02 Dec CINEMAD – MARIANO LO CANE
Cinemad is an innovative interactive video advertising platform, that works under a business model SaaS, that allows users to use the software online to any user simply by registering. Cinemad creates interactive campaigns for clients, distribute them cross-device, measure, and optimize to generate a higher return on investment.Mariano Lo Cane Co-Founder & CEO de Cinemad shares what means to be a Eurolatina.
1. What makes LATAM/Europe a great opportunity for startups? Why LATAM/Europe and no other regions?
I think that currently it is strategic for LATAM companies to migrate to Europe than vice versa since the region is at a time of economic contraction with devaluations of emerging markets currencies in Argentina, Chile, Mexico and Brazil versus the strength of Dollar or Euro.
For LATAM companies, expanding and developing in stronger markets such as the European one, could be a great solution to these crises. For remote service companies such as Cinemad, the formula has become very favourable since invoicing is in euros and our costs are lower because of devalued currencies.
2. Why LATAM/Europe and no other regions?
I think that, although there are cultural differences, the reality is that especially the “Latin region of Europe” (https://es.wikipedia.org/wiki/Europa_latina) has many similarities with Latin America and vice versa, which allows accelerating landing in new markets.
Having said that, I believe that it is culturally easier for Latin companies to adapt to the uses and practices of the European markets than to the informality that is still a challenge in many LATAM markets.
In the particular case of Cinemad, Spain has been the fastest growing market for the one and us where we currently have the highest profit margin.
3. What are the main challenges startups are facing when expanding to LATAM / Europe?
For Cinemad, the big challenge is the time difference Europe/LATAM , unfortunately on a daily basis when we start to operate in Argentina (10am) which is where our headquarters is, in Spain it is already 3pm which gives us only a margin of 3 hours to solve problems of the daily business.
In the next four-month period, we will try a new approach to address this issue. We have hired a team based in Argentina that will operate under Spanish time schedule so we can operate with no time constraints.
With regard to the legal issues of setting up a company in Spain and opening a bank account, the reality is that it took more time than we had thought especially because it coincided with the holiday period in Spain (August) but was less bureaucratic than other markets where we have opened operations.
4. Key learnings / recommendations for startups planning to expand to the LATAM / European market.
In our case, a key trigger to grow rapidly in the market to which we are expanding is to hire local talent that are plugged in to the business dynamics, have the right contact network, the know-how about the industry’s own business and the entrepreneurial capacity to develop the business.
In the real estate business is all about location, location, location, in ours is all about recruiting recruiting, recruiting!!