Social Leverage Letter | Issue #43

Secretive hedge fund Tiger Global changed the rules on tech investing. Then it all went bad.

The labor market remains hot. Yet companies in a range of industries are pulling back job offers to recruits they were courting just a short time ago.

Listen to this episode from Invest Like the Best with Patrick O'Shaughnessy on Spotify. My guest today is Sebastian Kanovich, CEO of payments company dLocal. Sebastian founded dLocal in 2016 to bridge the infrastructure gap between payments in developed and emerging markets. Since then, the initially bootstrapped start-up has enabled global merchants like Uber, Spotify, and Google to service billions of emerging market users. And in doing so, dLocal has created $10bn of equity market value, having IPOd last year. Our discussion covers dLocal’s playbook for facilitating payments in emerging countries, what Sebastian has learned about great API building, and how he challenges himself to improve personally. Please enjoy my conversation with Sebastian Kanovich. For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- This episode is brought to you by Pilot. Pilot handles your startup’s finance, accounting, and tax prep needs, so you can focus on what matters most—building your business. Join over 1,000 startups that rely on Pilot to help them scale. Founder’s Field Guide listeners get 20% off their first six months. Get in touch with Pilot at https://pilot.com/founders. ----- Founder's Field Guide is a property of Colossus, LLC. For more episodes of Founder's Field Guide, visit joincolossus.com/episodes. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @patrick_oshag | @JoinColossus Show Notes [00:02:13] - [First question] - His take on global payments, what is interesting about this system today, and dLocal’s role within it [00:04:06] - Approaching a country that could benefit from low-friction payments and the playbook for helping them improve their system [00:06:10] - Differences between being an API business versus a protocol one [00:07:13] - What companies handle these systems outside of emerging markets and why they haven’t entered the emerging market space [00:08:59] - A specific example of the steps involved in getting a country integrated into global payments for an app or service provider [00:11:22] - Whether or not they interact with consumers [00:12:09] - The trading and foreign exchange component of global transactions [00:13:16] - Country specific product teams and consolidating their process [00:14:52] - What he would look for in early-stage payment companies to invest in [00:16:23] - Defining excellent when it comes to working with regulators and regulatory environments [00:17:53] - Their role in digital globalization and trends that might arise in the future [00:19:52] - Ways that low-friction payments have helped accelerate regional innovation [00:21:31] - The unit economics and costs of a single payment [00:24:05] - What the source of cost is to process a payment or transaction [00:25:10] - Variables in currencies that make them desirable to work with [00:26:38] - Lessons learned from distribution and customer acquisition of their service [00:29:23] - Advice he would give to developers building API products [00:31:16] - An example of wanting to build a function into an API that was never built [00:32:40] - How they’ve been able to move and scale so fast [00:34:23] - Ways their business could most improve [00:35:14] - The operating system he uses to run the company [00:36:38] - Ways he’s most improved or gotten better as a CEO over the years [00:37:58] - Why deep humility is such an integral part of his character [00:38:30] - The biggest mistake they’ve ever made as a business and what they learned [00:39:20] - The kindest thing anyone has ever done for him

We're now looking to add an Account Executive to our founding EMEA Sales team. Directly reporting to our EMEA Manager of Sales, you will have the chance to help us build our business and accelerate our growth in new markets. As the world and travel landscape shift around us, this is an exciting opportunity to join a growing organization and lead the charge in executing our growth strategy.

About ProducePay: ProducePay has created the first-ever online financing and marketplace for fresh perishable produce. The Los Angeles-based company has raised over $290MM+ to transform the multi-billion-dollar Agriculture Industry and work with hundre...