We got all of the history of the PayPal Mafia.
The PayPal Mafia is a term used to refer to the company’s original team, which is made up of an extraordinary group of entrepreneurs, such as: Peter Thiel, Elon Musk, Reid Hoffman, Steve Chen and David Sacks and many more former employees who created a multiplier effect on the ecosystem by investing in the next generation of entrepreneurs and creating successful businesses that we recognize as such today YouTube, Tesla, SpaceX, LinkedIn and Yelp, amongst other things.
The story of a company that spawns a group of entrepreneurs whose culture of innovating and building an industry from the ground up has a multiplier effect on the entrepreneurial ecosystem and economy isn’t just reserved for PayPal or Silicon Valley. In fact, there is one clear case in Mexico City: Linio.
The first Endeavor Review “The Multiplier Effect of the ‘Linio Mafia’ One Mexican Company”examines the influence and multiplier effect of the Linio team on the development of the e-commerce ecosystem for entrepreneurship in Mexico and Latin America.
The multiplier effect explains how entrepreneurs and business people drive the growth of an industry, sector, or city through investment, mentoring, serial entrepreneurship, and businesses created by former employees.
To investigate this effect, Endeavor collected and analyzed data on former Linio employees and their startups. He also interviewed three key players in the company’s creation: Ulrick Noel, former co-CEO and founder of Rocket Internet; Bernardo Cordero, co-founder and former CEO of Linio, and Carlos García Ottati, Chief Marketplace Officer (CMO) and former CEO of Grupo Linio.
Linio in Mexico
With the support of the new headquarters of Rocket Internet Mexico, Linio opened its doors in 2012 as one of the first players in the e-commerce market.
Before Linio, the general perspective in the industry was that Mexicans didn’t like buying online, but for Linio it was a neglected opportunity as there was no adequate platform to buy from and with a wide range of products. As pioneers in the industry, they had to build, develop and innovate. The culture in Linio’s team had to match this.
The Linio team needed to create logistics and payment support systems, promote cultural acceptance of e-commerce, and train an inexperienced workforce, which, according to Cordero, García and Noel, was Linio’s greatest impact and generated unparalleled digital talent.
Bernardo Cordero explains: “One part that is rarely talked about is the effect it creates [Linio] in the real ecosystem – in terms of payments, logistics, and getting customers used to online purchases. Someone had to invest, someone had to open the market, and that was without a doubt Linio. “
Multiplication effect in numbers
The study identified 66 companies founded by Linio employees or founders in Latin America.
The ventures that the “Mafia Linio” has generated in the ecosystem include e-commerce platforms (Togetherz and Mercadoni), some of which focus on specific industries such as the sale of pet products (Petsy.com), cars (Kavak) and Mattresses (Luuna) focus). Others facilitate business processes such as recruiting (Apli), product delivery (CorreoClick), human resources (Worky.mx) and insurance (Covela). A fourth is digital agencies that offer a variety of services related to e-commerce and digital marketing.
Of the 66 companies, 70% are in Mexico, 66% were founded in 2015 and 2016, and 30% were founded by Linio founders and former executives. Additionally, 47% are in the e-commerce space, 32% have 10+ employees, 6% have 10+ connections with Linio, and 35% have received investments.
Out of the most successful investments and the number of employees, they are most successful in the e-commerce space, They were developed by either or both of Linio’s founders or leaders. Companies with more connections to Linio are also more successful.
Where is the “Linio Mafia” today?
Today we find various success stories of the “Linio Mafia”. For example, Ulrick Noel co-founded Everdeen Capital, an investment bank focused on long-term relationships. Bernardo Cordero founded STARTegy Venture Builder, the new company in the fintech sector, and Carlos García Ottati is the co-founder, CEO and chairman of Kavak, a platform that makes it easier to buy and sell used cars.
Kavak is one of the most successful cases of the “Linio Mafia”. Carlos founded the company in 2016 with Roger Laughlin Carvallo, former Linio Sales Director. The platform currently employs 150 people, has received $ 16 million in investments, and is part of the Endeavor network.
Another success story is Luuna, which was founded in 2015 with three former Linio executives: Guillermo Villegas, William Kasstan and Carlos Salinas. Luuna is causing a disruption in the rest of the industry and is characterized by its online mattress sales model. The company employs 44 people and has received an investment of 115 million pesos. You are also on the Endeavor Network.
In 2013, Olivier Scialom, former Marketing Manager of Linio LATAM, co-founded Petsy.mx, the main online site selling pet products in Mexico. In July 2018, Petsy.mx was acquired by Maskota, the largest pet products business in Mexico. Petsy founders are Endeavor s.
Other examples include the former CMO of Grupo Linio, Jose Maria Pertusa, who founded Apli; the former director of Mobile LATAM de Linio, Naveen Sharma; and the former director of Pricing LATAM, Vikram Deswal, who founded UnDosTres; and the former director of Marketing Electronics LATAM, Joao Matos Albino, who founded Urbvan.
Beginning of awakening
After building the e-commerce ecosystem, the “Linio Mafia” continues to stimulate the growth of the sector both outside and inside its network.
Despite the impressive growth of Mafia Linio companies, some still believe that the e-commerce market in Mexico is just beginning to awaken. Consumers and investors are getting closer and closer to the industry and companies are starting to scale.
Carlos García: “This mafia will keep moving forward. It’s just beginning. I believe that in five years we will start to see the flow of this Linio Mafia. “
Linio’s case needs to be judged by the impact it has had on e-commerce in Mexico, building and developing teams with a high level of ability to create and innovate so as to form a digital talent that is now the ecosystem of the ship permeates and creates a network of people who are new to giving and receiving mentoring to companies who are customers and suppliers and invest with one another.
Endeavor seeks to apply this multiplier effect to countries, cities, governments, civil associations and international philanthropic institutions interested in promoting the country’s economic and cultural development through effective entrepreneurship as the greatest catalyst.
Maintaining a prosperous ecosystem in any sector requires extensive development. Opening up new avenues within the economy requires support structures such as payment and logistics systems, understanding and general acceptance by consumers and allies, and training and the acquisition of experience with professional talent.