The fintech industry has given light to clever innovators from all parts of the world, no matter their wealth status or resources. In fact many of the greatest fintech innovations came from nations where access to resources such as the internet are scarce, and new brilliant ideas came out of necessity. Specifically, many African nations such as Kenya and Nigeria have seen amazing progress over the past ten years, and now lots of eyes are on Latin American innovators. Techstars, which is a company dedicated to aiding gifted innovators in receiving the resources they need to reach their potential, as well as influencers from Silicon Valley in the United States have been looking towards Latin America for fintech improvements that only those who live there can achieve, based on their knowledge of the area and its needs. Clocktower Technology Ventures is one of the most recent investors to tap into the Latin American fintech market, and has seen massive return on these investments. Clocktower Technology Ventures (CTV) is the investing affiliate of a California-based fintech firm Clocktower Group. CTV has invested in 96 fintech startups since launching back in 2015, with 8 of those being in Latin American. Based on the success of these investments, CTV has announced that they will be launching a fund to exclusively invest in Latin American based fintech startups, and is allotting approximately €21.2 million to do this.
In the next few years, CTV plans on investing in approximately 40 Latin American fintech startups using this fund. However, CTV doesn’t invest like other typical investors, and believes that an alternative approach will be more beneficial for them and the fintechs they choose to invest in in the long run. CTV partner Ben Savage has said that “Across our investments, we’ve led zero deals, and we’ve taken zero board seats. We expect to replicate this approach for our strategy in Latin America. We recognize it’s an unusual approach, but we believe we can add more incremental value by doing other things.” By this CTV means that their ability to connect startups to other financial services and their CIOs, or chief information officers, is much more useful to Latin American fintech startups than taking a board seat, which is what most investors typically do. Essentially, they will act as a matchmaking service for their fintechs, providing resources which will help them prosper further than they would be able to simply by taking a board seat.