Page 55 - Trends in Telecommunication Reform 2016

Case study: Aentropico, Colombia 1.7 Conclusions

Aentropico is a "big data" company, founded Based on the case studies presented in this Chapter 1
in Colombia in 2012, that provides predictive chapter, this section summarizes the key lessons
analytics services to businesses. It aims to make and best practice approaches to implementing
its service easy to use and accessible to a large regulatory frameworks and policies in order to
base of customers. This type of service typically attract investment in broadband networks and
is delivered over a web interface and therefore higher-layer services. This section also summarizes
requires reliable broadband connectivity. the investment trends across each of the case
studies reviewed. Care should be taken, however,
In its first year, Aentropico started its search for in interpreting these trends, because the sampling
funding with a small team and a platform at a of case studies needs to be significantly greater to
very early stage of development. It succeeded be statistically representative. Therefore, at best
raising USD 45 000 from private investors . In the case studies can be considered illustrative, and
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2013, Aentropico raised USD 110 000, of which the trends can be tested further through more
USD 20 000 was received from INNPulsa, a analysis and research.
government-funded incubator, and Fundación
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Bavaria, an institution that sponsors development-
oriented initiatives. Both institutions’ missions 1.7.1 Investment trends
are to support the growth of Colombia’s business
sector. The funds were offered to Aentropico as This section summarizes the investment trends
grants; Fundación Bavaria and INNPulsa were discussed in each of the case studies. By plotting
not expecting to receive a financial return. For the value of the investment of each case study
Aentropico, this type of funding meant that it did (x axis) and the economic maturity of the region
not have to dilute its equity stake, safeguarding where the investment was made (y axis) it is
capital for later and attracting investment from possible to derive an investment trend for:
other parties.
• traditional PPP broadband investments;
The grants, together with funding received from
investors such as Start-Up Chile and StartupBrasil, • new market entrants and alternative investors;
allowed Aentropico to keep growing its team and and
develop the platform. Today the company is selling
its products to clients across Latin America. • innovative investors financing higher-layer
services.

The results are shown in the chart in Figure
2.8. As previously mentioned, however, care
should be taken when interpreting these trends,

Box 1.19: Key lessons: Aentropico

• Grant funding from non-profit organizations means that companies do not have to
relinquish any of their any equity or ownership, which can be significant in attracting
further, private-sector investment.

• Non-profit funding is particularly relevant during the initial stages of a business, when it
can be very challenging to attract private investors.

• Governments can foster non-profit initiatives in different ways. A direct approach is to
form agencies such as INNPulsa, which help fill in the gaps where there are no private
investors. Other, less direct approaches could include rewarding companies that invest in
projects of socio-economic importance with fiscal benefits.

Trends in Telecommunication Reform 2016 37