Rafael describes himself as an angel investor who gives more than just a check, but likes to be involved in the process from an early stage, find the market for the venture and has a very focused approach on technology and the product, thanks to his background in engineering.
“I believe that the most important part of an angel investor for entrepreneurs is being an ambassador for that brand or that company (…) you have the job of bringing that brand, that product and promoting it with whoever is relevant, obviously, where it makes sense and being an ambassador and representative of that company in your portfolio,” he says.
Rafael Barroso is originally from Mexico City and currently lives in New York. He has been an angel investor for seven years, gave his first check before the pandemic and has invested in 42 companies in the United States, Latin America, Asia and Europe. Its focus is on founders from underrepresented communities, such as Latinos in the United States.
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He prefers to focus more on the entrepreneur than on the business. “I like to first establish a relationship with the founderget to know him a little more. I, as an angel, do not do exhaustive Due Diligence like Venture Capital (VC) firms, but I like to think that my Due Diligence is more at the level of the founder. Know your way of thinking, evaluate your decision-making capacity, also understand how much you know about the problem you are trying to solve,” he explains.
Barroso also highlights the challenges facing investment in Latin America, such as the lack of institutions that unify the ambitions of entrepreneurs and their tendency to seek financing exclusively in the United States. He also points to the lack of inclusion in the startup ecosystem, noting that less than 2% of VC goes to Latin founders in the United States. Therefore, it highlights the importance of creating communities that encourage mutual support and the visibility of Latino success stories.
“We Latinos, in our culture and in our education, have always taught us not to be conceited, to be humble. And I think that, in the world of Venture Capital, it actually hurts you a little. We don’t have to lose our culture, but we do have to be a little more vocal in terms of celebrating successes, in not minimizing anything we do,” Rafael considers.
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Furthermore, it emphasizes the relevance of emotional support for founders, suggesting that angel investors need to be more accessible and communicative, creating a safe space to discuss not only business problems, but also personal struggles, which can strengthen the relationship between founders and investors.
“Personal relationships are key and go beyond any transactional aspect. Beyond the check, whether there is success or not in the startup, what remains in the end are the relationships with the founders and that leads to new opportunities.”
