Manutara Ventures

Cristian Olea Simunovic brings over 15 years of entrepreneurship and technology experience. As Co-Founder and Managing Partner at Manutara Ventures, he is instrumental in structuring the firm’s fundraising efforts. 

Prior to this, he co-founded Ionix Mobile Payment, a leading player in Chile's mobile payments and banking security sector. His entrepreneurial journey began with Multiecast Mobile Messaging, the first company to offer value-added services and SMS platforms across Chile, Mexico and Brazil. He has also played a pivotal role in launching Qin technology and held the position of Country Manager at Waze Chile.

Dedicated to driving innovation and fostering growth in the tech industry, Cristian is a skilled civil engineer who completed a corporate finance and innovation diploma from a prestigious institute. He also pursued studies in telecommunications at UPC in Barcelona. 

In an interview with StartupCity, Cristian Olea Simunovic sheds light on his journey as a venture capitalist, discussing the emerging trends in Latin America’s startup sector.

How would you describe your journey in the startup industry, including your current roles and responsibilities with Manutara Ventures? 

I began my career as an engineer in 2003 with a strong focus on marketing, finance, computing, and processes. Later, I transitioned into entrepreneurship within the mobile value-added services sector of the telecommunications industry. 

As one of the early founders of a technology company, we specialized in SMS services, mobile messaging, ringtones and other services before the advent of smartphones. In 2007, my co-founder and I successfully sold the company to a major Australian group listed on the Australian Stock Exchange.

Following this early exit, I ventured into founding a mobile payment company, one of the pioneers in Chile. This venture involved collaborations with various banks and companies like Shell for gas payments. In 2015, this company was acquired by a prominent Chilean bank and its investors.

Having experienced profitable exits with two startups, I realized the limited exposure to venture capital in the industry. This led me to pursue programs at Stanford University to understand the dynamics of ecosystems in Silicon Valley. In 2017, I co-founded Manutara Ventures, a leading venture capital firm in Latin America, with Ricardo Donoso, another accomplished entrepreneur. Over the years, we have actively invested in more than 25 companies.

“Our focus remains on utilizing technology to drive engagement by enhancing communication, growth and development, creating and sustaining an engaged workforce.”

Our focus has predominantly been on the Latin American market, with Chile, Colombia and Mexico being our primary investment areas. We have observed significant growth and potential in these regions, driving our commitment to fostering innovation and supporting emerging startups.

Please provide an overview of the current trends in the venture capital landscape, including any additional insights you would like to elaborate on.

One significant observation in the Latin American startup ecosystem is the disparity between talent distribution and available opportunities. Despite the region’s burgeoning startup scene, talented entrepreneurs often face significant challenges in accessing funding compared to more established markets like the U.S.

Given the large unbanked population and limited access to traditional financial services in Latin America, this funding gap is evident in the fintech sector. The emergence of neobanks and digital banking solutions highlights the potential for innovation in addressing these issues, especially in private lending for individuals and small to medium-sized enterprises. Fintech innovations hold promise for driving greater financial inclusion and economic empowerment across the region.

Another noteworthy trend is sustainability and impact investing, with affluent individuals and family offices increasingly allocating capital to address social and environmental challenges. This reflects a growing awareness of responsible investment practices and positive societal impact.

The health tech sector is experiencing rapid growth, accelerated by the COVID-19 pandemic, which highlighted the critical need for healthcare innovation. Latin America boasts a wealth of talent in scientific research and development, supported by government funding and university initiatives. It has immense potential for improving healthcare accessibility and delivery throughout the region.

E-commerce and last-mile delivery are also gaining momentum, fueled by changing consumer behaviors and increasing digitalization. This underscores the importance of adapting to evolving market dynamics and leveraging technology to meet consumer needs efficiently. 

Collaboration is key to fostering growth and innovation in this evolving Latin American venture capital landscape. Initiatives such as venture capital summits and strategic partnerships between accelerators, investors, corporates and government entities are essential for nurturing startups and driving ecosystem development.  

As Latin America’s startup ecosystem matures and attracts attention from investors, how do you foresee the region evolving in the coming years?

AI is becoming ubiquitous across industries, powering innovation in Latin America’s technology landscape. An increasing number of companies are incorporating AI components into their operations, whether AI-powered programming tools or advanced algorithms for financial analysis.

There is a noticeable uptick in interest from traditional investors such as JP Morgan and Morgan Stanley in gaining greater exposure to the Latin American market. This heightened appetite for investment stems from recognizing the region’s vast economic growth and innovation potential. As investors aim to benefit from these opportunities, there is a strong optimism about the potential returns Latin America can offer.

In the next couple of years, we anticipate a resurgence in record investment levels as the region continues to position itself as a prime destination for investment and innovation.

Is there any advice you would like to share with your fellow investors in the industry, drawing from your experiences?

I recommend establishing local connections or having a strong presence on the ground for investors. Despite similarities between countries, each has its unique regulatory environment and cultural nuances. For instance, navigating fintech regulations in Mexico differ significantly from those in Colombia or Chile. Understanding these differences is crucial for successful investments in Latin America.

As for entrepreneurs, it is paramount to adapt to the shifting market conditions regarding capital costs. Investors now prioritize startups with robust financials, emphasizing strong cash flow management and a deep understanding of unit economics. Building a talented and cohesive team is also crucial. In early-stage investing, the team’s capabilities often determine success more than the initial business proposition. I recommend assembling a skilled and complementary team to navigate challenges and drive growth effectively.