Evaluating Investment Risks in LATAM AI Startups: Ranking of Investment Potential and Framework for Valuation
The growth of the tech startup ecosystem in Latin America (LATAM) is driven by innovative entrepreneurs addressing market needs across various sectors. However, these startups encounter unique challenges and risks that require specific management approaches. This paper explores a case study with the Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) metrics within the context of the online food delivery industry in LATAM, serving as a model for valuing startups using the Discounted Cash Flow (DCF) method. By analyzing key emerging powers such as Argentina, Colombia, Uruguay, Costa Rica, Panama, and Ecuador, the study highlights the potential and profitability of AI-driven startups in the region through the development of a ranking of emerging powers in Latin America for tech startup investment. The paper also examines the political, economic, and competitive risks faced by startups and offers strategic insights on mitigating these risks to maximize investment returns. Furthermore, the research underscores the value of diversifying investment portfolios with startups in emerging markets, emphasizing the opportunities for substantial growth and returns despite inherent risks.
Code (0)
등록된 구현이 없습니다.
Similar Papers 제목 키워드 기반
AI Thrust: Ranking Emerging Powers for Tech Startup Investment in Latin America
Artificial intelligence (AI) is rapidly transforming the global economy, and Latin America is no exception. In recent years, there has been a growing interest in AI development and implementation in the region. This pape…
The Effect of Antitrust Enforcement on Venture Capital Investments
This paper studies the effect of antitrust enforcement on venture capital (VC) investments and VC-backed companies. To establish causality, I exploit the DOJ's decision to close several antitrust field offices in 2013, w…
Recommending investors for new startups by integrating network diffusion and investors' domain preference
Over the past decade, many startups have sprung up, which create a huge demand for financial support from venture investors. However, due to the information asymmetry between investors and companies, the financing proces…
validDiscrimination in the Venture Capital Industry: Evidence from Field Experiments
This paper examines discrimination by early-stage investors based on startup founders' gender and race using two complementary field experiments with real U.S. venture capitalists. Results show the following. (i) Discrim…
Follow The Money: Exploring the Key Factors Influencing Investment in African Startups
The African continent has witnessed a notable surge in entrepreneurial activity, with the number of startups and investments made in the ecosystem growing significantly in recent years. Against this backdrop, this paper …