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2013 Latin America Internet Market Research & Outlook
Latin America: A Rising Economic Power
November 2009 September 2010 November 2012
The time is NOW: Consumers are here today• Per capita disposable income: $5700 (2.5 X China, 4.5 X India)
Source: Alta Ventures
What is fueling this economic growth?
External Factors (Low interest rates and QE wars)
1. Foreign Direct Investment (FDI) - Experiencing record levels - $150 bn in 2012
2. Commodity prices are at all time highs
Latam's commodities are at an all time high, thus helping exports.
Source: http://www.indexmundi.com/commodities/
As a consequence...
VC investors are looking at LATAM now.
“Latin America is cited by 55 percent of VCs as an area of increasing U.S. investment in 2013 followed by China (40 percent) and India (37 percent).”
Dow Jones and the National Venture Capital Association Survey (December 2012)
Internal factors helping growth...
That Boost FDI flows:• Unprecedented Political Stability• Economic Openness • Fiscal prudence
That heat up the market:• Record LOW unemployment numbers• Low interest rates: Easy Credit for consumption.
4 of top 10 countries most optimistic about biz in 2013 are in LatAm. Peru (#1), Chile (3), Brazil (6), Mexico (8)
Strong optimism of Latin American Businesses
Latin America will continue growing at higher rates than developed economies...
Source: IMF World Economic Outlook
Top Latin American economies will continue to show strong GDP growth
Country 2012-2015 GDP Growth (PPP)
Peru 24.26%
Chile 19.40%
Colombia 19.08%
Brazil 17.92%
Argentina 16.25%
Mexico 15.55%
Venezuela 14.78%
Source: IMF World Economic Outlook
Latam: Strong outlook, but many challenges lay ahead... that means countless opportunities ;)
Currency Appreciations... Brazil is getting TOO hot!
Note: figures in USD - Dec 2012 Source: The Economist, Apple, Honda and Colliers Intl
Latam is one of the most promising emerging markets in the global online industry
Latam's Internet population more than doubled in the last 5 years
2007-2012 Internet Population Growth
Source: Internet World Stats
And Latam’s Online Populationis far from saturation
Internet penetration in South America is still relatively smallOnline Populations of Latam will boom with increasing internet penetration
Source: Internet World Stats December 2012
Latam: more mobile phones than peopleAccording to Informa Telecoms & Media, Latin America reached more mobiles than people in 2011.
Prepaid represents over 80%
x11 increase in 10 years!
Latam’s e-commerce is taking off...
Source: eMarketer
B2C e-commerce sales in Latin America
Mobile e-commerce: 2012 3% of total e commerce transactions were complete via a mobile device
It’s not a matter of size…It’s about development• Infrastructure• Technology adoption• Supply of goods and services• Buying patterns and cultures• Banking and credit card penetration
Brazil is leading the way
Largest and most advanced market in the region
E commerce => 2012: $19.8 bn - 2015: $29.8 bn 50% GrowthOnline buyers => 2012: 23.1 M - 2015: 31.6 M
It will account for +50% of total B2C e commerce sales in LatinAm by 2013
According to IAB Brazil, digital advertising grew 40% in 2012 and is expected to grow another 80% over the next 3 years.
Source: eMarketerhttp://www.emarketer.com/Article/Growth-Argentina-Mexico-Drives-Ecommerce-Latin-America/1009339
Credit Card PenetrationBrazil is the clear leader, but it’s still far behind penetration in developed countries
Latam Digital Advertising still far behind US and Europe, but booming
Online ad spending will more than triple over the next five years, growing from $2 billion in 2010 to $6.7 billion in 2015. (eMarketer)
Source: eMarketer http://www.emarketer.com/Article/Emerging-Markets-Drive-Worldwide-Total-Ad-Spend/1009216#1uz7SX3F9DrDER9O.
99
Mobile Marketing is still in infant stages but showing strong signs of growth
Source: eMarketer http://www.emarketer.com/Article/Worldwide-More-Money-Goes-Mobile/1009582
Mobile Marketing is still in infant stages but showing strong signs of growth
Source: eMarketer http://www.emarketer.com/Article/Worldwide-More-Money-Goes-Mobile/1009582
Mobile market: very different realities in each country
Source:icrossinghttp://connect.icrossing.co.uk/wp-content/uploads/2012/02/iCrossing_Mobile-marketing_2012_V2.gif
Average usage in Brazil, Mexico, Argentina, Colombia outpace global average
Latam's Internet User Profile: Highly Active
Source:comscore
Latam's Internet User Profile: Younger Audience15-24 year olds in Latin America are the heaviest Internet users, outpacing every other age group as well as the global average for the age group
Source:comscore
Latam's Internet User Profile: Social Network #1 Activity
Source:comscore
5 of the most engaged countries in the world for social networking are in Latin America
Accelerators and Incubators Boom in Latam
Start Up Chile: Government program to attract world-class early stage entrepreneurs to Chile
21212: Accelerator looking for entrepeneurs that can replicate proven business models in Brazil
NXTP Labs: Startup accelerator focused on Spanish-speaking Latin American technology companies
Startup Farm: Biggest startup accelerator in Brazil with over 100 accelerated startups
Wayra: Telefonica's seed-stage startup funding arm, with presence in 13 countries in Latam and Europe
Founder Institute: Early-stage startup accelerator and global launch network with offices in Colombia, Peru, Mexico and Brazil
Aceleradora.net: Founded in 2008 to back startups with management and seed capital in Brazil.
Private Equity and Venture Capital Investments Rise in Latin America.
$7.9 billion committed in 2012 (21% over 2011)
Some examples:● Dafiti raises $45 million in August (JP Morgan) and $65 million in
December (Quadrant Capital)● WPP acquires 20% of Globant for $70 million USD● Navent raises $30 million from Riverwood Capital and Tiger
Global Management● Baby.com.br raises $16.7 million from Accel Partners
Source: Latin America Private Equity and Venture Capital Association
Increasing interest from US & European investors
● July 2012: Redpoint e.ventures raises $130 million fund for Brasil
● August 2012: Mexican.vc bought by 500 Startups
● August 2012: Alta Ventures raises $70 million fund for Mexico
● September 2012: Amerigo (Telefonica) $378 million fund for Latam
Latam Vibrant tech community is fueled by great events and organizations
Events● Redinnova Sao Paulo http://www.redinnova.com/sao-paulo
● Founders Forum Rio http://foundersforum.eu/content/events
● e-CommerceDay http://www.ecommerceday.org
● TNW Conference Latin America http://thenextweb.com/conference/latinamerica
Organizations● Endeavor: http://www.endeavor.org● EO: http://www.eonetwork.org
Some great tech/startup blogs to follow in Latam
● The Next Web http://thenextweb.com/la
● PulsoSocial http://pulsosocial.com
● Uberbin.net http://www.uberbin.net
● Startupi http://startups.ig.com.br
● Webholic http://webholic.com.br
● ALT1040 http://alt1040.com
● Loogic http://loogic.com
• Started in 2002 with offices in Sao Paulo, Mexico and Buenos Aires• 6 active portfolio companies & 95 talents• Raised $6million in 2008 from VC Dn Capital, Fabrice Grinda, Martin Varsavsky, Jose Marin, Romero Rodrigues...• Great Place to Work – 08, 09, 10, 11 and 12
Fnbox is a Latin American technology company focused on creating, accelerating and scaling Internet businesses
We made this presentation to:• Share the knowledge• Share our experience
• Shameless promotion of Fnbox and businesses ;)
Gustavo Victorica Rodrigo TeijeiroCFO of Fnbox.com CEO of Fnbox.com@jotecito @[email protected] [email protected]
Any comments, corrections to the presentation? Just shoot us an email.
