The founders of PayPal and it is employees have created many highly effective companies through the years. Actually, PayPal&rsquos founding team frequently is called the &ldquoPayPal Mafia&rdquo simply because they&rsquove had this kind of effect on the startup ecosystem. Peter Thiel, Elon Musk, Reid Hoffman and lots of other former PayPal employees have formed a few of the world&rsquos greatest tech firms, founding the likes of YouTube, Tesla, SpaceX, LinkedIn, Yelp and much more.
This serial entrepreneur success story, where one company breeds a outstanding crop of entrepreneurs, is similar to an identical phenomenon happening in another place in the world. The storyline begins with another U.S. company, Groupon, in a period of rapid worldwide expansion around 2010-2011, and happens in South America.
The storyline of ClanDescuento
This Year, Daniel Undurraga and Juan Pablo Cuevas, both Chilean entrepreneurs, together with Swedish entrepreneur Oskar Hjertonsson, launched a business known as Needish in Chile. The woking platform, a classifieds portal kind of just like a Craigslist for Chile, rapidly received countless visits monthly and set they into the spotlight.
However, missing a practical method to achieve profitability, Undurraga and Hjertonsson required to pivot the organization. Having seen Groupon&rsquos success within the U.S., they launched ClanDescuento, a clone for that Chilean market.
Groupon, meanwhile, was removing within the U.S., and by now the organization was equipped with a billion-dollar valuation from the investors. Groupon also faced pressures from elevated competition, and from 2010-2011, the organization continued a wild buying spree, obtaining as numerous of their copycat competitors all over the world because it possibly could.
Getting resided in Bay Area for nearly 5 years, Undurraga was infatuated with the wide range of on-demand services available.
That can be a was happening, and taking advantage of the Needish database, the ClanDescuento team began delivering daily email purports to its users, rapidly gaining recognition in Chile. After just three several weeks of operations, ClanDescuento generated significant revenue. Its founders made the decision they desired to expand ClanDescuento to the remainder of South America, therefore the team required a vacation to Plastic Valley, with the thought of raising funding for his or her expansion. They wound up inside a ending up in Andrew Mason, the founding father of Groupon, who suggested turning ClanDescuento into what can become &ldquoGroupon South America.&rdquo
In June 2010, after just several weeks of operations, Groupon acquired ClanDescuento. Underneath the new name &ldquoGroupon South America,&rdquo with significant financial resources, they (which now incorporated Daniel Undurraga, Oskar Hjertonsson, Felipe Henríquez Meyer and Juan Pablo Cuevas because the Chief executive officer) could continue growing their operations across South America.
Saying goodbye to Groupon
For the following couple of years, the ClanDescuento founders brought Groupon South America and managed greater than 1,000 employees. However for these entrepreneurs, together with a number of other Groupon South America employees, building companies over the region was a lot more interesting.
In Feb 2013, Hjertonsson and Undurraga moved from the realm of daily deals to Plastic Valley. There, they launched a brand new group-photo service known as Seahorse. The concept didn&rsquot quite remove and merely as Seahorse was winding lower, Juan Pablo Cuevas, Needish&rsquos third co-founder and also the first investor in Seahorse, seemed to be intending to leave Groupon South America after getting effectively run the organization for quite some time.
Through the finish of 2014, the 3 Needish founders were together again, this time around with also try this more consistent with their previous success.
Cornershop comes into the world
In The month of january 2015, Cornershop, an on-demand delivery service for that Latin American market, was created. Getting resided in Bay Area for nearly 5 years, Undurraga was infatuated with the wide range of on-demand services available and recognized that Latin Americans would enjoy similar services, too. On the top of this, nobody in the area was supplying them.
Having a US$2.5 million investment acquired through private capital, the 3 ClanDescuento founders launched Cornershop in Mexico and Chile. Not just was Mexico the biggest market in South America, but Undurraga and the partners understood the marketplace perfectly using their time working at Groupon Mexico. Additionally they made the decision to base their engineering team in Chile, and launched the delivery service there, too.
Under annually in, Cornershop elevated another US$6.7 million to accelerate its development in Mexico and Chile. In May 2017, the organization closed a remarkable US$21 million round brought by Accel Partners. These million-dollar fundraiser models are simply impressive for any Latin American startup, and therefore are proof that investors certainly see promising potential in Cornershop.
Other Groupon member successes
When it comes to other people of Groupon South America, Felipe Henríquez Meyer, the CFO of Groupon South America from June 2010 to June 2013, continued to become managing partner at Nazca Ventures (now Mountain Nazca Latin America), an earlier-stage investment capital fund that invests in Latin American companies.
This past year, when Groupon announced its decision to refocus its efforts in only 15 markets (in The United States, Europe, the center East and Africa) and also to seek proper options for the rest of the 11 Asian and Latin American markets, Mountain Nazca started purchasing Groupon companies in five Latin American markets. By April 2017, it’d acquired the rest of the Groupon platform in the area, Groupon South america, getting Henríquez&rsquos participation with Groupon full circle. In November, Mountain Nazca announced the purchase of South america&rsquos leading online player, Peixe Urbano, purchasing it away from china web and check giant Baidu.
Then there’s Daniel López Rivas, who labored for Needish and because the social networking manager at Groupon South America. Rivas continued to produce Hoblee, a content-discussing platform, but has become back using the original Needish team doing marketing for Cornershop. A number of other people from the original Needish team of developers, for example Oscar Giraldo and Gert Findel, also moved into Groupon&rsquos offices upon the purchase. Nico Brenner, an item manager at Needish, later founded Praiseworthy, an worker review and feedback keeper.
Patricio del Sol, who labored because the mind of promoting and because the senior vendor for Groupon South America from 2011 to 2013, continued to get the co-founding father of Admetricks, a platform that gives business intelligence services for internet marketing.
It will likely be exciting to find out if Groupon South America continues producing remarkable entrepreneurs.
The 3 founders of Babytuto, an e-commerce platform that provides baby products in Chile, also labored at Groupon South America and lately elevated greater than half a million dollars for his or her startup company. Camila Veloso, who held various sales roles at Groupon Chile, continued to produce Kosleeping in Chile, an e-commerce platform also featuring high-quality mother and baby products.
Manolo Atala was the Chief executive officer of Groupon Mexico this year to 2012 and then grew to become the Chief executive officer of Groupon North LatAm, which incorporated Mexico and also the Caribbean, until 2013. Next, he became a member of the Cornershop management team and co-founded Pulpomatic, a fleet keeper company in Mexico.
Felipe Parragué, who also were built with a brief stint at ClanDescuento before joining Groupon Mexico under various roles, founded Denda, an e-commerce platform for eco-friendly and sustainable products with operations in Chile and Mexico.
Then there’s Federico Malek, the founding father of Wallooz in Argentina, that was acquired by Groupon this year. During Malek&rsquos time at Groupon, he saw an industry chance for retail e-commerce in Argentina right after departing Groupon he received funding to start Avenida.com, a web-based shop featuring a multitude of products similar to Amazon . com. By 2015, Avenida.com had elevated US$50.5 million.
This certainly isn&rsquot all the success tales which have emerged in the Groupon South America ecosystem. Using more than 760 employees in Groupon units across South America, a constantly-growing support system of investors, advisors and mentors, in addition to a restored focus because of Mountain Nazca, it will likely be exciting to find out if Groupon South America continues producing remarkable entrepreneurs, mainly in the e-commerce space, for that near future.