The next generation of Latin American fintechs to grab the attention of investors will be startups that facilitate access to the market for alternative capital and develop the cross-border payment model, according to Rafa de la Guía, a partner at emerging market investment firm Quona Capital.
De la Guía tells iupana that LatAm is in need of platforms that reduce friction in international transfers and open up access to capital markets and asset securitization. As a result, Quona is investing in companies that use blockchain and tokenization to create assets that can be traded on exchanges.
Making these innovative business models viable will require an evolution of the finance sector’s existing technological infrastructure, De la Guía said. “Much of the innovation is not going to be possible with the iron and pipes we have today,” he said.
Startups’ access to capital has tightened over the last year, fueling job cuts and strategic shifts, as investors seek out companies with sustainable business models and financial results, the executive said.
“Capital is the fuel for startups, but clients and the metrics are what’s important,” he said.
Quona’s $771 million portfolio includes investments in Creditas, Klar, Neón and Konfío. The firm closed 21 new deals last year, with an emphasis on MSME lending, personal finance, payments and embedded finance ventures, according to its 2022 impact report presented this week.