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Julio Vasconcellos: Scaling to $100M and 1,200 Employees and then Cratering | 20VC #928

Julio Vasconcellos is the Founder and Managing Partner @ Atlantico, one of the leading early-stage funds in Latin America. Prior to the world of venture, Julio got his break in the world of startups as Facebook’s first country lead for Brazil. Julio then went on to co-found Peixe Urbano, a company he scaled to over 1,200 employees and $100M+ in revenue. Post the sale of Peixe Urbano, Julio became an EiR @ Benchmark Capital where he met Scott Belsky. Scott and Julio went on to co-found Prefer, a Benchmark backed company transforming the future of work. If that was not enough, Julio has a stellar angel track record with prior investments in the likes of Ipsy and Quinto Andar. --------------------------------- Timestamps: 0:00 Julio’s Background 2:04 Julio’s Experience Running Facebook LATAM 4:27 Markets vs. Founders 5:50 When to persist and when to give up 7:25 Scaling Peixe Urbano 9:25 First things to break when you’re growing fast 10:54 When is the right time to expand product lines? 12:16 What does “winning a market” mean? 13:10 Mistakes made at Peixe Urbano 14:49 What would you do differently if you started another company in Brazil? 16:05 How did your VCs help out when times were bad? 17:24 How did your experience with Benchmark impact you as an investor? 19:28 Staying Focused vs. Moving with Markets 20:56 Biggest Lessons from Prefer 23:00 Best Strategy for Shipping Product Today 24:08 The shift from Angel Investing to Institutional Investing 26:12 Most common ways you have to be cutthroat as a VC 27:34 What to do when you lose confidence in a founder 29:12 Do boards add value? 31:44 Atlantico’s First Fund Raise 34:16 Julio’s First LP Letter 37:26 How do you think about reserves management? 38:41 Contrarian Thinking 40:47 Julio’s Biggest Hit 41:55 Julio’s Biggest Miss 43:19 Comparing LATAM to USA 47:26 Will investors flee LATAM during a downturn? 50:10 When to take cash off the table 51:51 Advice for LATAM Founders During the Downturn 54:03 Julio’s Favourite Book 54:17 Most Underrated Angel Investor 55:00 What have you changed your mind on recently? 55:46 What do you know now that you wish you’d known when you started Atlantico? 56:25 Who is the LP that you wish you had? 56:58 What one thing would you most like to change about startups? 57:31 Julio’s Most Recent Publicly Announced Investment --------------------------------- In Today’s Episode with Julio Vasconcellos We Discuss: 1.) Entry into Startups: What are 1-2 of Julio’s biggest takeaways from being Facebook’s first hire in Brazil? What does Julio know now that he wishes he had known at the start of his career in startups? 2.) Lessons from Scaling Peixe Urbano to $100M in Revenue: How does Julio advise founders on when is the right time to launch a second product or market? How does Julio advise founders on the right balance between growth and unit economics? When times are tougher, should founders cut fast or cut slower? What is irreversible? What are the single biggest and worst things to break in hyper-scaling? 3.) Investing: Why Not Enough Play To Win: What is more important, a great market or a great founder? Why do not enough VCs today play to win? If they do not play to win, what do they play to do? Why is greed the number one enemy of venture returns? What are the single biggest investing lessons Julio has learned from Benchmark Founder, Andy Rachleff? How have they impacted his investing mindset? Why does Julio believe you can have a close relationship with founders as an angel and not a VC? How did Julio’s approach to investing change with the transition from angel to VC? Does Julio believe that boards really add any value? If so, how? What is Julio’s biggest investing hit? How did it change his approach? What is his biggest miss? How did that impact his mindset? 4.) The Future for LATAM: Is Julio as concerned as I am by the removal of growth stage capital from the LATAM ecosystem? Does this mean a higher mortality rate for LATAM companies? How does Julio advise founders? How did COVID adoption of technology in LATAM fundamentally differ to the US? --------------------------------- Subscribe to the Podcast: https://www.thetwentyminutevc.com/julio-vasconcellos/ Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Guest on Twitter: https://twitter.com/JulioV --------------------------------- #JulioVasconcellos #20VC #HarryStebbings #venturecapital #productmanagement #PeixeUrbano

Harry StebbingshostJulio Vasconcellosguest
Sep 22, 202259mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

From Hypergrowth Collapse To LatAm VC: Julio Vasconcellos’ Hard Lessons

  1. Julio Vasconcellos traces his journey from leading Facebook’s early growth in Latin America to scaling daily-deals startup Peixe Urbano to $100M revenue and 1,200 employees before the model cratered.
  2. He unpacks what true product-market fit feels like, how lack of focus and over-expansion across products and geographies contributed to Peixe Urbano’s decline, and what he learned from later failing to find product-market fit at Prefer.
  3. Julio then explains how those experiences shaped the strategy behind Atlantico, his LatAm-focused early-stage fund: sharp focus, thinner reserves, more initial concentration, and independent (often non-consensus) thinking.
  4. Finally, he offers a data-driven view on LatAm’s digital opportunity, the reality of reduced growth capital, advice for founders operating in boom–bust cycles, and how great investors and LPs really add value.

IDEAS WORTH REMEMBERING

5 ideas

Product-market fit is a qualitative, compounding force that hides many sins.

At Facebook and Peixe Urbano, Julio saw that once product-market fit is strong, hiring, fundraising, sales, and expansion all become dramatically easier—while without it, perfect execution rarely creates greatness.

Market quality and focus matter more than almost anything else.

Julio ranks market and model above team once product-market fit is found, and urges founders to dominate one geography, one product, and one customer segment before expanding, instead of fighting multi-front wars too early.

Over-expansion can quietly kill companies, especially when the macro turns.

Peixe Urbano’s rapid move into multiple products and countries consumed cash and management bandwidth, leaving the company overextended when the daily-deals model structurally weakened globally.

Vision should be firm, but the path must remain flexible.

Founders should maintain a compelling long-term ‘why’ that attracts and motivates talent, while holding the tactical ‘how’ loosely—willing to pivot routes without abandoning the destination.

Finding product-market fit is far harder than most successful operators remember.

Prefer’s failure despite strong founders taught Julio he had underestimated the difficulty of creating fit in complex markets, and that he’d biased too heavily toward rapid iteration versus giving some product bets enough time and craft.

WORDS WORTH SAVING

5 quotes

Product-market fit really solves all problems, and if you don't have it, it doesn't really matter what you're gonna do because you're never gonna be able to achieve greatness.

Julio Vasconcellos

You have to pick one geography, one product, one customer, win that, and then move on. Don't try to do everything in parallel.

Julio Vasconcellos

You really can't win by playing not to lose.

Julio Vasconcellos (relaying Andy Rachleff’s perspective)

I underestimated the difficulty of finding true and amazing product-market fit… it's so hard and it's quite rare.

Julio Vasconcellos

Rule number one is just to be in the game and stay in the game… It's healthy sometimes to cut through the fat and into the muscle, because you can always undo that later if you were wrong.

Julio Vasconcellos

Lessons from Facebook LatAm and the power of product-market fitHypergrowth, over-expansion, and decline at Peixe Urbano (Groupon-style startup)Vision, focus, and how to define ‘winning a market’Failing to reach product-market fit at Prefer and product development philosophyTransition from angel to institutional investor and building AtlanticoFund strategy: concentration, reserves, non-consensus investing, and LP relationshipsLatin America’s tech penetration, COVID acceleration, and funding environment

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