Sramana Mitra: What is the scale of the consumer internet population right now in Brazil? Daniel Ibri: We have passed the mark of more than a smartphone per person. That shows you that a huge number of the population is connected. We have very good broadband in most of the country. A lot of people
Sramana Mitra: Are you looking for unicorn-style investments or are you also interested in the smaller niche plays that are going to have smaller exits. Let’s say $50 million to $100 million exits. Daniel Ibri: We are interested in the smaller ones. I honestly believe that’s a very smart niche to be at this time.
Daniel Ibri: If you go to a retail shop, you can normally pay for your high end equipment in installments. It’s really common for the Brazilian market. These retailers end up giving credit, direct to consumers, out of their own balance sheet. The delinquency rate is really huge. It’s something around 30% to 50%. The
Sramana Mitra: You have a very interesting investment thesis. What stage do you come in? Daniel Ibri: We normally invest early stage. It’s normally pre-A, A, or post-A. It’s normally around Series A and we normally co-invest with local funds. We try not to lead the rounds. We co-invest with local VC’s and angels. We
Responding to a popular request, we are now sharing transcripts of our investor podcast interviews in this new series. The following interview with Daniel Ibri was recorded in April 2019. Daniel Ibri, Co-Founder and Managing Partner at Mindset Ventures, talks about his firm’s investment thesis in enabling US and Israeli companies to enter Brazil. Sramana