The Truth Behind the Magma Memo: How We Use it to Partner with Latin America’s Top Entrepreneurs

Since February 2014, our door has been open to founders 24/7/365 via our Magma Memo: magmapartners.com/apply.

We don’t care if you have connections into VC networks, or whether you’re in startup hotspots like Brazil or Mexico, or places like Uruguay, Ecuador or Chile. We care about entrepreneurs, your startup and your traction.

Since 2014, we've reviewed over 4,000 Magma Memos via our online form from more than 25 countries. We’ve invested in 28 companies that came in cold and sent personalized feedback to the other 3,872+. Our commitment to the ecosystem is that if you create a Magma Memo, our investment team will give you personalized feedback, full stop.

Some entrepreneurs don’t like the form, they prefer to go directly to a Zoom call or in person meeting. But founders should love it.

Two of our top performing investments ever came through the form, 100% cold: Omni and Albo. And we didn’t even meet Angel Sahagun, Albo’s founder, in person until a year after investing. As Angel put it, “It’s been a great partnership for both of us. Magma has really helped me since investing, for example introducing me to one of my most important advisors today.” And it all started with a Magma Memo.

Make the Most of a First Meeting

By applying, you create a Magma Memo. It shouldn’t take more than 10 minutes and we’re very happy with bullet points. A Magma Memo allows our team to have a conversation during our first call, where we ask the right questions and don’t waste your time trying to understand the basics of what you do. It’s more dynamic than watching your pitch deck over Zoom. 

No Warm Intros Required

If you don’t know us, let your business speak for itself. A Magma Memo helps founders get feedback and investment dollars without spending time looking for warm intros.

A Magma Memo helps us level the playing field and avoid biases by being data driven. 

Save Time, Get Feedback Quickly

80% of companies that create a Magma Memo get personalized feedback within a week, but we don't end up investing. 15% get follow up questions via email, with about 50% getting to a call. There are 5% that go directly to a Zoom call.

It’s much better to spend 10 minutes on a Magma Memo and get personalized feedback or follow up questions rather than 45 minutes just to get some indication if your business fits with our investment thesis or not.

Magma is Data Driven

We can track your progress through time and reach out as you build your company. It gives the Magma team a baseline to track over time and make investments in companies we miss the first time we connect with them. Don’t be discouraged if we pass. We’ve invested in 15+ companies where we passed originally and asked them to follow up with updated metrics and traction.

Magma Invests Anywhere (in Latin America) Where We Find Amazing Entrepreneurs

We get applications from 20+ countries each year, even though we only have people on the ground in 5. For example, we’ve invested in 5 Ecuadorian startups, including three of our highest performing companies, and I've never been to Ecuador.

So what do we look for in a Magma Memo? And how can you be sure to stand out?

  • Clear direct writing. Tell us about yourself and your startup directly, without filler words
  • Show us why you’re the best team to solve the problem you’re trying to solve
  • Tell us about your traction

For the first time ever, we’ve decided to publish two of the best application forms we’ve gotten: Omni, which in those days was called Portal Finance, and Albo. Read on to read the original Omni and Albo Magma Memos.

Or if you're ready to create a Magma Memo, go ahead and get started!