Startup Latin America: Why the 1Mby1M Global Virtual Accelerator is a Game-changer for Latin America’s Ecosystem

The Accelerator Conundrumis a multipart series that challenges the prevailing wisdom of the tech startup ecosystem that entrepreneurs should Blitzscale out of the gate. Written by Sramana Mitra, the Founder and CEO of One Million by One Million (1Mby1M), the world’s first global virtual accelerator, it emphatically argues that a better strategy is to Bootstrap First, Raise Money Later, focus on customers, revenues and profits. 1Mby1M’s mission is to help a Million entrepreneurs reach a million dollars in annual revenue and beyond. Sramana’s Digital Mind AI Mentor virtually mentors entrepreneurs around the world in 57 languages. Try it out!

In the summer of 2007, I got a call from Pedro Ant, the then CFO and VP of Investor Relations of Mercado Libre that had just gone public on NYSE. Pedro told me that Marcos Galperin, his CEO, was an avid reader of my blog, and was inviting me to come to Buenos Aires for a week to run their strategic planning.

In November 2007, I spent a week in Buenos Aires working with the Mercado Libre leadership team, many of whom have since become leaders of the Latin America startup ecosystem.

At 1Mby1M, we have covered Latin America’s development with case studies of entrepreneurs like Marcos Galperin, Daniel Scandian, Sergio Furio, Asher Delug, and Sebastian Kanovich. 

From the vibrant tech scenes of São Paulo and Buenos Aires to the rising hubs of Bogotá and Santiago, the entrepreneurial energy in Latin America is undeniable. However, a dangerous fallacy has been imported from Silicon Valley and is being propagated widely by many local and international accelerators: the “Blitzscaling from the get go” philosophy. This model, popularized by Y Combinator, is fundamentally ill-suited for the complex, volatile, and fragmented markets of Latin America. 

The very concept of blitzscaling—prioritizing speed over efficiency to dominate a market at all costs—is built on the assumption of a robust and liquid venture capital ecosystem. Silicon Valley provides this. Latin America, with its economic instability, currency fluctuations, and political uncertainty, does not. When an accelerator forces a founder in Buenos Aires or Caracas to take a steep equity cut for a small seed round, it’s a lopsided deal. It pushes them to chase a mythical Series A that may never materialize, leaving them with diluted ownership of a company that is not yet fully validated, let alone ready to hyperscale. The outcome is often a spectacular failure, and a disillusioned founder who has given away their most valuable asset for a few weeks of mentorship.

The only proven alternative is to “Bootstrap first, raise money later.” This is the core of my methodology. It is a philosophy that empowers you to build a real business with customer revenue, not investor money. You achieve product-market fit, generate revenue, and prove your model before you ever step into a venture capitalist’s office. This approach builds a resilient company that is immune to the whims of the funding market. You are in control. When you do raise capital, it is from a position of strength and strategic necessity, not desperation. This is the path to building a truly great company.

The 1Mby1M mantra: Do not go to VCs as a beggar, go as a king.

1Mby1M vs. The Latin American Accelerator Ecosystem

This is where the 1Mby1M global virtual accelerator model becomes not just a viable option, but a necessary one for Latin America. While local accelerators provide a community and a physical space, they are trapped in a flawed paradigm. 1Mby1M provides a liberating alternative.

• No Equity Taken: We are a non-equity-taking model. We do not ask for a single percent of your company. This is especially critical in Latin America, where founders need to retain ownership to navigate unpredictable local markets and currency devaluations.
• Ultimate Scalability and Privacy: The Sramana’s Digital Mind AI Mentor is a game-changer for early-stage founders. It provides unprecedented privacy and scalability, allowing entrepreneurs to confidentially brainstorm, test ideas, and get strategic feedback 24/7. This is a crucial resource for founders at the idea, pre-product, and pre-revenue stages who need a private space to develop their business model before making it public. Also, the AI Mentor is available in 57 languages including Spanish and Portuguese, offering the continent’s startup ecosystem massive scalability.
• A World-Class, On-Demand Curriculum: Our 1Mby1M curriculum is a comprehensive, proven playbook for building a successful, profitable company. Unlike a fixed-term, cohort-based program, ours is continuous and on-demand. Our free roundtables are a no-risk way for any Latin American founder to get an initial taste of our strategic guidance.

Latin America’s entrepreneurial landscape is ripe for a new approach. The region doesn’t need more programs that replicate a Silicon Valley model that is ill-suited to its unique challenges. It needs a methodology that emphasizes revenue, sustainability, and founder control. It needs the Bootstrap First, Raise Money Later philosophy, and 1Mby1M is the only platform that provides it, empowering the next generation of Latin American entrepreneurs to build great companies that will last.

I’ve articulated extensively in my The Accelerator Conundrum blog series, the traditional support structures that have taken root here are often ill-suited to the long, arduous journey of building a sustainable company.

1Mby1M is a liberating alternative and/or supplement.

Latin American Ecosystem Summaries

• Brazil: The largest and most developed ecosystem in the region, with São Paulo as its undisputed hub. Fintech and e-commerce are key sectors, but the market is highly complex with significant regulatory and tax challenges.
• Mexico: A vibrant ecosystem with a strong focus on fintech and e-commerce, benefiting from its proximity to the U.S. and a large domestic market. The main hub is Mexico City, with a growing number of active hubs and a maturing ecosystem.
• Colombia: A rising star in the region, with its ecosystem centered in Bogotá and Medellín. The country has a growing number of unicorns and is attracting international attention, but it still faces challenges in creating a strong entrepreneurial finance system.
• Argentina: Known for a strong talent pool in engineering and a focus on deep tech. Despite a history of economic instability, its founders have built a resilient ecosystem with Buenos Aires as the main hub. 
• Chile: With a stable economy and strong government support, Chile’s ecosystem is a regional leader, particularly due to the Start-Up Chile program. The country’s small domestic market forces startups to think globally from day one.
• Peru: This emerging ecosystem is rapidly growing, especially in the fintech and e-commerce sectors, driven by a young population and increasing internet penetration. Government programs like StartUp Perú are actively fostering innovation.
• Uruguay: An oasis of political and economic stability in the region, Uruguay is a regional hub for software development and IT. Despite its small size, it has produced a unicorn and serves as a strategic launchpad for startups with a global vision.

We will double click down on each of these in subsequent discussions.

Photo Credit: Gerd Altmann from Pixabay

This segment is a part in the series : Startup Latin America