VCs there suck, and do not understand that VCs are about inherently risky investments. They want the guarantees of a low risk business with the profitability of a high risk business.
Leadership in Latin American companies also sucks. As soon as the company has any revenue, the leadership will go all out and spend it all on themselves on some extravagant lifestyle adjustments rather than reinvesting it on the company. And because of this, many companies stay small and mediocre without fulfilling their true potential. They waste their money on MBAs learning things they are unwilling to apply.
Then, there is nepotism. Hiring from your family equates creating conflicts of interest, creating situations where relatives of key people do not need to comply with HR, do not need to be competent, cannot be fired and create an unprofessional atmosphere.
Compensation in most Latin American companies sucks. They aspire to be like Silicon Valley startups and hang framed posters of Steve Jobs on their wall, but when it's moment to create compensation packages they grant zero stock and award zero bonuses, all while having the same work-life balance of a startup. They do not understand the key role of employee stock in company growth.
Why the fuck would you work for a wannabe startup that doesn't give you any stock or bonuses? Or work for some entitled aggrandized clown that doesn't understand the simplest technical concepts? And the answer is: because
business owners in Latin America have never had to care much about their workforce. Because of exploitation and their informal caste system, having a happy workforce has never been a requirement.
That's why Latin America is undergoing a massive brain drain that will only get worse in the years to come.
VCs there suck, and do not understand that VCs are about inherently risky investments. They want the guarantees of a low risk business with the profitability of a high risk business.
Leadership in Latin American companies also sucks. As soon as the company has any revenue, the leadership will go all out and spend it all on themselves on some extravagant lifestyle adjustments rather than reinvesting it on the company. And because of this, many companies stay small and mediocre without fulfilling their true potential. They waste their money on MBAs learning things they are unwilling to apply.
Then, there is nepotism. Hiring from your family equates creating conflicts of interest, creating situations where relatives of key people do not need to comply with HR, do not need to be competent, cannot be fired and create an unprofessional atmosphere.
Compensation in most Latin American companies sucks. They aspire to be like Silicon Valley startups and hang framed posters of Steve Jobs on their wall, but when it's moment to create compensation packages they grant zero stock and award zero bonuses, all while having the same work-life balance of a startup. They do not understand the key role of employee stock in company growth.
Why the fuck would you work for a wannabe startup that doesn't give you any stock or bonuses? Or work for some entitled aggrandized clown that doesn't understand the simplest technical concepts? And the answer is: because business owners in Latin America have never had to care much about their workforce. Because of exploitation and their informal caste system, having a happy workforce has never been a requirement.
That's why Latin America is undergoing a massive brain drain that will only get worse in the years to come.