Martin Escobari: How to Invest During a Recession; Negotiation Tips; Developing Markets | 20VC #948

Martín Escobari is Co-President, Managing Director and Head of General Atlantic’s business in Latin America. Martín is Chairman of the firm’s Investment Committee and also serves on the Management and Portfolio Committees. Before joining General Atlantic in 2012, Martín was a Managing Director at Advent International. Prior to that, he was Co-Founder and CFO of Submarino.com, a leading Brazilian online retailer that went public and was sold to Lojas Americanas in 2006. Martin started his career as a management consultant at The Boston Consulting Group. Thanks to Seba Kanovich @ dlocal for the introduction today. ------------------------------------ Timestamps: 0:00 Who is Martin Escobari? 3:19 What are you running from/towards? 4:25 Were your parents proud of what you accomplished? 5:23 Did you feel imposter syndrome at Harvard? 6:53 Biggest Lessons from Submarino 9:32 The Balance between Founder, Market, and Business Model 13:03 How to Prevent Biases from Impacting Future Decisions 14:16 How did you know the economic downturn was coming? 17:04 Why Investing is More Fun during a Downturn 18:10 How did GA avoid the hype and FOMO of 2021? 19:27 Advice for Young Investors Seeing their First Downturn 22:08 What were the internal discussions when Softbank and Tiger were buying up everything? 25:13 When Being Outspent by the Competitors Matters 26:45 Lessons in Pricing 28:08 Lessons in Negotiation 30:21 How does GA make decisions? 34:30 Creating an Environment where Young Investors Feel Safe to Speak Up 36:24 Thesis-driven Investing 38:12 Has Martin ever lost money? 38:29 Have you ever lost confidence in yourself as an investor? 38:59 Are you worried about the exodus of capital from developing markets? 40:12 Has your investing changed over time? 41:41 How to Retain a Youthful Mind 42:35 How do you stay driven after you become wealthy? 43:28 Tips for Raising Kids When You’re Wealthy 46:38 Martin’s Favourite Book 47:44 Best Investment Advice Martin Ever Received 47:57 Most Common Investing Mistake 48:45 Advice You Often Give but Struggle to Follow Yourself 49:00 What makes a great board? ------------------------------------ In Today’s Episode with Martín Escobari: 1.) From Bolivia to Harvard to Leading General Atlantic: How did Martin make his way into the world of venture from a small town in Bolivia? How did being an operator going through a bust impact how Martin invests and works with founders? How does Martin advise young members on his team about surviving through a bust? 2.) Market Matters: Founders, Product or Market: Why does Martin believe the single most important element when investing is the market you are entering? How does Martin assess both market size and market growth? What does Martin believe makes a “beautiful business model”? What is the difference between good vs great? Why have we seen a generation of bad business models? How did Martin’s analysis of Nubank’s market lead him to turn them down? How did Martin change his approach to investing on the back of turning down Nubank? 3.) The Venture Landscape: What made Martin believe there was a downturn last year? What three signs always suggest we are in a bubble? As a result, how did General Atlantic retain their discipline when others did not? Where did they lose their discipline and invest at the top of the market? How does Martin analyse the performance of the crossover funds in the last 24 months? Who did well? Who did not? Do they remain in the market? Is Martin concerned by the exodus of capital out of South America with the bust? 4.) Martin Escobari: The Investor and Board Member: How has Martin’s style of investing changed over the last decade? How does Martin reflect on his own price sensitivity? Does Martin engage in outcome scenario planning? What has been Martin’s biggest hit? How did it change his mindset? How would Martin analyze his own style of board membership? How does Martin advise young board members gaining their first boards? ------------------------------------ Subscribe to the Podcast: https://www.thetwentyminutevc.com/kyle-harrison/ Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow Martin Escobari on Twitter: https://twitter.com/EscobariMartin Follow 20VC on Instagram: https://www.instagram.com/20vc_reels Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok ------------------------------------ #MartinEscobari #GeneralAtlantic #HarryStebbings #20vc #venturecapital #bolivia #nubank #investing