This Serial Entrepreneur-Investor Built And Exited Several Companies And Has Now Raised ~$130 Million To Offer Revenue-Based Financing to SMEs

In the ever-evolving world of entrepreneurship, few stories stand out quite like Manolo Atala’s. A founder from Mexico with an unconventional path, Manolo has navigated industries with precision, leveraging storytelling, trust, and a deep understanding of numbers to build and scale companies.

Manolo’s journey—from music to launching Groupon in Mexico and becoming a strategic investor—embodies the essence of resilience, adaptability, humility, and calculated risk-taking.

Listen to the full podcast episode and review the transcript here.

The Power of Storytelling and Trust in Business

Manolo was born and raised in Mexico and has lived in the country for most of his life. Although he has traveled extensively in the last 20 years, he has always been integrated into Mexico’s startup ecosystem as an entrepreneur or investor supporting other entrepreneurs.

Manolo’s journey as a founder is deeply rooted in his appreciation for storytelling. He firmly believes that storytelling is not just a tool for founders but an essential skill for anyone in business.

“You need storytelling for a lot of things,” he says. Whether in a corporate setting, pitching to investors, or rallying a team, a compelling narrative should align words with actions, creating trust—a fundamental asset for any entrepreneur.

“Trust is the most important asset you need to have,” Manolo emphasizes. A founder’s reputation can make or break a startup. Investors, employees, and partners rally behind those they believe in. “The narrative you give to the market, publicly and privately, is very important,” he asserts.

Manolo’s understanding of this principle has played a critical role in his success, from fundraising to attracting top-tier talent.

An Unconventional Start: Expelled from University to Entrepreneurship

Manolo’s entrepreneurial spark ignited at a young age. He was just 21 years old at the time. While many founders drop out of college to pursue their dreams, Manolo’s path was even more unconventional—he was expelled.

Instead of seeing this as a setback, Manolo seized the moment to start his first business, an advertising venture inspired by a UK model. Though that business did not thrive, it planted the seed of entrepreneurship in his mind.

“It activated something in my head—this idea that I can do this,” Manolo recalls. His realization was simple yet profound: failure was merely a stepping stone. “I can do it again and again until I succeed.”

The Music Industry and the Unexpected Lessons in Numbers

Before entering the corporate world, Manolo ventured into music. He played in a band despite not knowing how to play an instrument initially, pushing himself to learn rapidly. Though seemingly unrelated to business, this period of his life taught him valuable lessons.

“Music is equal to math,” Manolo explains. The discipline of learning music quickly sharpened his ability to process numbers and patterns, a skill that later became invaluable in his entrepreneurial career. He loved crunching numbers and music helped shape his intellect mathematically.

The creative problem-solving Manolo honed in music would later help him in business strategy, financial modeling, and operational efficiency. Having complete control over his destiny spurred him on the path to joining the corporate world.

The Transition to Corporate and the Birth of a Startup Leader

Realizing the financial instability of a full-time music career, Manolo pivoted to the corporate world. Not only did he need a regular paycheck, but he also wanted to expand his skill sets.

Manolo first worked at one of Latin America’s largest entertainment companies before joining Yahoo’s sales team in 2008. At Yahoo, he managed a small but efficient team, learning the intricacies of corporate structure, sales strategies, and team dynamics.

Then came a pivotal moment—launching Groupon in Mexico in 2010. Manolo quickly expanded the team from zero to 150 employees, leading the company to generate $30M in revenue in its first year. This rapid scaling process was an eye-opening experience in leadership.

“If you want to create a successful business, it’s impossible to do it alone,” he notes. Hiring became a critical skill, as he learned to navigate different personalities, understand team dynamics, and motivate people.

“You need very talented people in every position to succeed. It’s arrogant to think you can do the smart, strategic moves yourself,” Manolo opines. Entrepreneurs need to learn to be leaders and align people’s motivations, behaviors, and skill sets.

Investment and the Art of Spotting Great Founders

After his success with Groupon, Manolo moved into investing, becoming an angel investor in Cornershop and later an LP in Nazca Ventures and other VC firms. and other venture capital firms. His investment journey taught him to recognize patterns in successful founders.

Manolo recalls how this stint gave him insights into the exponential growth and development of Mexico and other Latin American countries–whether it was about new companies being launched or venture capital firms exploring investment opportunities.

“The most common thing I see in successful startups is how their founders complement and relate to each other,” he observes. Manolo highlights Cornershop as an example—three founders, all engineers, but with different strengths: technology, operations, and storytelling.

He describes them as humble and keen on solving problems with technology. They are people-centric and culture-driven, focusing on efficiency. The co-founders set aside their egos when having difficult conversations and created a trust space for solo decision-making.

This balance of skills and mutual trust enabled them to execute their vision effectively. Manolo believes that complementary teams, rather than solo founders, tend to build more successful companies.

Co-founders trusting each other to execute efficiently allows each to focus 100% on the tasks and milestones they must bring to the table.

“I need to go to war shoulder by shoulder with someone. I’ve seen amazing solo founders, but I think the most successful companies are built by teams with diverse skill sets.”

Mastering Numbers: The Secret Weapon of Successful Entrepreneurs

One of Manolo’s obsessions is numbers, which he loves analyzing and crunching. He stresses that while a startup’s initial business and financial models rarely play out exactly as planned, how founders construct their financial assumptions is crucial.

“If a founder can’t walk me through their numbers in a simple and clear way, it’s a red flag,” Manolo says. “Even if the model changes, their ability to think through financial assumptions is what matters.” Founders should be able to envision outcomes at least in the first and second years.

Monolo’s investment philosophy revolves around finding founders who have a deep understanding of their business metrics. The ability to analyze, iterate, and optimize financial models often separates successful startups from those that fail.

Lessons Learned at NAZCA

As the former COO of NAZCA, Manolo and his team constantly evaluated new deal flows, often encountering business models that did not align with their investment thesis. At NAZCA, he learned the dynamics of how founders and investors operate.

Manolo also picked up on the dynamics between board members during board meetings and with investors. He also developed an understanding of the different personalities of founders, their vision and capabilities, and how venture capital aligns with them.

Launching Fairplay

Instead of waiting for the right opportunity, Manolo and Hector, his colleague at NAZCA, decided to design their own business models that were aligned with the fund’s investment thesis and go out and find incredible founders who could execute those businesses.. This approach led to the inception of Fairplay.

The first concept they explored was revenue-based financing for e-commerce companies. Manolo and Hector developed the initial business model and financials before searching for a founder to lead the venture. The idea was to provide $1M seed capital to founders.

They found Andrew Devlyn, Manolo’s longtime friend, who immediately resonated with the model. Soon after, Manolo considered leaving NAZCA to join Fairplay as a co-founder, a decision that was met with enthusiasm by both Andrew and Hector.

With their collective vision and expertise, they officially launched Fairplay in 2019.

Evolving Fairplay’s Business Model

Fairplay initially focused on revenue-based financing for direct-to-consumer e-commerce brands, providing working capital for marketing campaigns. However, they quickly realized that financing marketing alone was insufficient.

Companies also needed funds for inventory and logistics to scale effectively. This insight led to an expansion into marketplace sellers on platforms like MercadoLibre, Amazon, and Walmart.

As the business evolved, the team recognized that, in general, retail was a much larger market than just e-commerce. Over time, Fairplay expanded beyond e-commerce into retail and broader SME financing in Mexico.

Essentially, Fairplay started from a very niche financial product to a more broad kind of market and industry. Today, the company provides financial products and technology solutions tailored to SMEs.

With a team of 89 employees, Fairplay has originated over $340M in financing and continues to scale, generating approximately $12M in annual revenue.

Storytelling is everything that Manolo Atala was able to master. The key is capturing the essence of what you are doing in 15 to 20 slides. For a winning deck, take a look at the pitch deck template created by Silicon Valley legend, Peter Thiel (see it here) where the most critical slides are highlighted.

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Navigating an Unfamiliar Industry

One of the most remarkable aspects of Manolo’s journey was his ability to enter and succeed in an industry he initially knew little about. He highlights two contrasting approaches founders can take when entering a new sector.

Going in with a naive perspective can be beneficial, as it prevents biases and outdated industry constraints from clouding innovation. “You’re coming in a with a clear mind of how to do things,” Manolo explains, stressing the fresh perspective.

However, excessive arrogance—believing one can completely disrupt an established system without understanding its intricacies—can be a fatal mistake.

For instance, one couldn’t consider eliminating banks, financial institutions, and regulators when the system has worked well for the last 200 to 300 years. Manolo and his team balanced these two mindsets.

While they approached the market with fresh ideas, they remained humble enough to acknowledge the deep-rooted knowledge of existing financial institutions. This balanced approach allowed them to innovate while avoiding critical missteps.

Nonetheless, Fairplay encountered challenges, particularly in foreign exchange (FX) risk management, where they learned valuable lessons about hedging US dollar-based debt facilities and strategic debt structures.

Raising Capital: Equity vs. Debt

Raising capital was pivotal to Fairplay’s growth, and Manolo emphasizes the stark differences between raising equity and securing debt. In 2019, before the fintech boom, Fairplay raised a $5M seed round led by QED and NAZCA, using just a PowerPoint presentation.

This was followed by a $13M Series A in 2021, with participation from Dila Capital, one of the main VC firms in Mexico, Kayak Ventures from Chile, Elevar Equity from India, and Speedinvest from Austria, alongside existing investors. An additional $11M was raised in follow-on investments.

On the debt side, Fairplay secured a $20M facility from San Francisco-based Architect Capital, one of the first U.S.-based funds providing credit in Latin America. This was later refinanced with a $100M facility from CIM.

Subsequently, Manolo and his team transitioned to refinancing a line of credit with BBVA Spark in Mexico, shifting to local currency financing to mitigate FX risks. Fairplay is now in a partnership with BBVA Spark.

Manolo recalls an insightful experience when pitching to a German development bank. Initially believing he was speaking to the debt team, he focused on risk mitigation and underwriting structures—only to later realize they were equity investors backing growth-stage companies.

Given a brief opportunity to reframe his pitch, Manolo swiftly shifted his narrative to highlight vision, growth potential, and market opportunity. This adaptability in storytelling left a lasting impression, with the investors who remained interested in future participation.

The Vision for Fairplay’s Future and Advice for Aspiring Entrepreneurs

Looking ahead, Fairplay aims to become the leading financial institution for SMEs in Mexico, offering a suite of financial products tailored to their needs.

Manolo envisions a future where Fairplay deeply integrates with SMEs, solving their financial challenges and driving sustainable growth.

Reflecting on his journey, Manolo offers two key pieces of advice for young entrepreneurs. First, he emphasizes the importance of taking life and career decisions seriously, cautioning against recklessness.

Second, Manolo stresses the value of surrounding oneself with individuals who are significantly smarter, as collaboration with the right partners can be a game-changer. He highlights the power of warm introductions for those seeking investment or strategic advice.

A well-structured, clear request—preferably through a trusted connection—can significantly improve engagement and outcomes when approaching investors or industry leaders.

Final Thoughts: A Journey Defined by Adaptability and Strategy

Manolo Atala’s journey—from being expelled from university to running a music band, launching Groupon in Mexico, and becoming an investor—epitomizes adaptability.

His story traces a path from investor to founder and is about strategic thinking, bold decision-making, and relentless execution. It underscores the importance of storytelling, trust, leadership, and financial mastery in the entrepreneurial world.

For Manolo, the key takeaway is clear: entrepreneurs must embrace failure, continuously refine their approach, and master the fundamentals of business. He has proven that unconventional roads often lead to the most remarkable destinations.

Listen to the full podcast episode to know more, including:

• A compelling narrative and a strong reputation are crucial for fundraising, hiring, and leadership.
• Manolo’s early entrepreneurial setbacks taught him resilience and the importance of iterating until success.
• Mastering financial models and assumptions is key for founders to attract investment and scale effectively.
• The best startups are built by teams with diverse skill sets and mutual trust rather than solo founders.
• Manolo transitioned across industries, leveraging lessons from music, corporate roles, and startups to build successful businesses.
• Understanding the differences between equity and debt financing helped Fairplay scale while mitigating financial risks.
• Entrepreneurs must balance big-picture thinking with meticulous execution to turn ideas into scalable businesses.

 

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