30s Summary

Hyla Fund Management is planning to launch a $30 million fund intended for the Latin American crypto sector. The “fund of funds” aims to expose investors to various hedge funds, tapping into the underserved market with local knowledge. The goal is to educate traditional investors about the value of cryptocurrency, with venture capital scarce in the region. Paola Origel, CEO of Hyla, envisions the company to become the “Goldman Sachs for digital assets”, and specifically targets undeveloped markets like Brazil, Mexico and Argentina for their emerging crypto-tech development. The fund is set to launch in January 2025.

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Hyla Fund Management is set to launch a $30 million fund aimed at the Latin American crypto sector. The fund aims to provide investors with access to various hedge funds, serving as a “fund of funds”. Hyla’s CEO, Paola Origel, emphasized the potential opportunities in Latin America’s crypto market despite its current size.

Uniquely, Latin America’s crypto scene is relatively undeveloped. Origel suggests that major funds such as Sequoia and a16z have attempted to penetrate the market, but have faced challenges due to cultural differences. In her view, success requires local knowledge and understanding.

Origel also noted that venture capital funds are scarce in Latin America, particularly Mexico, and she’s made the effort to scout the region to find the best managers. All of the three managers she selected are based in Mexico City.

Just as the Latin American market is unique in its complexity, so too is the crypto space. Comparing the two, Origel sees similar challenges and opportunities in both markets that require ample education for potential investors. She wants to convince traditional Latin American Investors, who usually prefer tangible assets, of the value of cryptocurrency.

Looking ahead, Origel envisions Hyla becoming the “Goldman Sachs for digital assets”, leveraging its unique strategies. Initially, the Latin American fund is expected to add $30 million to Hyla’s assets under management when it launches in January 2025.

Remittances in Latin America have the potential for significant growth given the high fees associated with international transfers in the region. Mobile companies also have the opportunity to develop their peer-to-peer transaction capabilities to reach the large unbanked population. Also, the rise in entrepreneurial talent in countries like Brazil, Columbia, and Argentina is promising, as venture capital investment is currently disproportionally low. However, Origel maintains that the market is still in its early stages, so investors need to be open to all sectors.

In her strategy, Origel has highlighted Brazil for its tech development in the crypto world and Mexico because of her experience with the country. She also indicates interest in Argentina and El Salvador. However, the focus will be more on the quality of projects and teams rather than their location. She aims to find investment opportunities that will have a regional and global impact.