News Americas, NEW YORK, NY, Tues. Aug. 17, 2021: No one is likely to quickly forget the pains and discomforts of 2020, nor even the beginning of 2021. But with prevention measures and vaccinations underway, the world is left with communities that are eager to bounce back in a healthy recovery to make up for the losses. Though all the pandemic woes are not yet over, economies are ready to show their worth after a dark period that no one was expecting.
To get a full picture of the opportunities for investment in the post-pandemic world, we look to the investors with a Midas touch and a proven track record for making the right moves.
COVID-19 has undoubtedly seen rapid growth in some areas, such as e-commerce and home delivery, but decline in many others, such as tourism and entertainment. The underlying and predictable trend for the time of social distancing is that new technologies have been in popular demand, accelerating their adoption and growth. This is particularly the case in less developed parts of the world that have been badly hit by the pandemic, such as Latin America.
One prominent investment expert is Dale W Wood, the Dubai-based Costa Rican founder of Dale Ventures and various internet-based initiatives, including HealthYes! and Netualize. He has made large investments in tech innovations like Instanda, which leveraged new forms of AI to help it become one of Europe’s leading Insurtech firms.
Dale Wood has also found success with other tech ventures that include Arcadia, Huma, Rayo Credit, and TechMet. He has said that he wants the businesses he backs to become the “next big things” – and many of them have done exactly that. All this is possible through not just funding, but also ongoing mentorship and encouragement. The idea of Dale Ventures is that “growth comes from continually creating value in the long term”, which results from qualities like clearly defined goals, communication, patience, and persistence.
In post pandemic investment- June21, Dale W Wood acquired a majority stake in Dubai-based X-Golf entertainment. Speaking on the investment, Wood said he couldn’t miss the opportunity to invest X-Golf’s ambitious plans for technological innovation and expanded access to an otherwise exclusive sport.
Dale W Wood told Global Banking and Finance how “an economic downturn is an excellent time to start something new because people are focused on only one thing—finding something with real value, instead of prioritizing vanity metrics.”
Dale Wood also points to the marked growth in emerging economies in Asia and South America, such as Colombia and Brazil. Dale Ventures committed $5 million towards the expansion of Rayo Credit into Colombia as part of its worldwide portfolio, showing its belief in the potential of the region.
This would seem to be a wise move, given the recent promise that Latin America has shown. Even with the contraction of 2020, startups were still booming in the region, with investment in venture capital almost to the level of its record year in 2019. The startup ecosystem of Latin America has been growing since 2016, with governments beginning to make regulatory changes to encourage entrepreneurship. Such laws have already been passed in Colombia, while others are under consideration in both Brazil and Peru.
The World Bank Group forecast economic growth of 3.7% in 2021, so things are certainly looking up for a region devastated by the pandemic. Profit growth is also expected to be much higher than in other emerging and developed countries.
Andressen Horowitz Ventures South Of The Border
The Silicon Valley-based venture capital firm, Andreessen Horowitz, is one of the world’s largest, especially in the technology sector. The firm has recently noticed the new potential in Latin America, commenting on their website, “there is an enormous amount of untapped opportunity in Latin America for financial services of all types”.
Among other factors, the fintech boom has been spurred on by coronavirus restrictions, and this is not something Andreesen Horowitz would miss out on. The firm recently invested in Jeeves, an expense management company aimed at global startups that are based in Latin America.
Other investors that are hot on the heels of Andreesen Horowitz to Latin America include SoftBank, a Japan-based conglomerate. The company has provided a tech fund of $5 billion dedicated to the region, for fintech and proptech platforms like Creditas and QuintoAndar.
Although we are not yet out of the woods in terms of the pandemic that has brought a massive disruption, we are certainly on our way to recovery. This is an exciting time for investment opportunities, but it pays to sound out your prospects and keep to your commitments. Investors would do well to follow Dale W Wood’s example – because patience is a virtue that reaps the highest rewards.