Net Investors Discover A New Continent: Latin America

Venture capital from around the world is flowing into startups

Last September, Juan Carlos Garcia was getting anxious. The $300,000 he and his partners had raised from family and friends to launch decompras.com, a Mexican e-store that sells everything from perfume to Palm Pilots, had run out. So Garcia, a 31-year-old Wharton School graduate from Monterrey, rang up a former boss who had started a small venture capital fund in Mexico City. He soon got the answer he wanted: $1 million in seed money in exchange for a 30% stake in decompras. com. Now, the fund, Ventura Capital Privado, is arranging a $5 million to $7 million financing for the startup. "I no longer have to knock on doors," says a relieved Garcia.

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