Practical Guide to Legal Structures for Latin American Startups
By
walterbell
Hand-rolled, kettle-boiled, baked to perfection. Worth every minute at the bakery.
Summary
This article provides practical guidance on legal structures for Latin American startups, based on the author's experience investing in 80+ startups across 15+ countries since 2014. It addresses common confusion among founders, VCs, and lawyers about legal entity choices that can have significant financial consequences (upwards of $100M if chosen incorrectly). The content offers insights from working with lawyers across Latin America, the US, UK, Europe, and offshore jurisdictions, originally developed as internal guidance for Magma Partners founders and now shared publicly to help entrepreneurs save time and money.
Key quotes
· 4 pulledThere's confusion around what legal structures make sense for Latin American startups.
Founders, VCs and even lawyers can make decisions that can cost upwards of $100M if you get it wrong.
This post is the result of investing in 80+ startups from 15+ Latin American countries since 2014 via Magma Partners.
I wrote a version of this that I've been sharing with Magma Partners founders internally and decided to open source it with the hope that founders save themselves time and money.
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