Meet the investor who identified 23 unicorns, carried out nine IPOs and sees more potential in Brazil than in the US.
James Currier, known for his time with the San Francisco-based music group The Richter Scales, is also an influential figure in the investment world. Since 2017, he has co-founded NfX, a venture capital firm with around $1.5 billion under management that focuses on early-stage startups.
The firm has over 200 investments in its portfolio, including 23 unicorns and nine IPOs (until then until this year of 2024), including DoorDash, Lyft and Patreon. He shares his vision and the areas of greatest interest in Brazil.
Why companies in Brazil?
Brazil features prominently in his investment choices, with three startups in NfX’s portfolio: Clubbi, UME and Porfin. According to Currier, Brazil offers more opportunities for startups, since the market is large and still largely unexplored, with less competition from industry giants such as Google and Microsoft than in the United States. “Brazil offers us a more open field for new ideas,” says Currier. Currier recently visited Brazil and praised the quality of local entrepreneurs, comparing them to those in Israel for their dedication and humility in facing challenges. “Brazilian entrepreneurs are resilient and have a great capacity to adapt,” he said. He also highlighted that he sees in Brazil a rare combination of talent and opportunities, which makes the country attractive for investments in sectors such as fintechs, software as a service (SaaS) and artificial intelligence applied to business solutions.
Regarding artificial intelligence, Currier believes that, although the main innovations in the area come from places like California, Brazil has the potential to stand out in the application of these technologies, facilitating access to local companies and consumers.
Despite the enthusiasm for AI, he warns about the risk of talking about market bubbles, but draws a parallel with the evolution of the internet and the growth of giants like Facebook, indicating that artificial intelligence will have a lasting impact.
Currier also highlighted that NfX seeks startups with the potential to create network effects, something he sees in Brazilian portfolio companies such as Clubbi, UME and Porfin, which benefit from the larger their user base, the more valuable they become to other users and companies.
In terms of investments, NfX focuses on early stage rounds, with investments of US$2 to US$3 million in companies with small teams, that already have a product and initial revenue. NfX has a close relationship with startups, with direct involvement in strategic planning and ongoing support for founders.
Finally, Currier advises Brazilian entrepreneurs to remain humble and agile. “The key to success is the ability to learn and unlearn quickly. The mindset of the founders is the most important factor for the success of a startup,” he concludes.
