is the deck.

• How Amazon thinks about decision-making. 

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More than 30,000 trucks cross the Mexico and US border daily. That’s over $465 billion dollars worth of goods, making up approximately 49% of Mexico’s annual transported goods.

Let's dive in.

Imagine this

• You own a medium-sized logistics company focused on US-Mexico exports.

• In the last few years, you had to scale operations due to increased demand for the services offered by your company. 

• As clients got bigger, they started to ask for extended payment terms, which leaves you with low operating cash flow.

• Less cash means your business is now vulnerable due to all the payments that go unseen by clients —maintenance, gas, and salaries.

• In search of a solution, you attend a logistics conference, where you discover a service that helps logistics companies manage their cash flow.

Explain it like I'm five 

In the cross-border trucking industry, three key elements have significantly digitalized and transformed in recent years:

• Payments: Freight forwarders and brokers can automate the payment process instead of manually paying carriers.

• Audits: Companies can digitize their invoices, eliminating the need to keep physical paperwork and reducing mistakes.

• Invoicing: Transport companies can access credit to pay their invoices quickly.

In our interview with Jaime Tabachnik, Co-founder & CEO of Solvento, he mentioned that they’re the only company that currently digitizes these key aspects for the Mexican market.

While numerous companies like Mundi, Finkargo, and Nuvocargo provide some of these services, Solvento distinguishes itself by consolidating them into a single, integrated platform.

This approach enhances their proposition for financial solutions in Mexican logistics companies.

Solvento’s ABCs

• Industries: Logistics, fintech

• Headquarters: Mexico City

• Year Operations Started: 2021

• Team Size: 45

• Capital Raised: $10 million dollars Seed round, $50 million dollars debt (in the process of raising Series A in Q2 2024)

• Investors: Lendable, Ironspring Ventures, Zenda, Quona, Wollef, SUSA Ventures, Proeza Ventures, 9 Yards Capital, and Dynamo

• Business Model: SaaS, financing, transaction fees 

Background check

What we like:

• Management: In the trucking industry, it’s common to have extended payment terms with clients. Invoices for services provided might not get paid for up to 90 days. Payment delays create gaps between when expenses, like fuel, maintenance, and salaries, are paid and when revenue is actually received. Access to financing is crucial for many logistics companies to keep operations running.

• Traction: To date, Solvento’s founders told Whitepaper that they have allocated more than $80 million dollars in financing to over 180 clients in Mexico. They also claim that their past-due portfolio (unpaid credits) is around 2%.

• Location: The Covid-19 pandemic revealed the vulnerabilities of supply chains, leading international companies to reconsider their strategies. Mexico’s proximity to the US market has allowed it to emerge as a preferred destination for companies seeking to reduce supply chain complexity and transportation costs, potentially benefiting Solvento in the long run.

• Solutions: Solvento doesn’t rely on one client profile. Instead, it looks to diversify and target different businesses. Their target customers include businesses that hire third parties for their logistical operations, transportation companies, 3rd party logistics, and freight forwarders.

Roadblocks:

• Lack of drivers: According to the International Road Transport Union (IRU), in 2022, there was a shortage of 55,000 drivers in Mexico. This indirectly affects Solvento because they depend on their business partners to meet their logistical demands.

• Insecurity: In 2022, the authorities reported 13,199 crimes committed against truckers. AI27, a logistics company, estimates that around $300 million dollars are lost yearly due to cargo theft.

• Cyclical Market: The logistics industry experienced a significant boom during and in the aftermath of Covid-19. Following this surge, the market has gradually stabilized, leading to a noticeable decrease in the industry’s growth and activity.

• Geopolitics: Solvento depends heavily on cross-border transport between Mexico and the US. In 2024, 64 countries are heading for elections, almost half of the world’s population. A concern is if the US changes its import/export regulations, it could have a significant impact on Solvento’s business model.

The Architects

• Jaime Tabachnik, Co-founder & CEO.

• Pedro Bosch, Co-founder & CPO.

• Guillermo Bosch, Co-founder & COO.

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Together with Atomic 32:

Stressed about technology in your company? Doubts about how to prepare for the future? Don't worry, Atomic32 has your back.

Atomic32 is a software development company specializing in transforming ideas into digital solutions and modernizing companies to compete in the digital world.

Atomic32's approach is threefold: Strategy + Creativity + Technology. Whether you are looking for a tech assessment, software development, legacy modernization, tech strategy consulting, UI/UX Design, or even to create new digital businesses, Atomic32 has you covered.

With a track record of impacting over 5 million users and transforming over +20 enterprises, Atomic32 has solidified its position as an industry leader, guiding its customers through their tech journey.

Reach out to Gerardo Aranda Claussen (gerardo.aranda@atomic32.com), Atomic32's CEO, to accompany you and your team in your tech evolution to help you reach your strategic goals.

Headline Corner

• Latam startups’ venture capital funding dropped to 2018 levels (Reuters).

• Lina, a Brazilian open finance startup, secured $1.5 million dollars in funding (Latamlist).

• Agrotoken, an Argentinian tokenization infrastructure startup for agricultural commodities, secured $12.5 million dollars in funding (Yahoo).

• Artifact, the startup co-founded by the founders of Instagram, has announced that it will shut down (Techcrunch).

Founders Bookmarks

The best tools and resources we came across this week, brought to you by Directo:

• Send thousands of text messages to your customers in just seconds with SMS Directo, and interact with your users through WhatsApp Directo. All your mass communication needs with Directo.

• A reminder of how quickly “the current thing” fades away — stay focused.

• Advice for 2024 from Coinbase’s Brian Armstrong.

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To kick off Runway by Whitepaper in 2024, we revisited some of the startups we covered in the past year to share their latest developments, breakthroughs, and the challenges they face in their respective industry.

These interviews were conducted by email and have been edited for length and clarity.

Let's dive in.

Ridian makes crypto investing simple by automatically using algorithms to trade on top of established crypto exchanges. It was founded in 2021 in Mexico City, Mexico.

Updates:

• We launched our institutional Liquidity Provision & Execution Services Platform in Q3 this year. We’re officially operational in more than 4 countries in Latin America and are about to launch our first offshore operation in China next year.

• We also just closed deals with Bitso in Mexico & REAP in Hong Kong to become their primary partner and capture the institutional foreign exchange. It’s something we want to keep an eye on, given the opportunities offered by nearshoring in Mexico.

• We are starting operations next year with a Mexican bank (over $70 billion dollars in yearly trading volume) that serves most of the global companies arriving in Mexico. We already have our second client lined up: A global payments company with operations in over 7 countries.

• We’re in the process of closing a $3-4 million dollar Seed Extension, of which $2 million has already been committed. With this money, we'll be able to grow our team, consolidate our efforts in Mexico, and expand into new strategic markets.

Things we are excited about:

• The ongoing crypto rally and finally seeing real institutional adoption.

Things that concern us:

• Continued scrutiny and US regulators’ lack of education regarding crypto.

Priorities for the coming year:

• Getting over $5 million in annual revenue and raising our Series A round.

Outlook:

• Crypto will be hitting new all-time highs, with Bitcoin breaking the $100,000 dollar price mark.

• Latin America is becoming the hottest emerging market for crypto funding due to:

  • Growing crypto adoption rates in the region.

  • Heightened usability for cross-border transactions with crypto.

  • Institutional adoption in neighboring countries, like the US.

Rogelio Sada, CEO of Ridian.

WeShip is a platform that automates, tracks and manages shipments for businesses and e-commerce stores. It was founded in 2021 in Monterrey, Mexico.

Updates:

• We expect to close the year with 344% growth in net revenue.

• We achieved profitability in the first quarter of the year.

• We officially launched a second revenue stream with our new SaaS solution, WeShip Track.

Things we are excited about:

• Starting our first round of external capital investment.

Things that concern us:

• Recently, during Mexico’s equivalent to Black Friday—el Buen Fin—, the logistics sector faced significant challenges due to an unusual spike in demand. Several courier companies were forced to halt collections, close branches, and establish daily consumption limits to manage the backlog of packages. This could discourage consumers from shopping online and potentially slow market growth.

Priorities for the coming year:

• Our primary focus is to sustain the growth of our flagship product and expand our product and service offerings vertically. We plan to launch WeShip Cargo, our specialized logistics solution for LTL and FTL, and WeShip Protect, our cargo insurance solution.

Outlook:

• The challenges mentioned above reinforce our hypothesis regarding the importance of working with multiple logistics providers through a single portal. This approach allows for the diversification of volume and enhances consumer experience.

Adrian Galan, CEO of WeShip.

Delta Protect

Delta Protect is a cybersecurity startup dedicated to safeguarding businesses from cybercrimes. It was founded in 2019 in Mexico City, Mexico.

Updates:

• In partnership with Apollo, we uncovered over 25,000 vulnerabilities across various companies.

• We met our sales forecasts for a fourth consecutive year with a compound annual growth rate of 150%.

Things we are excited about:

• The growing general awareness surrounding cybersecurity threats.

• We are anticipating another successful investment round in 2024 to fuel our growth.

• Ethical hacking is gaining traction as a common practice for identifying organizational vulnerabilities.

Things that concern us:

• Cybersecurity still isn’t a top priority for many companies.

• A potential talent shortage in Latin America due to the influx of foreign companies.

• Latin America remains highly vulnerable to cybersecurity threats, with many entities not yet fully acknowledging the severity of the issue.

Priorities for the coming year:

• Embracing a product-led sales approach.

• Committing to sustained growth initiatives.

• Devoting significant attention to product development and our roadmap.

Outlook:

• The year ahead promises to be intriguing, with the Mexican elections on the horizon. However, record-breaking investments are pouring in.

• Founders are maturing and prioritizing profitability.

• Venture Capital will slowly pick up, but raising will still be difficult.

Santiago Fuentes, CEO of Delta Protect.

STRADE is a luxury sneaker marketplace. It was founded in 2022 in Monterrey, Mexico.

Updates:

• Platanus Ventures made a follow-on investment of $100,000 with our new sneaker marketplace model and added us to their acceleration program for a second time.

• We decided to do a small bridge round to finish building and reach Product-Market Fit. Angel investors Ian Lee (CEO at Examedi) and Tamara Chayo (CEO at Medu), both part of the Thiel Fellowship, also participated.

• Since we launched in August, we have grown on average at a rate of 74% month on month. Our platform reached 70,000 monthly visits last month, and we hope to get 300,000 in the next 8 months.

Things we are excited about:

• Launch of our app for sneakers buyers and sellers.

• Exhibiting at the most important Sneakers event in Latin America.

• Adding more product categories to our marketplace, like designer clothing and collectibles.

Things that concern us:

• The logistics services in Mexico are still very insecure for luxury items. We want to ally with product insurers or a parcel service to ensure suitable delivery.

• A challenge is to have protection against chargebacks from fraudulent payments. In Latin America, this is something all e-commerce businesses battle with; there is still no solution for this problem.

Priorities for the coming year:

• Our primary focus is on gross merchandise volume: The goal is to transact over $200,000 dollars monthly on the platform by May 2024.

• Growing our existing community is a priority in the coming year.

Outlook:

• We are excited because we are finding very promising unit economics, allowing us to scale.

David Estrada, CEO of Strade.

PoloPay is a POS (Point of sale) and management solution for LatAm restaurants. It was founded in 2022 in Mexico City, Mexico.

Updates:

• During our initial 8 months, we struggled to sell the menu due to the adoption of an additional system and difficulties integrating with existing point-of-sale systems.

• Afterward, we expedited plans to launch a cohesive point-of-sale system. In August, the decision was made to create PoloPOS.

• In November, we piloted with our first customer in Mexico City, for which we introduced a point-of-sale system developed in just 3 months.

• Alongside the PoloPOS launch, we received 4 times more inbound interest from potential customers in the first 2 days compared to the entire last year of the digital menu alone.

• Started December with 2 pilot locations and closed the month with 10 installed locations in Mexico City and Monterrey.

Things we are excited about:

• We aim to leverage the momentum generated and our customer pipeline for the first 3 months of 2024 to attract more clients and establishments to our platform.

• We seek to gain a deeper understanding of their issues to implement solutions by aiming to eliminate their day-to-day operational pains and enhance their ability to manage and comprehend their business.

Things that concern us:

• We need to catch up in an industry that has been stagnant in terms of innovation for over 20 years.

Priorities for the coming year:

• Continuing to understand the customer and keep execution quick.

Outlook:

• The mortality rate in the restaurant industry is very high. Around 60% of entrepreneurs close their establishments within the first year. We believe that understanding the customer and executing a different vision can support the entrepreneur and restaurateur, ultimately changing this statistic.

• We ended the year on a high note, and it’s time to keep working for the industry.

Andres Richarson, CEO of PoloPay.

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In April, we shared the first edition of Runway by Whitepaper. Since then, we have met with dozens of founders to share their vision with our audience.

As the year ends, we wanted to share some of our insights. This review includes our top startup articles, important stats, and essential resources. Look into it, save what interests you, or skim through it.

Insights

These are our top articles measured by different metrics:

• Most liked: Cometa, financial technology for private schools in Mexico.

• Most shared: Zumma, an AI-powered financial app for Latin Americans.

• Most intros: Bebida Viva, functional and healthy drinks for Mexican consumers.

• Most voted to invest in: Delta Protect, simplifying cybersecurity and compliance in LatAm.

• Most viewed: Kolonus, securing and enhancing gated neighborhoods and apartments.

Stats

Runway by Whitepaper in numbers:

• 34: LatAm startups we featured in the last few months.

• 47: Metings with visionary founders across the region.

• 115: Introductions were made possible between startup founders and potential investors.

• 473: Runway articles shared by our community.

• 26,175: Words written between articles.

• 1,426,453: Views received in our articles through email and the web.

Founders bookmarks

Every week, we share some of the best resources we come across.

Here are the 10 most clicked resources:

• The 6 different kinds of wealth.

• 10 tricks to make you a better storyteller.

• How to make decisions like a poker player.

• 12 psychology pricing tips to help you sell more.

• A template to help you build a 1-page business plan.

• Marc Randolph on knowing why your business failed.

• Peter Thiel on the best idea he had for managing people.

• Here is a curated list of the best tools for every function in your startup.

• Brett Adcock shared his crisis playbook during the SVB crisis back in March.

• Phil Knight’s manifesto for Nike from 1980 should be hung in every startup office.

What’s next

We're making improvements to Runway, all thanks to the valuable feedback from the Whitepaper community. Our selection process is getting an upgrade for higher quality and variety. We’ll also start sharing detailed statistics and more precise updates about the startups we feature.

Your feedback is crucial in shaping Runway. We'd love to hear more from you. If you have any thoughts, ideas, or feedback on how we can make Runway by Whitepaper even better, please don't hesitate to write us at gabriel@readrunway.com.

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The rapid growth of e-commerce in Mexico goes beyond the increase in consumer confidence in online shopping.

The development of backend infrastructure, particularly in logistics, payments, and operations, has contributed to the region's broader adoption of e-commerce businesses.

Imagine this

• You launched an e-commerce business selling unique gift boxes, which quickly gained traction.

• Handling logistics becomes more challenging as orders increase, making it harder to focus on digital marketing and business growth.

• Realizing the need for help, you seek a logistics partner to streamline operations and ensure timely deliveries.

• A friend in the industry recommends Buho Logistics, known for helping e-commerce businesses of various sizes scale efficiently and handle shipping complexities.

Explain it like I'm five

Buho Logistics is a fulfillment company for e-commerce businesses.

• Fulfillment: They offer storing, packing, inventory management, and shipping orders to customers.

• Print-on-demand: Clients can print custom packaging, flyers, and poster designs for their products without stock.

• Integrations: Buho can integrate multiple shipping carriers and the most popular e-commerce platforms and marketplaces.

Founders aim to simplify the growth of e-commerce businesses by providing logistics and operation support.

The ABCs

• Industries: Logistics, e-commerce, delivery

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2017

• Raised: Bootstrapped

• Investors: Family and friends

• Business Model: Packaging handling and storage fees

Other players:

• Emissary

• Melon

• Envia.com

Background check

What we like:

• Offering: Buho has multiple vertically aligned businesses that complement each other, making it a one-stop shop for their clients. They have Buho Logistics, a one-stop-shop order fulfillment service. EcomPack, where they design shipping supplies for their customers, and Buho Media, where they provide visual solutions to communicate their client's products or marketing campaigns.

• Technology: According to the founders, they have been constantly investing in developing state-of-the-art technology for their clients; approximately 33% of their workforce are developers, prioritizing having a technological advantage over their competitors.

• Demand: Mexico is emerging as a critical player in the global e-commerce landscape, ranking among the top five countries for e-commerce growth. Initially, Buho focused its services on small and medium-sized businesses, but in recent years, they have attracted the attention of local and international enterprise companies.

• PSP (Print Service provider): A difference between Buho and other players in the market is that they offer advanced digital printing services uniquely tailored to meet clients’ needs across multiple sectors, enhancing branding and customer experiences.

Roadblocks:

• Crowded: The growth of e-commerce in the region has increased the amount of logistics players. Ultimately, the businesses with more volume have shipping cost benefits for clients due to their size.

• Scaleability: Fulfillment providers have limited storage space in their warehouses. To bring more clients on board, they need to expand their current warehouses or open new locations, and with the surge of near-shoring in the country, it is becoming expensive.

• Operation: Handling fulfillment for various clients is complex. They must be very organized and efficient, ensuring every client's inventory is tracked and managed correctly.

The Architects

• Samuel Elizondo, Co-Founder. Previously @ Synthetic Genomics.

• José Gerardo Elizondo, Co-Founder. Previously @ Helicon.

• Jaime Torres, Co-Founder. Previously @ Grupo Reforma.

• Juan Carlos Torres, Co-Founder. Previously @ Medio Pliego.

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Headlines Corner

• Letrus, a Brazilian ed-tech startup, raised US $7.4M in founding (Startupi).

• Brinta, a Uruguayan startup focused on streamlining business accounting processes, successfully secured US $5M in funding (Forbes).

• Construex, an Ecuadorian SaaS marketplace for the construction industry, raised US $4.6M in funding (Techcrunch).

• Venture Capital investments in Latin America have remained constant in the last five quarters (LAVCA).

Founders Bookmarks

The best tools and resources we came across this week.

• Three reasons startups don’t find product-market fit.

• Charlie Munger’s impactful ideas for a life well lived.

• How the founder of Everalane built a fashion brand centered on transparency.

Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.

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In the past two centuries, humanity has achieved incredible scientific and technological progress, from breakthroughs in medicine to the exploration of space.

Although these advancements should simplify and improve our daily lives, depression and anxiety rates are higher than ever.

Let's dive in.

Think about this

• In our early years, we are taught about science, math, history, etc.

• Yet, there's a gap in our education about understanding emotions and recognizing mental health issues.

• Now more than ever, people are becoming more aware of the importance of it.

• Despite this progress, we still need the proper tools and affordable services to tackle this matter.

• This is why Yana was created—an innovative, mental health companion app.

Explain it like I'm five

Yana is a mental health support app for Spanish speakers.

• They offer a friendly AI-powered chatbot that helps members to manage their emotional well-being.

• Additionally, Yana offers daily check-ins, a mood journal, and other features designed to assist its members in their journey.

Founder aims to provide accessible and effective mental health assistance for Spanish speakers.

The ABCs

• Industries: App, Wellness, Mental Health

• Headquarters: Mexico City, Mexico

• Year Operations Started: 2017

• Team Size: 22

• Raised: $2.9M (Seed - Currently raising)

• Investors: 500 Global LATAM, Magma Partners, MGV & ALLVP

• Business Model: Free app

Other players:

• Vos

• Wysa

• Elomia

Background check

What we like:

• Traction: They have over 14 million app downloads and members in +35 countries. The founder claims it was achieved with a zero marketing investment. Yana is among the top health & fitness category app downloads in Mexico.

• Mission: The mental health crisis is one of the biggest challenges we are facing. Yana´s app does not offer a complete solution, but it provides access to mental health companionship, education & evidence-based tools to millions of Spanish-speaking humans worldwide.

• Community: Users love Yana. They have received thousands of support messages for the team and their efforts. Their strong social media engagement and word-of-mouth recognition have become significant assets for growth and awareness.

• Data: Yana is leveraging its user base, which has facilitated more than 2.2 billion conversations, to transform mental health support on a large scale. Their historic data points can identify members who need more specialized mental care, and it quickly guides them to local professional support services.

Roadblocks:

• Monetization: Yana's still figuring out how to make money. They have started to explore different strategies to monetize. Even though their mission and product are great, it will be hard to get new investors.

• Retention: People download the app to address existing issues, which ultimately helps them overcome them. However, once they tackle the problem, they uninstall the app. The team must add new features to add value, incentivizing members to remain engaged and retain the app.

• Artificial Intelligence: Yana features an AI chatbot for user interaction. However, the conversations with the chatbot often involve sensitive topics that the chatbot may not find necessary. When it comes to this type of situation, a more hands-on approach, or in other words, a human professional, is crucial for the well-being of Yana's users.

The Architects

• Andrea Campos, Founder & CEO.

• Fernando Rios, CTO. Previously @ Integromat.

• Jorge Torre, CFO. Previously @ GBM.

• Monika Fellmer, CDO, Previously @ Didi.

• Paula Helu, CCO, Previously @ Goldenvoice.

• Diego Gafias, Product, Previously @ Emma.

• Iftene Meeheni, Product, Previously @ Fritchi.

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Headlines Corner

• Webull, a New York-headquartered stock trading app, has acquired the Mexican investment platform Flink (Techcrunch).

• Zubale, a Mexican startup simplifying e-commerce operations, secured US $25M in funding (Techstartups).

• AWS announced Amazon Q, a new generative AI–powered assistant for businesses (AWS).

• DiiMO, a Salvadoran fintech company specializing in financing SMEs, raised US $1.2M in funding (Contxto).

Founders Bookmarks

The best tools and resources we came across this week.

• Directo is a leading connectivity company that provides services to large corporations and their millions of users through phone calls, SMS, and WhatsApp.

• Brett Adcock shared his crisis playbook during the SVB crisis back in March.

• These are mistakes founders should avoid while building solo.

Building in LATAM? Send us your pitch deck for the opportunity to be featured in Runway.

This is Runway by Whitepaper, a weekly newsletter covering Latin America's vibrant startups shaping tomorrow's business landscape. If you haven’t subscribed, join us to get this content directly in your inbox:

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Managing SaaS subscriptions is a complex and time-consuming task for businesses.

With an overwhelming number of software options and vendors, companies often struggle with cost inefficiencies, underuse of licenses, and operational challenges.

Let's dive in.

Imagine this

• As the end of the year comes, you give yourself some time to look at your company spending and see where you could reduce costs.

• You realize they have been increasing even though you restructured the company and had several layoffs.

• As you go deeper into the financials, you see that software subscriptions are one of the biggest expenses.

• Trying to find more information about all the software your employees use, you find that the team manages it in Excel.

• You take the responsibility to cut costs and use Kunzapp, a platform that can manage your employees’ SaaS usage and reduce costs.

Explain it like I'm five

Kunzapp is a platform for managing and monitoring companies’ SaaS usage and spending.

• They offer a marketplace with lower prices on software subscriptions.

• To identify and reduce costs, businesses can track employee software usage with real-time analytics.

Founders aim to simplify software management for companies, reducing the workload for CFOs and CTOs.

The ABCs

• Industries: Software, marketplace

• Headquarters: Santiago, Chile & Mexico City, Mexico

• Year Operations Started: 2023

• Team Size: 11

• Raised: 850K (Seed)

• Investors: Platanus Ventures, FEN Ventures, Daedalus Ventures, 99 Startups, H20 & Angel investors

• Business Model: Software as a Service (SaaS) + marketplace

Other players:

• Vertice

• Tropic

• Vendr

Background check

What we like:

• Problem: In 2022, global organizations utilized an average of 130 SaaS applications, compared to 8 in 2015. The demand for software management spending is growing quickly.

• Market: Most companies use software to manage and streamline their operations. Their ideal clients are businesses with over +100 employees, but they can work with all types of companies regardless of size or location.

• Pricing: An advantage of Kunzapp is its flexibility in pricing. Depending on the client, they can tailor their offering to match their unique profile, providing a personalized and adaptable approach.

• Savings: They help businesses renegotiate their contracts with SaaS providers, which the founders claim could lead to savings of up to 20% on current software expenses, making a very attractive offer for new clients.

Roadblocks:

• User Education: Many companies may not be aware of the need for Kunzapp offerings. Therefore, Kunzapp's primary focus is on educating potential clients. They must demonstrate the challenges companies encounter concerning their software spending and usage.

• Retention: Maintaining long-term customer relationships in a competitive market demands continual innovation, exceptional customer service, and consistent value delivery.

• In-House: While Kunzapp offers a solution, companies can easily assign employees to track software spending and usage manually. Reducing costs of adding more software platforms in their expenses.

The Architects

• Laura Del Castillo, CEO & Co-Founder, Previously @ Chipax.

• Francisco Abarca, CPO & Co-Founder, Previously @ Guou Finance.

• Alfonso Brown, CTO & Co-Founder, Previously @ Mercado Libre.

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Together with Compartamos Banco:

Compartamos Banco is the largest microfinance institution in Mexico. With 33 years of experience, it offers financial services with social value, including group and individual loans, savings, insurance, and payment channels to Mexican entrepreneurs.

It was founded with the purpose of providing opportunities for inclusion and development to people and communities in popular segments. Currently, it supports more than 2.8 million clients, 90% of whom are women who work every day to support their families.

Throughout its history, Compartamos has been a gateway to the formal financial system for more than 14 million people, fostering their dreams and addressing their financial needs with a human touch.

Learn More

Headlines Corner

• Hapi, a Peruvian startup, raised US $1.6M to democratize the stock market in LatAm (Contxto).

• CondoConta, a Brazilian fin-tech startup, raised US $14M in founding (Latamlist).

• Shein, a fast fashion retailer, partnered with Mexican fin-tech Stori to launch a co-branded credit card (Whitepaper).

• Radar Fit, a Brazilian health-tech startup, raised US $1M in founding (Crunchbase).

Founders Bookmarks

The best tools and resources we came across this week.

• Directo is revolutionizing the way businesses connect with their customers with their cutting-edge platform solutions - Whatsapp, ChatBot, SMS, Voice Blaster, and more. For more information, visit Directo.com.

• Andrew Wilkinson on things that don’t seem to work while building Tiny.

• Stripe and Shopify are showing live analytics of Black Friday and Cyber Monday performance on their platforms.

Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.

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Sneakers have become a huge cultural symbol. Nike hit it off with Jordan, and top brands followed their strategy. Fighting to collaborate with the most influential athletes and artists, creating an industry worth around US $86B globally.

This number only shows how many of us are into these cool shoes. They're not just for athletes anymore – everyone wants a pair of sneakers.

Let's dive in.

Imagine this

• With holidays around the corner, you find yourself racing against time to buy presents for your kids.

• All of them are sneaker fans, and you know it’s the perfect gift.

• Initial searches lead to extended delivery times from websites that seem unreliable.

• Even when you find a promising site, the prices are too high, with added shipping fees.

• So you search for alternatives, ultimately landing on Strade, a sneaker marketplace for Latin America that offers quick deliveries and a sense of trust for buyers.

Explain it like I'm five

STRADE is a luxury sneaker marketplace.

• Strade World connects sneaker resellers with buyers, giving them the confidence to buy luxury sneakers online.

• Strade Custom specializes in creating unique sneaker designs for various clients, including artists and businesses.

• Their reseller platform allows resellers to manage their inventory, orders, client tracking, and access to a network of resellers in the region.

Founders aim to make the most trustworthy sneaker marketplace for Latin America.

The ABCs

• Industries: Retail, marketplace

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2022

• Team Size: 19

• Raised: US $500k (Pre-seed)

• Investors: Platanus Ventures, Angel Hub, Blue Zone Ventures, Arkangeles, Life is Too Short Capital

• Business Model: SaaS, custom sneakers, and C2C marketplace

Other players:

• Goat

• StockX

• Invictus

Background check

What we like:

• Traction: Viking Studio, now known as Strade, began selling custom sneakers to various clients. Building on this, they launched a sneaker marketplace in August 2023, and according to the founders, they currently have around +350 resellers and are growing around 60% MoM. In our interview, the founder also shared that more than US $40k is transacted monthly on their website.

• Resellers: To have a variety of sneakers in their marketplace, Strade decided to focus on the reseller platform first, allowing them to manage their inventory, bringing traffic, and making it convenient for them to stay on the platform.

• TAM: In Mexico, the sneaker industry is estimated to be worth around US $1.86B, with an annual growth rate of 5.14%. Strade also wants to expand its operations in other countries in Latin America, where the market is also thriving.

• Logistics: International players have entered the market, but there is very little selection of sneakers that can be shipped, and those that can be shipped take weeks. Strade uses this as an advantage and promises clients around 3-5 shipping days and a lower cost.

• Trust: There are many ways to commit fraud in a luxury market. The sneaker world is no different. Many sell fake sneakers on the market. To tackle this, Strade checks each sneaker sold by resellers to ensure authenticity. If they sell any fakes, STRADE takes responsibility for it and refunds their clients.

Roadblocks:

• Network effects: For Strade to continue growing, they need more sneaker selection. This means bringing more resellers into their platform and having a big enough audience so both resellers and buyers keep returning to the platform and recommending it to others.

• Margins: Reseller marketplaces have low margins. Some pairs of sneakers get resold 2-3 times before reaching the end customer, and they still have to take care of logistics costs. Their bet is that resellers in Latin America will adopt their management platform to add more revenue streams to their business.

• Inventory: Researching their website, we discovered a gap in sneaker sizing. They have an extensive catalog but don’t offer sneakers in all sizes. If clients can’t get the size they want, they will look at other platforms, losing sales.

• Players: StockX and Goat, with US +$3B valuations, have established their footprint in Latin America. There is also Amazon and Meta, which are the world's biggest marketplaces for sneaker resellers.

The Architects

• David Estrada, Co-founder & CEO. Previously @ Red Eyed Academy.

• Javier Lavida, Co-founder & CTO. Previously @ Netflix.

• Angel Alvarado, Co-Founder & COO.

Request intro with founders by sending an email to gabriel@readrunway.com

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Headlines Corner

• OpenAI board has fired Sam Altman as CEO (NYtimes).

• Legria, a Chilean vacation rental co-ownership platform, raised US $6M from Chile Ventures, Genesis Ventures, and others (LAVCA).

• Eurofarma, a Brazilian pharmaceutical company, has recently opened a new venture capital fund and aims to invest US $100M in biotech startups (Contxto).

• Teclogi, a Colombian logistics startup connecting businesses with freight transport services, raised US $4.3M (Latamlist).

Founders Bookmarks

The best tools and resources we came across this week.

• Marc Randolph on knowing why your business failed.

• YC's 22 pieces of essential startup advice.

• Peter Thiel on the best idea he had for managing people.

Today's edition is brought to you by Atomic 32 - transforming ideas into digital solutions.

For many years, access to alternative investments was reserved for high-net-worth individuals.

With new fintech laws, entrepreneurs are leveraging new ways to bridge this gap, reshaping investment opportunities for many.

Let's dive in.

Imagine this

• As an investor with a typical portfolio featuring bonds, ETFs, and stocks, you decide to diversify your investments after saving up some money.

• Interested in the startup world, you start to research about angel investing.

• Quickly, you realize that there are significant barriers, such as access to the right people and high entry costs to secure good angel investment deals.

• In your research, you come across Arkangeles, a crowdfunding platform that offers accessible angel investments.

Explain it like I'm five

Arkangeles is a crowdfunding platform that allows users to invest in early-stage startups based in Latam.

• Investors can start their angel investing journey and diversify their portfolios with as little as 5,000 pesos.

• Startup founders can raise money through crowdfunding, giving them access to a large investor audience.

Founder aims to educate the next generation of angel investors and provide opportunities for anyone looking to diversify their portfolio.

The ABCs

• Industries: Fintech, Alternative Investments

• Headquarters: Mexico City, Mexico

• Year Operations Started: 2018

• Team Size: 8

• Raised: US $2.3M Pre-seed

• Investors: Undisclosed

• Business Model: Placement Fee (8%), VC Traditional Business Model

Other players:

• AngelHub

• Snowball

• Play business

Background check

What we like:

• Client Base: According to the founder, on average, each angel investor invests in 3.5 startups, and their growth has been organic. They have over 800 active angel investors and have listed approximately 95 startups on their platform. Among them are some popular names like Albo, Vexi, BauApp, Finerio, Truora, Cincel, and Ubits.

• Courses: Since angel investing is a term that is rare in Mexico, Arkangeles also offers educational courses on its platform. This creates an additional revenue stream for them and helps people better understand how investing in startups works. Additionally, they have established partnerships with TEC (Tecnológico de Monterrey) and TechStars (Global Accelerator).”

• Due diligence: The founder claims their due diligence team thoroughly researches all the startups and investors they list on the platform. They also collaborate with top VCs in the region, including 500 Latam, Mass Challenge, Pygma, and Cube Ventures. Arkangeles decides to onboard a new startup and is in charge of doing the due diligence. The same goes for onboarding a new investor, as a KYC (Know Your Customer) is mandatory.

• Alternative assets: Inflation is growing by the second, and as a result, some investors are exploring alternative assets with the potential for substantial returns bigger than the S&P500 or similar investments. Angel investing is an appealing option for those looking to diversify their investment portfolios and are looking for a bigger potential return.

Roadblocks:

• Liquidity: Liquidity is a significant concern for investors, as their investments are often illiquid. Investors must seek a willing buyer prepared to pay the determined price, which can lead to long negotiations and, ultimately, a lower valuation. In many cases, startups need an exit strategy, such as being acquired by another company, going public through an IPO, or raising another funding round for investors to sell their stocks and see a return.

• Economic conditions: If the market is down, interest rates are up, and inflation is up, fewer people will be inclined to invest in early-stage startups. Their user activity comes in correlation with economic conditions that are beyond Arkangele's control.

• Trust: People may be hesitant to invest in startups. Over the years, we have witnessed numerous instances of fraud in startup investments, and this is not a new phenomenon. When considering investments in startups, it's crucial to be fully aware of the associated risks. Arkangeles must have a reliable team and reputation to maintain credibility. As well they must also have a strong legal structure for crowdfunding investments.

• Quality startups: Arkangeles should maintain a strong track record and feature high-quality startups on their platform. If an investor visits their website and doesn't find compelling startups with good potential, they are less likely to invest.

• Consistency: Some can argue that investing in startups is a numbers game. You invest in 10 startups, and out of those, nine may fail while one succeeds, and one success can make up the losses incurred by the others. However, the challenge lies in maintaining both the consistency and capital needed to keep investing, as some individuals might become discouraged and give up after their initial investments in the first 3-4 startups fail.

The Architect

• Luis Barrios, Founder & CEO, Previously @ Mercado Bitcoin.

Request intro with the founder by sending an email to gabriel@readrunway.com

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Stressed about technology in your company? Doubts about how to prepare for the future? Don't worry, Atomic32 has your back.

Atomic32 is a software development company specializing in transforming ideas into digital solutions and modernizing companies to compete in the digital world.

Atomic32's approach is threefold: Strategy + Creativity + Technology. Whether you are looking for a tech assessment, software development, legacy modernization, tech strategy consulting, UI/UX Design, or even to create new digital businesses, Atomic32 has you covered.

With a track record of impacting over 5 million users and transforming over +20 enterprises, Atomic32 has solidified its position as an industry leader, guiding its customers through their tech journey.

Reach out to Gerardo Aranda Claussen (gerardo.aranda@atomic32.com), Atomic32's CEO, to accompany you and your team in your tech evolution to help you reach your strategic goals.

Learn More

Headlines Corner

• iugu, a Brazilian fintech startup for automating and cash management, raised USD 14M in FIDC (Latamfintech).

• Kavak announced the shutdown of operations in Peru and Colombia (Whitepaper).

• Loads, a Chilean Agtech e-commerce startup that connects importers with global producers, raised USD 2M in funding (Latamlist).

• Able-On, a Brazilian AI startup simplifying logistics, raised USD 1.4M in funding (Startupi).

Founders Bookmarks

The best tools and resources we came across this week.

• Pinterest rising trend report of 2023.

• Finance and consulting interview training by Brett Adcock.

• OpenAI launched new features, including generating GPT agents for specific topics.

Building in LATAM? Send us your pitch deck for the opportunity to be featured in Runway.

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Despite living close by, many neighbors hardly know each other, which makes tackling community problems tough, leaving room for misunderstandings and a lack of collective action.

Let's dive in.

Imagine this

• You live in a gated neighborhood with security guards as a safety measure.

• However, guards can access your guests’ personal identification, which contains their home addresses and could potentially share their information.

• Administrators struggle with collecting payments from residents.

• Residents have difficulty communicating with neighbors, raising reports, and understanding where their monthly maintenance fees are allocated.

• With Kolonus, everything comes into one place: generating QR codes for your guests, making payments through their app, and disabling car tags for residents who have not paid their dues.

Explain it like I'm five

Kolonus is a platform that addresses the needs of residents, administrators, and security guards.

• Administrators can run their operations smoothly by being able to communicate and charge monthly fees to residents.

• Guards are able to uplift security measures with tools and real-time log information.

• Residents can facilitate access to guests, chat with neighbors, and manage monthly maintenance fees.

Founders aim to secure gated neighborhoods and enhance community living.

The ABCs

• Industries: Proptech

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2015

• Team Size: 32

• Raised: Pre-seed (Raising Seed)

• Investors: AngelHub & Family offices

• Business Model: SaaS, monthly fees per household + added services and hardware

Other players:

• Comunidad Feliz

• VivoOK

• NextDoor

Background check

What we like:

• Multiple Solutions: Kolonus offers various solutions to residents, security guards, and community administrators through its app. In addition, they also provide 'Kioskos' for controlled access, 'TAKs' for residents' cars, which offer faster access to their homes, and 'Rondinero,' allowing guests to monitor the guard's locations in real-time.

• Traction: According to the founders, Kolonus is profitable and serves over 100,000 users across Mexico, Ecuador, Colombia, and Honduras. Their client retention rate is above 98%.

• Safety: Gated neighborhoods and apartments are kept safer by tracking security events in real-time, controlling who enters the area, and making it easy for residents, guards, and managers to communicate with each other.

• Market: Their client distribution ranges from apartments (15%), houses with gated communities (83%), and the rest for offices. They can target a broad range of audiences since their technology adapts to different needs and markets and works with construction companies and resident/building administrators.

Roadblocks:

• Crowded: In the words of the founder, “Being able to replicate what we did in Nuevo Leon is extremely challenging.” Founders’ primary focus is replicating its dominance in other states and countries.

• Data Privacy: With sensitive resident and payment data, Kolonus must invest in cybersecurity measures to protect against data breaches and cyberattacks.

• Customization: Neighborhoods vary in their requirements, and this becomes even more important when expanding to different countries with distinct cultural differences.

The Architects

• Francisco Macedo, Co-founder & CEO, previously @ Villacero.

• Angel Ortiz, Co-founder & COO, previously @ Neoris.

• Humberto de León Ortega, Co-founder & CFO, previously @ OXXO.

Want to invest? Request intro with founders by sending an email to gabriel@readrunway.com.

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Headlines Corner

• Verqor, a Mexican financing startup for the agricultural sector, secured US $7.5M in funding (Whitepaper).

• Atani, a Spanish crypto exchange, raised US $6M (Emprendedores).

• Sky Blue Analytics, a Uruguayan financial analytics startup, raised US $120k in funding (Latamfintech).

• Axify, a Mexican BPL startup, raised an investment of US $1.3 million in funding (Contxto).

Founders Bookmarks

The best tools and resources we came across this week.

• 40 things Rockefeller wrote to his son.

• How to make decisions like a poker player.

• A mental model for deciding which startup ideas to pursue.

Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.

This is making people think twice and leading them to look for healthier alternatives.

Let's dive in.

Imagine this

• After years of working in the US with a top consumer packaged goods company, you venture out and start your own business in Mexico.

• As a kombucha fan, you identified a lack of options in the Mexican market, with drinks being too pricey and not suited to your taste buds.

• You formed a partnership with a US kombucha brand, initiating its import to the country, and quickly noticed a strong demand.

• After some years, financial challenges started to kick in as a rising dollar reduced margins, making it no longer viable to import kombucha from the US.

• In response, you adapted by building your own kombucha factory, which is how Bebida Viva was born.

Explain it like I'm five

Bebida Viva is a consumer-packaged good health beverage company.

• They have developed two main products, Bebida Viva kombucha and RocaMina, a healthy energy drink made out of plants.

• They produce and test all their products in their own facility and lab in Mexico.

• Formulas have been crafted to provide 100% live probiotics and natural ingredients.

Founder aims to become the preferred Mexican brand of functional and healthy drinks.

The ABCs

• Industries: Consumer health beverages

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2019

• Team Size: 19

• Raised: Bootstrapped (Currently Raising)

• Business Model: B2B (retail) & E-commerce (B2C)

Other players:

• Enerxia

• Dominga

• MiAmor

Background check

What we like:

• Growing Market: The kombucha market is on an upward trend. In 2022, the global market value of kombucha was estimated at over US $2.7 Billion, and it is estimated to reach US $11.2 Billion in 2030. The demand has grown because of increased health awareness and social media presence of the product benefits.

• Capacity: According to the founder, their facility is operating at full capacity, producing more than 75,000 bottles of kombucha per month, and they are looking to increase their volume. Sales have grown over 60% in the last year alone.

• Pricing: Several US brands have tried to penetrate the Mexican market but failed. One major advantage is that they produce, test, and sell their drinks in Mexico. kombucha is an expensive drink, and with import expenses, US kombucha companies could not compete in the country.

• Stockout: In our interview, the founder mentioned a very important metric. Bebida Viva has seen an increase of 60% in their sell-out rate versus 2022. This means that demand has increased for kombucha products in 2023.

• New Products: Bebida Viva has started testing other products. Their most recent launch is RocaMina, a plant-based energy drink looking to compete with Monster and Redbull by offering a healthier alternative.

Roadblocks:

• Niche: According to the founder, Bebida Viva's primary target market consists of individuals aged 18-35, primarily those who are well-educated about health concerns. This narrows the market because, in Mexico, health-conscious individuals are often found at the top of the socioeconomic pyramid, which limits their client base.

• Education: Very few people know what kombucha is and what benefits it has to offer. Additionally, consumers usually shop for their products through retail spaces, so explaining the product effectively on the packaging is crucial.

• Cash Flow: The majority of their clients are retail businesses. This can present cash flow challenges because these businesses usually have extended payment terms of up to 45, 60, or even 90 days, which can harm Bebida Viva’s operations.

• Logistics: Their sales are divided, with 80% coming from retail and 20% from other channels. An issue with the distribution is that kombucha has to be refrigerated since it has live probiotics. Refrigerated drinks are more expensive to ship, adding cost to operations and product pricing.

The Architects

• Marcelo Hinojosa Founder & CEO. Previously @ PepsiCo.

Want to invest? Request intro with founders by sending an email to gabriel@readrunway.com

Compartir

Headlines Corner

• Finerio Connect, a Mexican startup developing an open finance platform, raised US $6.5M in funding. (Techcrunch)

• Tidewise, the Brazilian startup specializing in naval marine technology raised US $1.9M. (Latamlist)

• Teker, a Colombian health-tech platform for booking appointments, secured US $1M in funding. (Forbes)

• 500 Global has launched its 19th program for startups, “Somos Lucha.” 12 startups from Latin America are joining, and 6 are from Mexico. (Expansion)

Founders Bookmarks

The best tools and resources we came across this week.

• YC's essential startup advice.

• VC funding has reverted to levels last seen in 2015.

• 10 tricks rooted in psychology to make you a better storyteller.

Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.

Today's edition is brought to you by Atomic 32 - transforming ideas into digital solutions.

Navigating the competitive job market can be intimidating for young students and recent graduates.

They find themselves lost in a sea of concepts they’ve never heard of and mainstream platforms that overshadow young talent.

Let's dive in.

Imagine this

• You are just about to graduate from college and are excited to start your professional career.

• You hop on LinkedIn to search for appropriate job roles.

• However, all the entry-level jobs you like require “2 years of experience.”

• You think, “How am I supposed to land a job when everything requires experience?”

• If only there were a platform focused on students and recent graduates.

• That's when your university recommends signing up for Bond, a platform designed to help students and recent graduates on the next steps in their professional careers.

Explain it like I'm five

Bond is a job-seeking platform that helps students and recent graduates find their next opportunity.

• They enable users to search for jobs based on their interests and skills and offer personalized job opportunities every two weeks.

• Students can accept job offers and receive payments directly through the platform, with assisted support provided at every step, including SAT and tax payment guidance.

• Companies and universities partner with Bond to match young talent with open roles and manage them.

Founders aim to provide students and recent graduates with the necessary tools to kickstart their professional careers.

The ABCs

• Industries: HR-tech, Fin-tech

• Headquarters: Monterrey, Mexico

• Year Operations Started: 2021

• Team Size: 9

• Raised: Undisclosed (Pre-seed)

• Investors: Friends and Family

• Business Model: Placement fee + transaction fees

Other players:

• LinkedIn

• Indeed

• OCC

Background check

What we like:

• Student-centric: Most hiring platforms in Latin America are focused on Mid and Senior-level professionals, leaving students and graduates with limited opportunities. Bond fills that gap, assisting in CV crafting and SAT preparation and guiding them through fiscal obligations.

• Traction: According to the founders, over 100 companies have summited job openings through their platform and have assisted hundreds of students and recent graduates in starting their careers.

• Partnerships: Founders invested significant time in adding value to universities. More than 10 of Mexico’s top universities recommend Bond to their students, helping them discover their next career steps and opportunities.

• Companies: Companies hesitate to hire interns and recent graduates as future role fit is uncertain, and adding new associates to their payroll is complex and expensive. Bond’s payment solution helps companies work with them as independent contractors while mitigating misclassification risk.

• Sourcing: In recent years, the rise of remote work has paved the way for many companies to work with offshore talent. Bond's extensive network of universities is full of exceptional young talent, drawing the attention of US-based companies incentivized to hire in Mexico, decreasing labor costs.

Roadblocks:

• Opportunities: For Bond to succeed, they must continue to have promising job opportunities. This means adding value to current companies so they don't leave their platform and attracting new companies to seek their talent.

• Trends: Since Bond only targets students and recent graduates, most users should come in January or August, when students graduate or enter school. During other months, platform activity may decrease.

• Volume: Their business model relies on a heavy volume of users and businesses since they operate on thin margins. The team must develop new revenue streams to be more comfortable in downtimes. Bond usage is also influenced by economic conditions; during crises or periods of high inflation, hiring and usage may decrease.

• Misuse: Many Mexican businesses seek tax evasion strategies. Bond's platform could unintentionally aid company employees to reduce tax and benefits costs. Bond works closely with partner companies to ensure compliance, staying mission-focused and aligned with law requirements.

The Architects

• Juan Elizondo, Co-founder & CEO. Previously @ Agnes Everywear.

• Fernanda Lozano, Co-founder & CPO. Previously @ Kinedu.

Request intro with founders by sending an email to gabriel@readrunway.com

Compartir

Together with Atomic 32:

Stressed about technology in your company? Doubts about how to prepare for the future? Don't worry, Atomic32 has your back.

Atomic32 is a software development company specializing in transforming ideas into digital solutions and modernizing companies to compete in the digital world.

Atomic32's approach is threefold: Strategy + Creativity + Technology. Whether you are looking for a tech assessment, software development, legacy modernization, tech strategy consulting, UI/UX Design, or even to create new digital businesses, Atomic32 has you covered.

With a track record of impacting over 5 million users and transforming over +20 enterprises, Atomic32 has solidified its position as an industry leader, guiding its customers through their tech journey.

Reach out to Gerardo Aranda Claussen, CEO, gerardo.aranda@atomic32.com, https://calendly.com/garanda, to accompany you and your team in your tech evolution to help you reach your strategic goals.

Headlines Corner

• Yooga, a Brazilian restaurant operations system startup, just secured $2.3M USD (Tech Crunch)

• Wareclouds, a Chilean logistics startup, raised $2M USD to expand to Brazil and Mexico. (Whitepaper)

• WeShip launched WeShip Track- a post-shipment enterprise solution software for e-commerce. (WeShip)

Founders Bookmarks

The best tools and resources we came across this week.

• OpenAI founder Sam Altman on the principles needed to be successful.

• Whitepaper on the common traits investors look on startups in Mexico.

• Learn about the VC and startup ecosystem in LatAm through X.

However, renting a place to live these days still tends to be informal, disorganized, and inefficient.

Let's dive in.

Imagine this

• You're a real estate broker who, after weeks of showcasing an apartment, finds the ideal tenant. However, due to traditional security measures like having an "Aval," the deal falls through.

• Most potential tenants don´t have a guarantor to vouch for them, which makes the process slower.

• Closing a rental operation takes weeks of interviews, screening, contract elaboration, and building trust between parties.

• Additionally, you have to deal with the extensive paperwork of managing your tenants and contract renewals.

• This is where Mica plays a role in providing brokers, landlords, and tenants with more efficient tools to make their experience smoother.

Explain it like I'm five

Mica is a web platform and app that simplifies renting by equipping tenants and landlords with legal and financial tools to pay bills and underwrite risk.

• Brokers can gain a higher deal flow of potential tenants and leave screening, contract creation, and security to Mica while obtaining an extra commission.

• Landlords can stress less by having Mica take care of screening, contract creation, rent collection, and protecting their rent. Mica also takes care of legal risk and breaches of contract.

• Tenants can rent without a guarantor and manage all their bills and payments while increasing their credit score.

Founders aim to make the renting experience safer and smoother for all parties involved.

The ABCs

• Industries: Proptech

• Headquarters: Mexico City, Mexico

• Year Operations Started: 2022

• Team Size: 18

• Raised: US $270k Pre-seed (Raising seed round)

• Investors: Techstars, Arkfund, DVC, First Check Ventures, Iluminar, Flight VC, Stellar, Valhalla Valley Ventures

• Business Model: Annual & monthly subscription fees

Other players:

• Credpago

• Morado Uno

• Nowo

Background check

What we like:

• Traction: Founders shared that they have been growing on average 123% Month over Month in revenue since launching. Also, Mica is currently the only PropTech in the rental space that has formed a strategic partnership with AMPI, the country's largest real estate organization.

• Partnerships: Instead of looking for individual landlords, Mica’s team is dedicated to making strategic partnerships with individual real estate brokers and agencies. Most of their clients are coming directly from them. Once they see the added value, the same brokers and landlords recommend their services to more clients, creating a flywheel effect.

• Timing: A recent Mexican tax law was implemented in 2022, reducing the tax burden on rental income from +20% to just 1.25%. It does not apply to all. The tax benefit is only for those who meet the required criteria of RESICO. However, this has opened the doors for those seeking to formalize and improve the renting experience.

• Screening: They manage due diligence for landlords, simplifying the process of investigating tenants looking to rent. Their machine learning models can check multiple data points that help them accelerate the vetting process. Founders claim that they can approve tenants in days instead of months as the traditional methods.

• Legal: When renting a property, many legal documents and processes must be done for a tenant to occupy the property. Mica takes full accountability for the tenant’s responsibilities, acting as their guarantor, making the process smoother, and paying rent to landlords if tenants fail to comply with the contract requirements.

Roadblocks:

• Risk: If tenants don't follow through with their agreements or breach their contracts, Mica must apply the quickest eviction process in the market to cap their risk.

• Costs: SPEI transfers and cash payments are efficient. Most tenants don´t want to pay for extra services and don´t mind paying cash or making bank transfers to landlords. Mica has to work hard on adding benefits to all parties, so it makes sense for them to jump on their platform.

• Tech: Each rental case has unique specifics, and no standardized requirements exist. They all have significant variations. Developing a digital solution to address all the different scenarios is tough.

• Assurance: Mica's main advantage is offering legal assistance and security when renting. However, according to the founders, they have found that gaining the trust of potential clients takes time.

The Architects

• Julian Stastny, Co-Founder & CEO. Previously @ Homie & Byprice.

• Jesus Gutierrez, Co-Founder & CTO. Previously @ Homie & Redify.

Want to invest? Mica is currently raising their seed round. Request intro with founders by sending an email to gabriel@readrunway.com

Compartir

Headlines Corner

• Cobre, a Colombian payment automation platform for CFOs, raised USD 13M in funding. (Techcrunch)

• Lipigas acquired 70% of Rocktruck, a Chilean logistics startup, for USD 13.4M. (Descubre VC)

• Luuna, a Mexican mattress startup, has opened its first factory, investing USD 25M to boost production. (Mexico Business News)

• Bia, a Colombian energy startup, raised USD 16.5M in a Series A round led by Kaszek with contributions from Nazca, Ewa Capital, and WildSur. (Latam List)

Founders Bookmarks

The best tools and resources we came across this week.

• 10 free online AI courses from top companies.

• Varda launched a drug manufacturing factory in space.

• Here is a framework to help you make better hires.

Building in latam? Send us your pitch deck for the opportunity to be featured in Runway.

With 30% of China’s manufacturing capacity expected to move elsewhere, Latin America must implement new technologies to compete with companies flooding the region and increase efficiency to reach demand.

Let's dive in.

Imagine this

• You recently took a new job as head of manufacturing operations.

• In the first days, you realize the plant's capacity is at a mere 70%, resulting in a significant loss of money and products.

• As you dig deeper to figure out the problems, you begin searching for solutions.

• Monitoring companies are on the table, but you're also after something to aid decision-making.

• You remember that in your last company, Allie was implemented, which made operations smoother and the factory reach their capacity target.

Explain it like I'm five

Allie is a B2B AI-based technology platform for the manufacturing industry.

• Hardware: Their team installs “Allie Gateway” hardware to factory machines containing their code, allowing information to flow throughout their platform and creating actionable insights for operators and supervisors.

• Platform: They provide real-time advanced analytics of all production lines, allowing supervisors to detect problems in efficiency, product waste, and costs across different stations. Advanced modeling uncovers patterns, anomalies, and data sets.

• Allie assistant: Leveraging the factory production data, manuals, and processes, they also offer an AI chat assistant to provide analysis through generative AI.

Founders aim to transform legacy manufacturing companies, starting with Latin America.

The ABCs

• Industries: Machine Learning, Manufacturing, AI

• Headquarters: Mexico City, Mexico

• Year Operations Started: 2022

• Team Size: 35 full-time employees and 50 part-time implementation partners

• Raised: Pre-Seed $2.3M

• Accelerator/Investors: Undisclosed

• Business Model: SaaS, Hardware

Other players:

• Control Rooms AI

• Augury

• Monitoring companies

Background check

What we like:

• Scaleable: Allie is going after manufacturing leaders in Latin America. The software is trained by modeling over 125,000 machine variables across manufacturing companies in the United States, Mexico, Spain, Chile, and Colombia, manufacturing products worth around USD $30 billion in annual production.

• Network effects: As more companies implement Allie into their operations, the intelligence of their machine-learning models gets smarter. Ultimately making their solution more valuable for each of their clients.

• Actionable: Most solutions available in the market don´t learn from the data they provide. Allie leverages the information from production lines and, with the help of Artificial intelligence, transforms data into implementable actions across the production floor.

• Efficiency: By anticipating when machines need maintenance or adjustments, operations become more agile, increase efficiency, and save time. Founders claim that companies that have integrated Allie into their operations have boosted efficiency by 10-15%.

Roadblocks:

• Capital: Raising money for a startup is hard enough. However, according to the founder, a major challenge is raising money for a “hardware” enabled company since it's considered a more traditional and capital-intensive model.

• Resistance to change: Operation managers in manufacturing companies have their own way of solving processes and finding solutions. They have their protocols, procedures, and methods. Changing an operator's method is very difficult if someone has been doing the same processes for 5,10, or even 20 years, and most operators may resist adopting new methods.

• Solution failure: According to research conducted by McKinsey, approximately 70% of digital transformations in the industrial sector ultimately fail. Some contributing factors include a lack of conviction from the CEO or management team regarding the importance of the change, which often results in organizational resistance. Employees may be reluctant to invest additional time in learning new procedures, or the business may lack the necessary capabilities to drive the transformation forward.

The Architects

• Alex Sandoval, Co-founder & CEO, Previously @ Rappi.

• Nicolas DeGiorgis, Co-founder & CTO, Previously @ Rappi.

Request intro with founders by sending an email to gabriel@readrunway.com

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Headlines Corner

• Nubank is dipping its toes into the investment market by launching two new dividend-focused ETFs. (Blomberg Linea)

• Incode, a Mexican unicorn startup specializing in AI-powered identity verification and authentication, has revealed the inauguration of a new office in Brazil. (Contxto)

• Headway, a US mental health startup, raised $125 million at a $1 billion valuation. (Reuters)

• Blind Creator, a Mexican startup for managing and promoting influencers, raised US $582k. (Latam List)

Founders Bookmarks

• The six different kinds of wealth.

• How can a startup build a great recruiting pipeline?

• Allie recently pitched their startup at the TechCrunch Disrupt 2023.