Thousands of new startups are created each year. The 2024 Global Startup Ecosystem Index highlighted 77 up-and-coming cities in 11 Latin American countries, countries such as Brazil, Mexico, Chile, Colombia and Argentina now developing more established tech hubs. For founders from the region with great ideas, most will inevitably face fundraising challenges before they become successful startups.
While there is no magic formula, there are variables that founders can take into account when interacting with potential investors. Contxto interviewed Cristian Olea Simunovic, Managing Partner of Manutara Ventures, one of the most important venture capital funds in Latin America, to understand his perspective on investing in startups from the region.
According to Olea, what should really stand out is the founder’s drive and authenticity. “Maybe they have personally experienced a problem or know someone who has faced it, and that’s why they are determined to solve it. It’s not just about generating revenue, although that’s important, but because they are truly committed to the impact their solution can generate,” he explained.
In addition to passion, the ability to sell is another key skill. Founders must constantly convince investors, customers and talent of their company’s vision. “The best founders attract the best talent to their team, and that makes a big difference,” noted Olea Simunovic.
While direct industry experience can be valuable, Olea stresses that it is not always essential. “Some entrepreneurs have an innate ability to build companies, even without a specific technical background. However, understanding the customer and the market in depth is indispensable. That clarity makes it easier to open many doors,” he added.
Common mistakes when pitching and managing startups
Even if a founder has an innovative idea, a clear and convincing presentation is key to attracting investment. For Olea, one of the most common mistakes is spending too much time describing the general problem and not focusing on the specific solution proposed by the startup. “If it’s a sustainability solution and they spend 15 minutes explaining the climate crisis, it’s not necessary. We know the problem exists. The important thing is how they are going to solve it,” he said.
As for managing early-stage startups, the executive warned about the risk of accepting money from any investor without assessing strategic alignment. “Money can dry up, but investor support should be long-lasting. A good partner can help with networking, hiring and scaling the business,” he explained. He also emphasized the importance of investing in the right talent and not opting for cheaper options that may limit long-term growth.
Finally, he pointed out that flexibility is essential: “If an idea is not working, it is not a failure, but an opportunity to redirect the focus. Talk to clients from day one, validate your proposal, and if necessary, adjust your strategy quickly.”
Driving innovation in Latin America
With the innovation gap between regions such as the United States and Latin America, Olea Simunovic noted that local challenges also offer unique opportunities.
One of Manutara Ventures’ key achievements in 2024 was supporting 20 startups in their internationalization in collaboration with CIC Miami, consolidating its position as a leader in venture capital in the region. In addition, the launch of a new fund of more than USD $100 million in 2025 reflects its commitment to startups in scaling stages (series A and B), something scarce in the regional ecosystem.
Finally, for Olea the key to closing this successful year has been consistency. “Since 2017, we have worked to build solid due diligence processes and support networks for startups. This not only guarantees financial returns, but also strengthens the innovation ecosystem in Latin America,” he concluded.
