E27: Fernando Pontaza of Invariantes on Why 25% IRR is the Gold Standard in Venture

Key Points

• Fernando discusses creating a diversified venture capital index by investing in various funds across different geographies, sectors, and narratives to capture the average IRR of the asset class while also being active LPs who contribute to their fund managers' success and gain access to their deal flow.
• Invariantas, Fernando's venture capital firm, was established to fill a gap in Guatemala for investors and founders seeking venture capital, leveraging the success of companies like Duolingo to inspire public interest and utilizing a hybrid model of investing in other funds and direct deals to mitigate risk and ensure returns.
• Fernando emphasizes the importance of diversification in venture capital investments for Latin American investors, advising against concentrated direct investments in local companies due to higher risk, and suggesting starting with a fund that has exposure to a broader range of assets and geographies for a better initial experience with the asset class.