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

Fernando Pontaza, Co-Founder of Invariantes sits down with David Weisburd to discuss setting up the first Guatemalan Venture Capital Fund and why he targets a 25% IRR. We’re proudly sponsored by Bidav Insurance Group, visit lux-str.com if you’re ready to level up your insurance plans. (0:00) Episode Preview (1:25) The genesis of Invariantes, the first Guatemalan venture fund (3:11) The fund strategy (5:19) How Fernando won over Latin American investors (6:57) Powerlaw distributions and how they impact returns (8:36) Episode Sponsor: Bidav Insurance Group (9:48) The importance of smoothing out returns (10:55) What to look for in a fund manager (12:30) How to build LP/GP relationships (14:47) Common mistakes when investing in emerging managers (18:46) Diligencing co-investments (21:58) Is signal important? (23:30) The importance of open communication (24:57) The purpose of the LPAC (25:41) Best practices when fundraising in Latin America (28:02) The dangers of direct deals (33:58) How to reach Fernando