Cheats for Argentinean entrepreneurs from Marvin Liao, Silicon Valley 500 Startups Accelerator Partner

Marvin Liao He has spent more than five years investing in growth-stage and high-growth companies as a partner of 500 Startups, one of Silicon Valley's leading investment funds. This week, Liao was in Buenos Aires as one of the exhibitors at Endeavor Experience, where encouraged Argentine entrepreneurs to "think big" to build global businesses.

As a venture capital firm, 500 startups support companies around the world. Since its creation eight years ago, has invested in more than 2,200 companies through four global funds and others dedicated to specific markets. In addition, they have activity acceleration programs that, for four months, help them to develop digital marketing, acquire new customers or attract more funds.

– What requirements does a company have to fulfill to receive investments from 500 startups?

-For the program we have in San Francisco we are looking for companies that want to be global. In Argentina, for example, COR (a tool created allows agencies, studios and producers to predict the profitability of each project used in eight countries). Many of his clients are in the United States and the team is based in Argentina.

– How much does it take for companies in Argentina or Latin America to adapt to the way they work in Silicon Valley?

-A foreign company, or even American, but not Silicon Valley, it takes between 3 and 4 weeks to adjust to the rhythm. We work hard and the environment is ultra competitive. I moved from Canada to San Francisco 20 years ago and it was a culture shock.

– And what are the main differences?

-When you operate in a highly competitive environment, such as New York or San Francisco, you need to work at a higher level. One of the challenges is the sense of urgency. What I see in startups that are not from Silicon Valley, is that they take their time and do not realize how the prospects are competitive.. At the beginning of a start-up, you have to spend a lot of time researching and increasing critical mbad. The first 2 or 3 years are crucial for starting a business. This lack of sense of urgency is sometimes a problem.

-What advice can you give to an Argentine startup?

-I tell startups in Argentina or Canada to think big from the beginning. Many of the creators of Argentinian, Canadian or European companies are generally as good as Americans. They can compete with anyone, but do not think big and do not spend too much time thinking about a strategy for their consumers., focus more on the product or technology when what really matters is the problems the consumer faces or how to do it so that the products reach him in the fastest and most economical way possible.

-A good time for an Argentine company that seeks to be global?

-The Argentine entrepreneurs I met are very intelligent and I think they are often limited. They think of what is comfortable, the market of Argentina or neighboring countries, but this can be a mistake. It is necessary to think globally from the beginning although it may take longer. And think about the type of society you want to create and build your structure. With a local focus, it's harder after being able to grow

– In which sectors do you see more opportunities?

-Each industry is interesting Software and technologies can be applied to government, industry, media, retail, automobiles. My advice is to start now, not wait. You must diversify and each person must be an entrepreneur to survive. If you have a full time job, you can create your own blog and create your own brand, in any sector. We will enter a very difficult economic period in the next 5 or 10 years and if you rely on a single income, it is dangerous. You need to create multiple revenue and business channels.

Today, it is easier than ever to create a startup. My first company took $ 5 million to complete this project. We have invested 1 million USD in the development of a website. It was 20 years ago; there are now many services to build a very inexpensive or free website or business platform.

– Is it possible to detect a company that will fail from the first minute?

–It takes between 3 and 4 weeks of work with a company to have a good vision. With 10, 20 or 30 minutes, it is very difficult.. Sometimes I hear an idea and say "it will not work", but as I have experience, I realize that I may be wrong, so I try to keep the Open mind. Things change very quickly. I do a lot of investments, but I do not think I know everything. It is then that the errors are commented: an idea that seemed stupid five years ago may no longer be so.

-What are the errors plus the mistakes of the contractors?

–The most common mistake of startups is that they waste a lot more time building the product and do not spend a lot of time getting to know the consumers.. We see it all the time. It is important to talk with them, know their problems and take advantage of them. The important thing is to understand who your customers are before creating the company.