20VC: Lessons from Investing $7.5BN at Softbank & Why Dumb Money has Gone, Why “LATAM is Under Construction” and the Next 10 Years Will Be the Best & Investing Lessons from Missing Nubank & OpenAI & Investing in FTX with Marcelo Claure and Shu Nyatta @ Bicycle Capital
Posted on 31st July 2023 by Harry
Marcelo Claure is the Founder & CEO of Claure Group, a multi-billion-dollar global investment firm. He is the Executive Chairman and Managing Partner of Bicycle Capital, a $500M Latin America-focused growth equity fund, and was appointed Chairman in Latin America of SHEIN, the global #1 on-demand fashion company in the world. Claure was also the CEO of SoftBank Group International where he launched SoftBank’s $8B Latin America Funds, and had direct oversight for SoftBank’s operating companies. As an entrepreneur, Marcelo built Brightstar from a small local distributor to the world’s largest global wireless distribution and services company. In addition, Claure led the turnaround of US wireless telecommunications company Sprint and helped orchestrate its US$195 billion merger with T-Mobile.
Shu Nyatta is the founder of Bicycle Capital. Before Bicycle, Shu was most recently a Managing Partner at SoftBank Group International, where he launched and managed two separate funds – the SoftBank Latin America Fund and the Opportunity Fund for early-stage investments in US-based founders-of-color. In the first part of his SoftBank career, Shu was a founding Partner of SoftBank’s Vision Fund. Several companies have retained him on their boards as an independent board member following his departure from SoftBank, including Lemonade (NYSE: LMND), Kavak and Tribal Credit. Shu also serves on the board of Endeavor Global – the leading global community of, by and for high-impact entrepreneurs.
In Today’s Episode Featuring Bicycle Capital We Discuss:
1. From Deploying $10BN at Softbank to Founding Bicycle Capital:
What was the founding moment for Marcelo and Shu in the founding of Bicycle?
What does Shu believe is Marcelo’s superpower? How has working with Marcelo changed the way he thinks?
Why does Marcelo believe that he is not a good investor? How does Shu make him better, specifically?
2. Lessons from Investing $10BN at Softbank:
What are 1-2 of the biggest lessons from investing $10BN over the last few years at Softbank?
How did missing OpenAI and Nubank impact how Shu and Marcelo think and invest today?
Why was losing $150M on Softbank’s FTX investment, the biggest lesson of Marcelo’s career?
What are Marcelo and Shu doing differently at Bicycle, having seen how it went at Softbank?
3. The Venture World is Changing:
Why do Marcelo and Shu believe the world of venture is changing? How is it changing most?
Why are founders going directly to LPs to raise rounds today, over going to VCs?
Do Marcelo and Shu believe that many VCs provide value?
Who will win in the next 10 years of venture? Who will lose?
Why do Marcelo and Shu believe you should not invest in founders that do not take your advice?
Do Marcelo and Shu agree with the statement that “the best founders do not need your help”?
4. LATAM is Under Construction: It is Time to Build:
What are the two reasons that the next decade will be the best ever for LATAM?
What are the biggest misconceptions about the LATAM tech market?
How do Marcelo and Shu answer the question of the lack of liquidity available with few M&A deals taking place and very few LATAM companies listing on the NASDAQ?
How do Marcelo and Shu evaluate the withdrawal of foreign capital from LATAM tech markets? Is it good or bad? Have a load of US funds lost money on early-stage LATAM deals?