New year, new us, new ways to despair over market uncertainty constantly and eagerly. Yay! ✨
Ok, ok, let's not be gloomy about it. How about we try new approaches to this grand slowdown we're all facing in Latin America?
If you come to think about it, these are the best times for you to REALLY show what you're made of. As the great Brazilian racing driver, Ayrton Senna, said:
"You cannot overtake 15 cars in sunny weather, but you can when it's raining."
For Brian Requarth, Gina Gotthilf, and Yuri Danilchenko, Latitud co-founders and part-time harvesters 🍇, the economy is made of boom and bust cycles – and yup you guessed right, we're currently in the bust phase.
But they have some words of wisdom and encouragement for us today, as they share why this shouldn't be bad news.
Go grab a glass of your fav wine 🍷
"You've probably heard investors group startups into vintages. Just like wine, some seasons yield better results than others. What you might not know unless you're a wine expert is that growers actually give their grapes some tough love, making them work for their living.
Giving grapes an easy life on fertile soil won't make them the best they can be. Only when they're forced to dig deeper for nutrients and water can they develop the strategy and strength to focus more on growing great grapes, rather than the glitz and glamor of a surrounding canopy of leaves.
And that's exactly what startups are being forced to do.
Whether it’s high season or low season, the recipe for a great startup remains the same: an obsession about a problem, a market that actually exists, an amazing team, and enough capital to get you to scalable profit.
In a harsher environment, the last ingredient is harder to get. We start seeing startups struggling to raise or realizing they only have 12 months left of runway and won’t be able to figure out product market fit in that time.
At times like these, startups need to pay less attention to their canopies and more to their roots. There’s no way around it – now is the time to assess each line item and evaluate every effort in order to extend your runway so that your startup can survive in any weather conditions."
🚀 Now more than ever, the Latitud team is happy to support all startups in their journeys and lend you a helping hand, whether it be through world-class programs and community or by helping you set up the most efficient corporate structure.
We’re here on a mission to elevate the LatAm startup ecosystem in the good times and, especially, in the bad times.
Raise your glass for 2023 with us and forward this to a founder who needs it 💙
"The fundraising market is cooling and has yet to hit bottom, but a recovery could come in the second half of next year, investors say." – Bloomberg.
"With VC funds in the US alone holding an estimated $290 billion in collective reserve, seed funding opportunities in LatAm may be the place to bet in 2023." – Latamlist.
"From mobile being everywhere to macroeconomics impacting the startup life, you can already take note of these trends and apply our advice in 2023." – Latitud.
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