Why did you decide to work at SP Ventures?
During the past 7 years, I have viewed the venture capital industry as an opportunity for creation, opening new markets, and reinventing businesses. After navigating the region for several years, I met the SP Ventures´ team and identified the following highlights: a passion for impact investing, depth of analysis of their investments, and a collaborative spirit. Today, I recognize that they are the most experienced agribusiness fund in LATAM.
I decided to join the team's vision because SP Ventures sees beyond any financial return. They are committed to investing in the most innovative startups that are truly revolutionizing the economy around agriculture as we have known it traditionally. Through their investing they are generating a positive impact on technological transition, adapting to risks such as climate change, and striving to ensure food security in Latin America.
I was inspired to learn that the investments made over the past 10 years are now the most relevant success stories in the region. Knowing that Brazil has made significant advancements over the last 40 years, transforming its food deficit into a surplus. Pioneering new agricultural techniques, and becoming a major reference in terms of adaptation. I see the potential to replicate this success with my integration into the team for Mexico and the rest of Spanish-speaking Latin America.
I decided to take this leap because I am convinced that LATAM is a very prosperous region and that by being able to invest in the biologicals, food security and climatech, we can achieve to have a more productive region.
How do you view the opportunities in Agfood and climatech in LATAM?
Human activity began altering the climate in the mid-19th century when the Industrial Revolution started releasing unprecedented amounts of carbon into the atmosphere. SP Ventures is working to mitigate some of the ensuing catastrophic climate change by investing in biologicals, food security, and sustainability startups capable of reducing carbon emissions in the region.
LATAM is one of the few regions left in the world with significant and unexplored agricultural territory. According to the world bank, agricultural and food exports from the region represent 16% of the world's total. Considering food imports, net foreign sales are 4%, and are projected to increase to 19% between 2018-2020 and 2030.
We face several challenges:
The market is fragmented among large, medium, and small farmers. Latin America's agricultural sector is unique because small farmers play a crucial role. The mix of small and large-scale farming varies greatly between countries, resulting in disparities in capacity, sophistication, and contribution to economic production. Currently, 50% of total production comes from 14 million small farmers, while large-scale farms play a vital role in Argentina, Brazil, and Uruguay. Other countries like Colombia, Mexico, and Nicaragua also contribute significantly.
The opportunity we are building aims to streamline cultivation processes, provide access to sophisticated and more competitive markets, and offer greater access to financial services. This will help small and medium-sized farmers in the region increase their crop productivity with more sustainable and environmentally friendly methods.
The region is privileged by its extensive territory, and it is crucial how venture capital funds allocate resources to meet the growing food demand while seeking to reduce the negative impact on the environment.
In your opinion, how is the ecosystem of agfoodtech and climatech in countries other than Brazil?
Brazil is a country that has proven to be resilient and progressive. Today, it serves as a clear example that with capital, cooperation among farmers, public institutions, private companies , economic cooperation agencies, education, and technological development, it is possible to transform a country's economic activity.
Today, Spanish-speaking Latin America represents a growing opportunity for innovation, access to new technologies, financial services, and more sustainable practices in all economic activities of the primary and secondary sectors. Due to its geographical location, altitude variation, and proximity to the tropics, the region offers a significant opportunity to continue innovating and contributing to global food security.
For Mexico, nearshoring presents an increasing opportunity to continue supplying the international demand for horticultural products, cereals, and tropical crops. Prominent Mexican industries are globally recognized, and it is essential to keep investing in new alternatives and innovative foods, as well as more efficient production processes with lower carbon footprints. Another major challenge for the region is increasing access to financial services and contributing to the Sustainable Development Goals (SDGs).**
Do you have a personal quote that guides your life?
A true leader acts with integrity, leads with compassion, and stays humble. Let these principles guide your decisions and inspire your team every day.
Do you have any hobbies that bring you joy?
I enjoy living life to the fullest. Since I was very young, I started running, and it remains one of my favorite activities today. I enjoy running marathons and triathlons, and I am currently preparing for an upcoming Ironman and an ultramarathon. I enjoy scuba diving and getting to admire our natural resources.
I find joy in the small and simple things that nature offers. I love taking advantage of the mornings to run and enjoy a sunrise, admire a sunset, and, above all, marvel at a starry sky.*
Interview conducted with Vaness Bello
Vanessa Belo is a Principal at SP Ventures, São Paulo, Brazil.
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