Brought together by tech, kept together by culture: Miami’s protagonistic role in LatAm’s startup story

By Riley Kaminer

More than a gateway to the Americas, the Greater Miami region is increasingly supporting and benefiting from the LatAm innovation. We spoke to some of the main players to learn how.

Latin America might very well be on the precipice of a tech revolution. The region now has at least 40 startup unicorns, up from just one in 2016. The entire region has a population of 665 million people and a GDP of $6 trillion. Across all digital adoption trends – mobile phones, internet, you name it – Latin America is seeing hyper growth. Already with 1,000 VC-backed startups, the region is starting to hit its stride and has the potential for much more soon to come.

If Miami is really the capital of Latin America, as it is so often described, then what role do we have to play in this growth?

To get to the bottom of it (or at least somewhere close), we sat down with some of the players directly in the action.

Let’s start with the context

“Latin Americans used to come to Miami primarily to invest in real estate or keep their money safe,” Mana Tech’s Head of Ventures, Etienne Gillard, told Refresh Miami. “Anyone who would become a bit successful would think, ‘once I get rich, I’ll go to Miami,’ the city that is a mix between LatAm and the U.S.”

“10 years ago, thanks to the amazing success in San Francisco and New York and everywhere in the world, people started investing more and more in startups – and in Miami.” So, in Gillard’s view, it was only a matter of time until this converged. And now he sees this firsthand on a daily basis, since a large part of his role is supporting LatAm entrepreneurs who want to enter the U.S. market through Miami.

“It really makes sense that Miami should be a big venture capitalist spot,” he said, noting its location connecting the US to the rest of the Americas as well as Europe. The quality of life is high and it is still affordable relative to other top tier global cities.

And then came Covid.

“People started moving to Miami because it was an open city and the weather allowed people to be outside,” explained Gillard. “Many people thought ‘well, okay, I’m moving just for the Covid period, and will go home after.’ And some did, but many did not – and many people still keep coming.” Political and economic instability across LatAm only added fuel to the fire.

Access to Investors + simplified customer acquisition = success

“Miami is a great spot,” Draper Cygnus managing partner Valentina Terranova asserted. Terranova moved to Miami from her native Argentina around a month ago. Why? Two main drivers.

First is our ecosystem of investors. On top of our ever-growing pool of local dealmakers, having a presence in Miami gives Latin American founders easier access to investors across the U.S.

Second: accessing new customers. “Miami is a bridge for Latin American startups to get U.S. customers. If you can get sales here, it’s good proof of product-market fit to enter the entire U.S. market.”

Terranova works with DeepTech companies – a sector for which she says it is extremely important to penetrate the U.S. market. She is not concerned about our lack of a DeepTech scene compared to other major American cities. “The great thing about Miami is that it is a place for a soft landing,” she said, including balancing both a founder’s personal and professional life. “People feel like they’re at home here.” From Miami, founders can visit wherever they need to.

Miami is a practical option for efficient business across borders in LatAm

“If you have business in Latin America, it’s easier to have everyone fly to Miami to take meetings,” noted Fen Ventures Managing Partner Cristóbal Silva Bengolea.

Silva is a relatively new Miamian – and is still somewhat surprised to have ended up here. “We knew we needed to have a base in the US,” said the Chilean native, “and for years, we thought that base could have been Silicon Valley.”

The pandemic, however, made Miami seem like a more attractive option. “Miami is booming,” he said of the influx of talent and companies and capital.

“When companies start to expand, they need to look for capital. You can skip going to all the different cities and just go to Miami, and 80% of the funds you’ll want to speak to will have a presence here. In a week, you’ll cover all the major LatAm funds – and then you can fly to New York to do the rest.”

From beach holiday destination to serious tech hub

On top of co-founding Miami startup Rewardsweb, Rodrigo Rodas is also a Managing Partner at Coconut Grove-based IDC Ventures, a VC that invests in fintech and marketplaces and has a deep footprint across Latin America.

Rodas underscored the monumental shift that Miami has experienced, having gone from a transient tourist town to a place for serious business. “More and more, people are putting down roots here.”

That’s especially true for businesses. “A lot of companies have their LatAm headquarters in Miami,” he said. He noted that this puts Miami companies at a distinct advantage, explaining that he was able to connect two startups to the Visa’s Miami-based LatAm team – ultimately in resulting in new partnerships.

“That’s just one example of things that can happen when you put entrepreneurs together in the same place,” he said. “Regardless of what type of industry you’re in, Miami makes sense because it’s where the investors are, where the contacts are, where business is made. You can have lunch with somebody from Brazil, have breakfast with somebody from Argentina. It’s powerful to have all this knowledge concentrated in one single place.”

That’s the theory… now here’s the practice

Of course, countless South Florida startups have put all of these ideas into practice. Here’s a sample of a few:

Lazo, originally from Argentina, has brought its startup back office solution stateside.
Marco just raised $12 million to further develop solutions for LatAm’s SME exporters. Cargobot is another company in a similar space.
Digital out-of-home advertising demand-side platform Beeyond Media, with roots in Argentina, is spearheading its U.S. expansion through Miami.
Miami is home for Osigu, which is innovating in LatAm’s healthcare industry.
Ecuadorian Easymetering is leveraging their Boca Raton HQ to drive expansion of its smart grid solution.

And many, many more to come – we’re sure.

Photo at top of post is from a Mana Tech Miami Immersion Program with Latin American founders in 2023.

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Riley Kaminer

I am a Miami-based technology researcher and writer with a passion for sharing stories about the South Florida tech ecosystem. I particularly enjoy learning about GovTech startups, cutting-edge applications of artificial intelligence, and innovators that leverage technology to transform society for the better. Always open for pitches via Twitter @rileywk or www.RileyKaminer.com.