Santiago Aparicio

A lot of investors have been asking me what the major industries are in the Venture Miami Built in Miami Startup Program. Here's the industry breakdown across 214 new South Florida startups. TLDR: The South Florida startups are pretty diverse across industries. Here's the largest categories in order: - 16.2% AI & Machine Learning - 14.2% EdTech - 12.2% Healthcare - 8.5% Marketing & Sales Tech - 8.1% FinTech - 7.4% Sustainability - 6.1% Travel & Hospitality - 6.1% E-Commerce The smallest category: Cybersecurity at 1.2% There's an additional 50 startups that didn't complete the survey in time but we'll get that info updated by Demo Day June 20th. #BuiltinMiami

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This part of my conversation with Joao Barbosa, co-founder at the world’s leading wellness platform Gympass (now Wellhub) valued at $2.4 is a testament to the fact that nothing big actually started big 👇 It took Gympass 5 pivots and 2 near death experiences to find the business model that works and is scalable across the globe What I found really interesting is the framework that the team had around pivots - the tripod approach towards creating value. This approach could benefit many founders especially in marketplace kinda businesses Head over to our channels on Spotify, Apple and YouTube to watch / listen to the full conversation link in comment 🔗 The J Curve #thejcurvepodcast #podcastrecommendation #gympass #pivot #entrepreneurship #founder #venturecapital

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The next great VCs in Latin America are being founded today. If this is the best time to invest in startups, it’s also the best time to launch a new VC firm. Unlike the easy money of 2020-2021, today’s climate demands grit and ingenuity. To make things harder, everyone is raising in Latin America, from established firms to emerging GPs. Back then, it was easier to raise a first fund but also, a terrible time to deploy capital. Today, if you can bring a fresh perspective, assemble a stellar team, and raise $5-10M, this is your moment. Excited to co-invest with these bold VC founders!

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Meta Q1 FY 24 Meta has two business segments: FoA: Family of Apps (Facebook, Instagram, Messenger, and WhatsApp). RL: Reality Labs (virtual reality hardware and supporting software). FoA Daily Active People grew +7% Y/Y to 3.24 billion. Zuck called out healthy growth in the US, on WhatsApp specifically. As expected, management stopped reporting Facebook standalone numbers. 📊 Ad impressions grew +20% Y/Y (vs. +21% Y/Y in Q4). Average price per ad grew +6% Y/Y (vs. +2% Y/Y in Q4). Growth was strongest in Europe and Rest of World. The average revenue per person grew +18% Y/Y to $11.20. Higher engagement met continued strong advertising demand. For context, 💰 Operating cash flow was $19.2 billion (53% margin, +4pp Y/Y). Free cash flow was $12.5 billion (34% margin, +10pp Y/Y). Balance sheet: Cash, cash equivalent, and marketable securities: $71.5 billion. Long-term debt: $18.4 billion. 👀 Q2 FY24 revenue was $37.7 billion in the mid-range ($38.3 billion expected). FY24 expenses $96-$99 billion (previously $94-$99 billion). FY24 Capex $35-40 billion (previously $30-$37 billion). So what to make of all this? User net additions were consistent with Q4 metrics. Meta still found a way to add another 50 million users to its Family of Apps. However, it was a slight slowdown after four consecutive quarters of accelerating growth. Revenue grew +27% Y/Y in constant currency. It was another acceleration from +23% Y/Y in Q4. The usual suspects were behind ad revenue growth: The online commerce vertical was the largest contributor to year-over-year growth, followed by gaming and entertainment & media. Growth was strongest in Rest of World (40%) and Europe (33%). 💻 Reality Labs revenue grew 30%, driven by Quest 3. The lower loss for this segment was primarily due to a favorable comp with restructuring costs last The operating margin improved following the “year of efficiency.” Meta incurred $3.5 billion in restructuring charges in FY23 (primarily facilities consolidation and employee severance costs). However, it was slightly down sequentially. 💰 Returning cash to shareholders: Stock buybacks were $15 billion in Q1, a huge increase compared to $9 billion in the prior year. Management still finds the stock attractive enough. They also paid $1.3 billion in dividends. Free cash flow hit a Q1 record, another manifestation of the year of efficiency. While Meta loses nearly $16 billion annually on Reality Labs, the company remains a cash-printing machine ($48 billion in free cash flow in the past 12 months). FY24 Capex and operating expenses were raised, primarily due to higher infrastructure investment to support the AI roadmap. #meta #ai #ads #growth

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At the recent Founders N' Funders event, I got to see our founder Eduardo Henriques give a quick 30-second pitch for Ponder.ly - a really exciting glimpse into what we're building. For those interested in seeing the full pitch and learning more about our AI-powered consumer intelligence platform, Eduardo Henriques will be presenting at the upcoming Pitch Deck Review Session on May 20th. This is a great opportunity to observe his pitch to a panel of startup experts who will provide valuable feedback. As a co-founder, I'm really passionate about the problem we're solving - enabling brands to ethically collect customer data and generate deep insights, while empowering consumers to control and benefit from sharing their information. Our approach using interactive branded data communities, gamification, and AI is truly innovative. I'd encourage anyone interested in disruptive marketing/research technologies to sign up and check out Eduardo's pitch. It will give you a window into how Ponder.ly is pioneering the future of transparent data exchange between brands and customers. Looking forward to getting more exposure and feedback as we continue growing Ponder.ly into a game-changing platform! Thanks to Jeff Erickson with Founders N' Funders because without his support and unconditional belief in startups like ours, we wouldn't have opportunities like this. Supportive ecosystems play a vital role in nurturing entrepreneurship and innovation. Registration link: https://lnkd.in/guFgMib4 Tanner S. Zyanya Bejarano David Reyes Jose Octavio Carrillo

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After not being on a podcast for a few years, I’m happy to be back! It's also great that we discussed something I’m passionate about — venture capital. Breaking into VC is hard and people in the space (and those interested in the space) need to believe in the value of diverse experiences, networks, and skills to make better investment decisions and achieve better venture outcomes. So, check out my conversation with Sydney Wong, MBA, on her podcast about my journey, thoughts on the industry, and how to create opportunities as you grow professionally. Link in the comments and I would love to hear what was a highlight for you. #venturecapital #venturemindset #podcast

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Brex is one of my favorite fintechs. Ever wonder what their journey from $0 to over $300M in revenue within 7 years looked like? 2017-2018: The Birth of Brex • Henrique Dubugras and Pedro Franceschi, both 22-year-old Stanford dropouts, decided to flip the fintech world on its head by launching Brex, a corporate credit card tailored for startups. • With their co-CEO model (which has become popular), they doubled their management bandwidth. Internal & external duties? No problem when you have twice the number of CEOs to lead folks 2019-2020: Rapid growth • Brex quickly partnered with big names like DoorDash, Flexport, and Roblox. • In 2019, they secured $300 million in funding, catapulting their valuation to $2.6 billion. It’s amazing what you can achieve when you’re swimming in a pool of investor cash. 2021-2022: Diversification and challenges • Brex expanded its product suite to include expense management, bill pay, & travel booking services. If you’re going to burn through cash, you might as well make it convenient. • Despite their success, they faced some “minor” hiccups. Layoffs in 2022 were a delightful reminder that even fintech unicorns aren’t immune to cutting costs by cutting people. 2023: Strategic shifts • Transitioning to a single CEO model, Pedro took the helm while Henrique became chairman. Having two brains was slowing things down? • They continued to innovate, integrating AI into their platform. By the end of 2023, Brex hit over $300 million in revenue, proving that even with all the chaos, they were still making bank​. 2024: Path to profitability • With a goal of being cash-flow positive by 2025, Brex halved its cash burn by chopping 20% of its staff and focused on sustainable growth. Making money instead of burning it is always a sound strategy. • Serving 30K+ customers globally, Brex’s commitment to transparency & customer-centric solutions has kept them in the game. They’re not just participating – they’re rewriting the rules. Want to copy their homework? 1. Identify a significant pain point in an industry and create a solution that addresses it. Please don't start a business without doing this. 2. Utilize a strong co-founder dynamic to maximize efficiency & divide responsibilities effectively. Two heads are better than one, until they aren’t. 3. Secure early partnerships with influential companies to build credibility and a customer base. It’s always about who you know. 4. Listen to your customers. & Expand your product offerings to meet their evolving needs. 5. Maintain a strong focus on transparency & trust to build a loyal customer base. People surprisingly prefer not being lied to. 6. Strategically manage growth, and make tough decisions like layoffs when necessary to ensure long-term sustainability. 7. If you want to go public, be profitable. Did I miss anything?

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>>> How can SaaS companies future-proof their fundraising <<< I had the pleasure to speak with Adina Davis from BoxGroup, Nancy Chou from Asymmetric, Camila Key Saruhashi from Construct Capital and Philip Edmondson-Jones from Oxx during our panel on fundraising last Tuesday. A ton of great insights from the panelists after having been many years in the SaaS industry as investors, operators and advisors! We’ll be sharing some insights in the coming days, starting with: 🔷 Current Industry Trends 🔷 🔹In the US, SaaS companies are finally coming out of a two-year dip in funding and growth. Startups in the top quartile are still getting high valuations, but for growing companies, especially companies looking to secure series B funding, the bar is higher. Both equity and debt funding avenues look for stand-out efficiency, excellent product-market fit, and scalability. 🔹In Europe, upcoming funding rounds indicate a slightly more positive fundraising environment for growing SaaS companies. 🌏 Globally, many company metrics have taken a hit due to the macroeconomic environment, which can make it more difficult to meet the VC standards required to secure funding. 🔹That said, some of today’s most exciting and innovative startups received game-changing funding over the last couple years, and with more funding options entering the mainstream, companies have an opportunity to complement their capital stack through alternative means. #growthcapital #saasgrowth #venturecapital

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It was an absolute pleasure to sit down with Joao Barbosa, co-founder at the world's leading corporate wellness platform Gympass(now rebranded to Wellhub) for the most recent episode of The J Curve. Five big ideas from our convo 👇💡 1️⃣ Startup pivot is not an event, it’s a process Base your decision on data, customer feedback and other validated learnings. Establish clear KPIs that will guide decision-making and define what should success look like. Be prepared to test and iterate and test again. Flexibility, adaptability and sensitivity to feedback is key 2️⃣ Building a MOAT, or competitive advantage is essential for a startup to compete and sustain growth In Wellhub case the moat is network effect. It’s difficult and expensive to build (CAC was huge) but at scale it represents a huge barrier to exit for corporate clients 3️⃣ Put a lot of thought into pricing model, especially if you operate in a B2B segment Early-stage founders frequently under-price their offering. Once you land 1-2-year enterprise contracts, changing the price will be problematic 4️⃣ International expansion has to be carefully planned and executed post-product market fit Ideally once you have already significantly penetrated your domestic market and gained a clear understanding of how / why every dollar you spend internationally will deliver you more money than if you were to spend it domestically 5️⃣ Standardized processes are at the core of building teams at scale When you hire 100 people a month it’s not about keeping the bar high but about creating a clear set of rules to evaluate the performance and hire and fire fast You can listen to my full conversation with Joao by searching The J Curve Podcast on Youtube, Spotify and Apple Podcast For deeper insights into this conversation + some of my favorite listens and reads of this week check out our newsletter link in comment 🔗

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𝐅𝐮𝐧𝐝𝐫𝐚𝐢𝐬𝐢𝐧𝐠 𝐌𝐮𝐥𝐭𝐢𝐩𝐥𝐞𝐬 ≠ 𝐄𝐱𝐢𝐭 𝐌𝐮𝐥𝐭𝐢𝐩𝐥𝐞𝐬 🤔 Your last round’s valuation isn’t what your company is worth unless you stay on a high-growth path. Valuations from VCs are based on future expectations, while acquirers pay based on current performance. Thanks, Michael Ho for sharing. #VC #Startup #Funding #Growth #Business

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Our latest podcast episode just dropped! Our guest, Ignacio Carcavallo, Ventures Coach, Advisor, and Mentor, shared his coaching journey with us on this week's Founder's Journey Podcast's episode! Take a quick look at what Ignacio shares with us; -> You need a mentor. He explains that, in the beginning, as a startup founder, it's essential to have someone to talk to. Keep in mind that no matter how intelligent or skilled at executing you are, many of your decisions lack experience. -> Of course, you can't do it all yourself Ignacio describes how if you want to create a sustainable company that thrives over time, you need to cooperate. Why face everything solo? Build a team. -> You go to the doctor! You break a bone in half; you have a fracture. Would you say, "Today I'm going to walk slowly, and then I'm going to put on a bandage"? No! You go to the doctor! Ignacio used this example to discuss how he resolved his online branding crisis. How? Easy. He found a professional mentor, the best in personal branding, and started learning from him. -> Mitigating anxiety As a founder, talking to someone who has had this experience before, coaches, or consultants, will reduce your stress and anxiety. It is important to feel supported and to feel like you have a safety net. -> Back in time Ignacio also reminded us about his journey's challenges to success. "If I could only coach myself 10 or 15 years ago, my life would have been so much different!" - he reminisces. Keep listening to Ignacio's points in this week's editions of the Founder's Journey Podcast's 👋 Listen to the full episode today and Subscribe to never miss an episode. ♻️ Repost this to inspire your network 👉 Join the Founder's Collective Newsletter https://bit.ly/49NZKei

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‌I recently returned from spending a week in São Paulo, where I had the pleasure of visiting friends and loved ones. In addition to reconnecting, I engaged in productive discussions with founders, fellow venture capitalists, and other asset allocators. ✈ 👨‍💻 👊 The trip was filled with great meetings, offering valuable insights and market perspectives on early-stage venture capital and the fintech ecosystem in Brazil. 🎯 🌎 💡 #VCs #earlystage #investments #networking

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Allocate just released an analysis on a dataset of 253 venture funds, with only pre-2019 vintage years being included. The analysis shows a clear negative correlation between high risk / high reward investment profiles and size of venture fund, i.e. the smaller the funds, the higher the performance, but also the higher the risk. Two ways that LPs can mitigate the higher risk of smaller funds: 1. Diversify across more emerging managers, and 2. Invest across vintages with said managers. Here are the details: Small Funds (0-100MM): Mean TVPI: 4.3 Standard Deviation: 2.4 Median Portfolio Companies: 26 Mid-Sized Funds (100-250MM): Mean TVPI: 3.6 Standard Deviation: 2.0 Median Portfolio Companies: 24 Mid-Large (250-500MM): MeanTVPI: 3.0 Standard Deviation: 1.2 Median Portfolio Companies: 35 Large (500MM+): Mean TVPI: 2.7 Standard Deviation: 0.9 Median Portfolio Companies: 43

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6 questions I would ask CRO candidates for my hypothetical $30M SaaS company, based on the interview I just published with 🐶 Jacco van der Kooij, founder of Winning by Design. Find the full interview in the comments. 1. If I were to give you $____, where and how would you spend it? 2. The goal is 25% growth this year, but we need to cut costs. How have you solved for that in the past couple of years? 3. How much of the budget should be allocated towards new logo vs growth and expansion? 4. How many go-to-market motions do we have and how many should we have based on what you know so far? 5. Our reps are struggling with cold outreach. Have you had that challenge before and how did you solve it? 6. Give me an example of a strategic decision you made in the last 18 months, based on data. Why that data? What was the result? TL;DR SaaS has lost GTM fit and CROs need to be more analytical and strategic than they were just 3 years ago. 

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Multiples – Why EBITDA matters It used to be, not too many years ago, that SaaS companies were almost purely valued as a multiple of Revenue. Today, according to a recent report from Aventis Advisors, SaaS EV/Revenue multiples are less than 1/3 of what they were just two years ago, a 66% decrease. Interestingly enough, valuations based on EBITDA (of those same companies), while they have dropped, have only decreased by 25%. In other word - EBITDA matters. Gone are the days where simply posting growing revenue streams was enough to garner a great valuation. Now, you have to be profitable. Get a complimentary Value Builder assessment to see where you’re falling short. It may not be pretty – but isn’t it better to know now and address it vs. have an investor or acquirer give you the bad news? Either way, we’re here when you’re ready. ✅ Click the link in the comments section to 2x Your Value for your Endgame✅

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The best way to understand if your company has PMF…

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🔎 This is a well done analysis. 🔎 I gave a founder pretty similar advice yesterday about what to target and expect at the seed. And while I'm seeing founders raise seeds w/o any revenue, those founder are either repeat founders or strong pedigree founders (like AI Phd's with time at Google etc.). So for the typical founder, shooting for at least $250k in true ARR with 300%+ growth or more is a good target. And the more the more likely you are to raise funding. 🎯

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Fundraising Multiples ≠ Exit Multiples 🤔 At Collision this week I had a lot of chats with founders on this (often misunderstood) concept... To be honest, I didn't quite understand the why behind it until recently I always thought the valuation of our last round was what our company was worth - worst case scenario - as long as our revenue increased But that's not quite the case... Your last valuation only makes sense if you stay on the $1M to $100M in 7 to 10 years high growth path If you fall off this venture scale curve → you aren't worth your last valuation 🤯 You're actually worth A LOT less 😞 Let’s say you raise your $3M seed round... → at a $12M pre-money valuation → and you’re doing $500K in ARR → that would make a 24x multiple But that’s based on the (future) assumption that you’ll hit venture scale → meaning you’ll get to $1M ARR → and then get to $10M ARR in ~24 months But… What happens if your growth slows around $2M ARR? And now you’re only growing at 30% to 50% year over year… Could you sell the company for $15M (ie the post of your last round)? Probably not... You’re probably worth closer to $6M (or 3x $2M ARR) at best → which is about half your seed round valuation Why is that? The VCs valuation was based on future expectations (that didn't materialize) and the acquirer is buying you based on current performance More likely, they are arbitraging between the multiple they pay you (1-3x) and the multiple they’re valued at (~6.4x public index) So what does this mean? If you're going to head down the venture capital path → make sure you stay on the venture scale curve Your valuations multiples will trend down towards the public multiples, but your overall valuation will keep climbing 👍 And if you fall off the venture scale curve → that's okay ❤️ As long as you recognize where you are and you don't overload up your cap table - it can still be a very profitable exit for you -- ♻️ Repost to help a founder in your network Click 'visit my website' at the top of this post to register for my free Unlock your Series A session on how to navigate VC expectations in this market

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This should be a helpful reference for marketplace founders that might be on the fence about applying to Y Combinator. Aziz Alghunaim shares how he's not only benefited from it once, but now twice as a second-time marketplace founder building Nash. My quick takeaway from it is to apply.

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