| ign="center"> | | | | and other portfolio companies. For that purpose |
| Venture capital in Argentina, particularly at an early | | | | Modena obtained the representation of the CIO |
| stage, requires an active participation in the running | | | | magazine and invested in Agentis Software. |
| of portfolio companies. One can argue that VCs | | | | As mentioned previously, the fund brought the CIO |
| practically play the role of entrepreneurs. In other | | | | magazine to Latin America. This magazine was a |
| words, there is no room for âdumb | | | | direct way to reach the 1500 plus Chief Information |
| moneyâ. Venture capital, for various reasons | | | | Officers operating in Argentina and Chile. Needless to |
| outside the scope of this piece, has to be | | | | say the magazine brought in a lot of business to |
| âsmartâ i.e. has to be | | | | Patagonia Technologies. After U.S. based multinational |
| complemented with experienced management and | | | | Agentis Software awarded a contract for software |
| has to have a wide network of contacts. | | | | development to Patagonia, Modenaâs CEO, |
| Modenaâs investment | | | | Omar Arab, convinced the American company to |
| Modena Technologies Capital Partners is an early | | | | open a subsidiary in Buenos Aires. This subsidiary |
| stage venture capital fund based in Buenos Aires, | | | | started its operations in 2005 and served the Latin |
| Argentina. This case study describes | | | | and Central American markets. It grew from 10 to |
| Modenaâs investment in a software factory | | | | 100 employees in just a couple of years. To the |
| called Patagonia Technologies. Starting from scratch, | | | | outside world, Patagonia and Agentis were two |
| the Modena fund grew the factory from a 100 | | | | different companies but from the inside they were |
| square foot office with a 5 person team to a 1500 | | | | intrinsically linked, the former selling its business |
| square foot office filled with 300 software engineers | | | | solutions to the latter. |
| in merely three years. | | | | Modena TCP successfully exited these investments in |
| Keys to success | | | | 2007. Patagonia was sold to a local investor for USD3 |
| This exponential growth was fueled by two factors. | | | | million and Modenaâs stake in Agentis was |
| The first one being Modenaâs active | | | | bought by some minority shareholders of the |
| networking. This resulted in big local clients such as | | | | company. |
| -Telecom Argentina, Aeropuertos Argentina 2000, | | | | This case study shows the need for a hybrid nature |
| AerolÃneas Argentinas and Metrogas contracting | | | | in venture capitalists in Argentina. It is not only about |
| with Patagonia. | | | | Private Placement Memorandums, due diligences, |
| The second reason for growth can be found in the | | | | valuation and simulation analysis and board meetings. |
| strategy that Modena applied to enhance the | | | | It is also about focusing on the companyâs |
| companyâs development. Said strategy | | | | strategy, structure, clients and alliances. |
| consisted in promoting synergy between Patagonia | | | | |