Month: September 2018

Magma Partners Invests in Cybersecurity Startup Kriptos

Kriptos is a cybersecurity startup that uses artificial intelligence to automatically analyze, classify, and label company documents to prevent data loss and protect crucial information.

Kriptos helps businesses save money by providing improved cybersecurity by identifying and protecting classified documents, and also teaches employees how to handle documents safely.

The company was founded in 2018 by Ecuadorian cousins Christian Torres and Alfonso Villalba and has rapidly spread from Ecuador to Chile, Colombia, Mexico and Peru within its first year of operations. 

Magma Partners invested in Kriptos in the pre-seed round with 3 other investors including Techstars and Kruger Corporation

Kriptos previously participated in the Techstars Barclay’s Accelerator Program in Tel Aviv, Israel, and in Start-Up Chile, and was selected by India’s Future Tech Festival as one of the 10 fastest-growing startups in the world in 2018. Kriptos currently works with over 58 companies in 5 countries.

Magma Partners Invests in BEXI

BEXI provides a smart design platform for marketing teams, offering products such as video content, digital advertisements, website design. 

Using data-driven design, BEXI creates high-quality products that ensure a unique and professional brand for marketing teams. With over 5,000 completed projects, BEXI is attracting clients with its flexible plans, affordable pricing, and quality products.

The startup was founded in 2016 by Rafael Arroyo and Cuco Vega, with offices in Guadalajara, Mexico, and San Leandro, California.

Magma Partners Invests in Peruvian Startup Chaty

Chaty is an online platform that sells and processes payments across social networks, such as Instagram, WhatsApp, and Facebook Messenger, through artificial intelligence technology.

With the aim of facilitating online transactions, their chatbots enable businesses to take orders and payments from customers with ease via instant messaging services.

Chaty allows customers to browse merchandise and make online purchases across social media channels. Customers receive immediate notifications of payments and can manage their purchases online. All payments and data are secured through SMS authentication managed by the ChatBots.

The Peruvian company was founded by Oscar Orlando Giraldo Castillo, Jorge Estrada, Luis Mayta, and Jorge Paredes in 2017. Magma Partners invested in Chaty in their seed round along with several Peruvian angels.

Chaty was a BBVA Open Talent finalist in 2018 and has recently completed Start-Up Chile, as well as receiving previous funding from Startup Peru.

Nathan Lustig’s Interview with Pedro Varas, CEO and Co-Founder of FounderList

Last month, I had Pedro Varas, the CEO of FounderList, interview me in Spanish on three topics: my personal journey, my view on the entrepreneurship ecosystem in Latin America, and vesting. You can watch the three trailers and find the links to the full interviews below. I hope you enjoy the videos.

Part 1. My Story

I was born and raised in Wisconsin. It wasn’t clear at first that I would follow the path to entrepreneurship since I studied political science in college. Then, in my freshman year, I couldn’t get season tickets for our football team,which upset me because I had been looking forward to the games quite a lot. I tried all means to find a ticket, and that is how I found out about a book exchange website at my university. I ended up buying the site with a friend and brought it to 175,000 users across  10 universities. After selling the site to another company, I started my second company, Entrustet, which aimed to resolve the issues of managing digital assets when someone died. This startup took me down South to join the pilot round of StartUp Chile, where my course changed. I eventually started my current career as a venture capitalist that bridges US and LatAm.

To view the complete interview please click here.

I also did a podcast in which Devin Baptiste from GroupRaise interviewed me in English. Check that out here if you are interested in knowing more details.


Part 2. Why Startups Fail

In this part, I talked about the startup ecosystems in LatAm, what will make an investor say no, why most startups fail, how I view the wage gap between US and LatAm, and which industries are the most promising for the region. When I first arrived in Chile, I saw there were many opportunities to improve the way business is done here. Following my entrepreneurial instincts, I stayed and became an investor. Fast forward to 2018, and things have improved a lot, yet there are still many opportunities. As the startup ecosystem continues developing, the time to invest in Latin America  is now. At the end of this interview, I recommend a daily practice to help every entrepreneur-to-be identify problems and create solutions.


To view the complete interview please click here.


Part 3. Vesting

Vesting is an important concept that many founders fail to understand. At Magma, we have rejected some good companies because they have founders who had left the company a long time ago but still owned a big share of the company. This is not fair to the founders who stayed and actually worked to make the company survive. In this video, you will find out what vesting is, why it is important, the difference between founder vesting and employee vesting, when to have an employee option pool and some cases.

To view the complete interview please click here.

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