Discover more from Whitepaper.mx
Crowdfunding platform for Latin American startups
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.
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.
Industries: Fintech, Alternative Investments
Headquarters: Mexico City, Mexico
Year Operations Started: 2018
Team Size: 8
Raised: US $2.3M Pre-seed
Business Model: Placement Fee (8%), VC Traditional Business Model
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.
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.
Luis Barrios, Founder & CEO, Previously @ Mercado Bitcoin.
Request intro with the founder by sending an email to email@example.com
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 (firstname.lastname@example.org), Atomic32's CEO, to accompany you and your team in your tech evolution to help you reach your strategic goals.
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).
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.