Orbit July '24 Newsletter
Orbit Startups
Orbit Startups is a venture capital firm investing in high growth technology startups in emerging and frontier markets.
Friends of Orbit,?
We’re halfway through the year and so much has happened in our Orbit ecosystem, ups and downs alike as the markets continue to be challenging. For this edition of our newsletter we sat down with Managing General Partner Oscar Ramos to discuss the importance of transforming traditional industries in emerging markets and how companies in Latin America can learn from Asia’s wins.?
More on this and how we’ve been supporting Korean startups entering new markets below.
Until next time!
Orbit Startups
Transforming Traditional Industries As A Path To Sustainable Change: A Conversation With Orbit Managing General Partner, Oscar Ramos
“Technology startups are the most powerful engine for change in emerging markets. I’ve been focused for a long time on finding ways to transform traditional industries through software. It may not sound that sexy, but I believe making existing services more efficient is the best way to create immediate impact.”
Software automation can be a game changer in manufacturing, construction, agriculture, education, healthcare and supply chains. Automation in these sectors reduces costs, increases profits and improves access to essential services.
We’re enabling this transformation by?investing in agritech companies like Fashol (Orbit 2023, Bangladesh) and Pricepally (Orbit 2021, Nigeria) who use AI to digitize food supply chains, reducing food waste from 40-50% to 5% while making more money for farmers. More efficiency means more food and less cost for customers.
Healthtech companies Flashaid (Orbit 2023, India) and Midoconline (Orbit 2022, Mexico) reduce the cost of medical care, making it more affordable for lower income populations. MUTA (Orbit 2023, Colombia) and Niu Niu (Orbit 2024, Mexico) have digitized the recycling process creating more value for every stakeholder from the waste generator to the waste buyer.
“In emerging markets, companies with high growth potential and the profitability to attract private capital are the winners who will drive long term change.”
Change has to be sustainable. Orbit is not interested in just any tech startup that can do good for customers. Our companies and founders know they can’t lose money on every user if they want to succeed. We work side by side with them to capture the customers who will pay them to address painful needs. We help them develop business models with a distinctive and defensive market advantage that can scale.?
Latin America Can Learn From Asia’s Wins
"Founders in Latin America can gain a competitive advantage by leveraging best practices from Asia. Despite being on opposite sides of the world, these two markets are more similar than you think."
Micro SMEs in Asia have moved from paper-based operations to fully digital mobile SaaS solutions, adopting business models that differ significantly from those in developed economies. Asian investors have a significant opportunity to bring not just capital but also expertise, networks, and connections to Latin America.
Brazil has been nurturing strong relationships with Asia with local companies successfully employing Asia strategies to scale and become leaders in their home market. This approach proved successful in Southeast Asia, where many companies received funding and strategic support from other Asian investors, ultimately creating strong local winners.
Oscar also cautions that startups in Latin America need to pay special attention to corporate governance. Emerging markets are low trust business environments and require a higher standard of reporting and transparency to successfully manage investors.
Across the Orbit Ecosystem
Meanwhile, we're celebrating the 11 Korean startups featured at the Global Startup Academy Demo Day 2024 in Singapore this July! Orbit Managing General Partner William Bao Bean was there to welcome and congratulate the startups as an action-packed Global Startup Academy (GSA) immersion week concluded with the founders pitching to investors in the region.
Orbit Startups is proud to support GSA, a 6-month pre-accelerator program helping startups enter new markets and thrive globally.?
We’re thrilled to partner with FuturePlay , Singapore Management University Institute of Innovation and Entrepreneurship, and ??????????(Korea SMEs Startups Agency) to drive innovation and new market opportunities!