Big ideas from the conversation with Susan Segal, CEO at Americas Society/Council of the Americas: Pioneering LATAM Venture Capital and Why the Region Will Thrive with AI

It's incredible to see how much the Latin American startup ecosystem has grown. With 26 tech unicorns, including local leaders such as Creditas, Neon, Clip, and QuintoAndar, as well as regional and global giants like Mercado Libre, iFood, and Wildlife Studios, the transformation is truly astonishing. Approximately $28.2 billion in venture capital has flowed into the region over the past three years. It's hard to believe that back in the late 1990s, the tech scene here was nearly nonexistent, with investments primarily focused on traditional projects like financing railroads in Brazil.

My guest this week on The J Curve, Susan Segal, now leading Americas Society/Council of the Americas, was pivotal in pioneering early-stage tech investing in Latin America. She was introduced to the idea by working with Fred Wilson of Flatiron Partners (now founder at Union Square Ventures, one of the top VC firms in the US). Together, they evaluated an investment in StarMedia, which became one of the first major tech ventures in the region. The investment in StarMedia was driven by the vision of democratizing information in Latin America, a region traditionally dominated by a small group controlling most information flow. StarMedia aimed to be the Yahoo of Latin America, providing equal access to information and transforming the region.

Following StarMedia, Susan and her team at Chase Capital Partners invested in several other tech companies, including Patagon and Mercado Libre. These investments were part of a broader strategy to support and nurture early-stage tech companies in the region. Susan's work extended beyond just providing capital. She played a significant role in building the entrepreneurial ecosystem by supporting organizations like Endeavor, which fostered entrepreneurship and innovation in Latin America.

Additionally, Susan has been a strong advocate for increasing the representation of women in venture capital and entrepreneurial roles, recognizing the positive impact of diverse perspectives on business success.

A huge thank you to my former guest and now dear friend, Michele Levy for introducing me to Susan. This conversation wouldn’t have happened without Michele’s introduction.

Here are the six big ideas from my conversation with Susan:

1️⃣ A rare blend of visionary entrepreneurship and exceptional management is what defines great entrepreneurs

Great leaders recognize the need to grow and evolve alongside their companies. Their ability to attract top talent and build strong teams, combined with their flexibility and adaptability to changing market conditions, is crucial for sustained success

2️⃣ Diversity in leadership and teams leads to better results

Susan underscores the importance of increasing the representation of women in venture capital and entrepreneurial roles based on merit

3️⃣ Embracing opportunities and seeking mentorship are invaluable steps towards achieving professional success

Susan credits much of her success to influential mentors who recognized her potential and gave her the opportunities to prove herself. Key figures include Bill Rhodes, then the head of Northern Latin America and the Caribbean, and Martha Muse, one of the first female members of the New York Stock Exchange board. Muse, in particular, encouraged Susan to stand up for her rights and supported her through various challenges

4️⃣ The future of Latin American entrepreneurship lies in its ability to think and act globally

With a growing number of founders setting their sights on international markets, supported by a robust and evolving ecosystem, Latin America is poised to become a significant player on the global entrepreneurial stage.
This shift towards a global perspective not only enhances the potential for local startups but also positions the region as a hub for innovation and competitive business practices

5️⃣ Susan's success in building high-performing teams can be attributed to her strategic hiring practices and leadership style, which prioritize talent, diversity, and entrepreneurial spirit

Susan emphasizes the importance of hiring individuals who are smarter than herself and possess a strong entrepreneurial drive. She believes in creating space for young, talented individuals who are eager to take initiative and bring fresh, creative ideas to the table. This approach ensures that her teams are not only competent but also innovative and forward-thinking

6️⃣ Good governance practices are essential for the success of tech companies

Susan stressed the need for companies to practice good governance early on, which later facilitated smoother transitions when going public

Susan Segal's reading recommendations for entrepreneurs emphasize staying informed and understanding global trends. She recommends reading daily newspapers including Financial Times, Wall Street Journal, Washington Post, New York Times and Latin American newspapers (e.g., La Nación for Argentina, or other relevant local papers depending on the country)

You can watch the full interview with Susan on Youtube 👀👇🏻

Or listen / watch the episode on Spotify 🎧

Before you go, here’s some content that I’ve been exploring recently:

Fantastic conversation between Martin Escobari and Marcelo Claure - love the conversation around the transformative impact of substantial capital inflows on Latin America's innovation and growth, the strategic opportunities post-market corrections, and the region's pivotal role in the global energy transition

Invest like the best with Pat Grady, growth investor at Sequoia - I appreciate how Pat emphasizes the importance of reading people in growth-stage investing and prioritizing strong teams over just quantitative metrics

Thanks for reading,

Olga