| BUSINESSWEEK ONLINE : OCTOBER 25, 1999 ISSUE | ||||||||
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| INTERNATIONAL -- LATIN AMERICAN COVER STORY
Argentina: The Rise and Rise of Patagon.com (int'l edition) The E*Trade of Latin America was born in the library of San Andres University in suburban Buenos Aires. Argentine students Constancio Larguia and Wenceslao Casares met there five years ago while leafing through techie magazines. Today, they run Patagon.com International Ltd., the region's hottest online brokerage. And unlike most Internet startups, this one is turning a profit. Its owners plan to take it public in the U.S. next year. Co-founder Larguia, 24, and Chief Executive Casares, 25, have soared to prominence in Internet time--that is, very fast. After graduation in March, 1997, the duo spent a whirlwind two weeks in Silicon Valley soaking up the local culture. The trip included stops at Charles Schwab, Yahoo!, and Excite. On their return, Larguia and Casares shopped their plan for an online brokerage, but there were no buyers. ''A lot of people thought I was a fool,'' Larguia says. In June, 1998, the partners got a break when InvestCapital, a local brokerage, put up $1 million for a 50% stake in their venture. The deal allowed Patagon to execute trades on the Buenos Aires stock exchange. Six months later, it had a thousand clients. LOW FEES. Soon, Patagon attracted U.S. venture capitalists. In April, Chase Capital Partners and Net-focused affiliate, Flatiron Partners, pledged to invest $15 million in Patagon. The company has since acquired brokerages in Chile and Argentina and a seat on the Caracas stock exchange. Patagon is now piecing together $35 million to $50 million in financing from new investors. Patagon bills itself as Latin America's most complete online brokerage. Regional rivals, such as Argentina's Rava and Brazil's Griffo, seek to match its low $7- to $16-per-trade fees. But Patagon (www. patagon.com) boasts more in-depth research. Online trading is just the start of the financial-services empire Larguia and Casares want to create, offering credit cards, mutual funds, and home mortgages online. That kind of ambition has made the partners Latin Internet stars. These days, when Larguia and Casares leaf through techie magazines, they read about themselves. By Beth Rubenstein Keaveny in Buenos Aires _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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