Structuring And Financing A Latin American Internet Start-up ~ Part 1

Access to the Internet in Latin America, despite comparatively low penetration rates throughout the region, is rapidly transforming the way in which local companies conduct their business. Simultaneously, the Internet has spawned the creation of hundreds of new businesses throughout Latin America which are seeking ways to capitalize on the commercial opportunities presented by the Internet, including on both a business-to-consumer and business-to-business basis. This rapid development of Internet-based businesses has been facilitated by free access to the Internet provided by the portal operators (including Universo Online, El Sitio and Star Media), despite significant impediments, including the unavailability of a convenient and accessible payment mechanism, and the absence of a regional infrastructure for the prompt delivery of items ordered online.