By Julia Figueiredo, Director, LATAM at Partners for Growth
I was honored to have had the opportunity to champion the Latin American entrepreneurial ecosystem at the historic Indian Treaty Room of the White House discussing the progress of the ‘Americas Partnership for Economic Prosperity.’ Representing Endeavor Miami as a Board Member and Partners for Growth (PFG) as the Director of Latin America, I was pleased to share the work we are doing at both Endeavor and PFG to support high-impact entrepreneurs in the US and LATAM.
The initiative, led by Mr. Daleep Singh, Deputy National Security Advisor for International Economics in the Biden administration, brought together leaders across development finance institutions, private capital investors, and entrepreneurs. Attendees we have had the opportunity to collaborate with included Irene Arias Hofman, CFA, CEO of IDB Lab, Fabio Jose Fagundes, Chief of Financial Products & Services at IDB Invest, and Cate Ambrose, CEO and Board Member at the Global Private Capital Association. The meeting underscored the vital role of innovation and entrepreneurship in driving economic growth across Latin America, emphasizing four main tracks: entrepreneurship, infrastructure finance, nature-based finance, and digital workforce development.
PFG and Endeavor are aligned in our missions to support entrepreneurs and help develop innovation ecosystems. Over 20 years, Partners for Growth has committed USD 1.6bn in loans to over 250 companies globally. In 2020, PFG partnered with IDB Invest to form the Latin America Growth Lending Fund to finance tech and growth companies in Latin America, expanding funding solutions beyond the well-established venture capital and private equity markets. Since the partnership was initiated, we have together provided asset-backed debt and custom debt so support growth for six portfolio companies across the region, with a further two companies soon to be announced, totaling more than USD 150mm of capital committed to the region.
An Entrepreneurial Network Effect in Latin America
Successful tech hubs thrive on a network effect that fosters a cycle of innovation. When key elements such as talent, progressive government policies, and substantial investment converge, the impact is magnified.
Economic prosperity fosters national security and a highly educated and experienced workforce is indispensable for the growth of technology ecosystems. Historically, many talented individuals from smaller economies migrated to established tech hubs like Silicon Valley. However, we are now witnessing a reversal of this trend. Talented professionals are returning to their home markets, enhancing local ecosystems with their expertise and driving local innovation.
High-quality infrastructure, innovation-friendly policies, and supportive legal frameworks are vital for tech ecosystems. Similarly, emerging economies with supportive environments can rapidly develop local businesses that compete on a global scale. Access to both equity and debt financing is crucial for the sustainability of tech ecosystems. While venture capital is often highlighted, debt financing provides a vital alternative source of capital that complements equity financing.
This week’s gathering at the White House reinforced the commitment from global investors and policymakers to support Latin America’s economic development. At PFG, we look forward to continuing our collaboration with key stakeholders to leverage our collective strengths and drive sustainable growth and innovation across the Americas.
