La Frontera Podcast, Episode 4 - Scaling in LatAm: Building Billion-Dollar Startups & Fundraising Like a VC

Courtney is a SUPERSTAR founder, and we’re excited to share this episode with you all! She brings a unique perspective as not only a former VC turned founder, but also as a foreigner building and scaling in LatAm. We encourage you to listen to the entire episode, as her insights are invaluable! Choose your favorite platform below!

Episode 4 Summary

Courtney McColgan moved to Latin America for love — and stayed to build one of the region’s most ambitious startups. After scaling Cabify from a $20M to a $1.5B company, she founded Runa, a payroll software company tackling one of the toughest operational challenges in LatAm. In this episode, Courtney shares what she’s learned about expanding across the region, raising capital as a founder building in LatAm, hiring in an evolving tech ecosystem, and why LatAm still feels like it’s on the cusp of something massive.

🎙️ In this episode, we cover:

• The unique challenges of scaling a startup in Latin America as a foreigner

• Why thinking like a VC helped Courtney raise capital in a tough fundraising environment

• The hidden complexities of payroll in LATAM – and why locals wouldn’t dare build it

• How Rappi and NuBank opened the floodgates for venture capital in the region

• The talent landscape in Mexico – where to hire the best talent (it’s not where you think…)

Runa: Transforming Payroll and HR Management in Latin America

Runa is a modern, cloud-based payroll and human resources software designed specifically for companies in Latin America. The platform enables businesses to manage payroll, human resources, time tracking, performance management, and reporting — all within a single, integrated system.

• Founded: 2017

• Stage: Early-stage (Seed/Series A)

• Total Funding Raised: $3.65 million

• Investors: Y Combinator, Salesforce Ventures, Nubank, Cabify, Ribbit Capital, and others

• Mission: To automate payroll processes for small and medium-sized businesses in Latin America, providing a user-friendly, efficient, and affordable solution that replaces manual methods and outdated software.

🌎 "LATAM Has That Pulse – Like China in 2006"

After studying in the U.S. and working in Silicon Valley, Courtney moved to Peru in 2014. The tech scene there was small, but she saw something bigger happening across Latin America. Having previously worked in venture capital and founded companies that were acquired, she saw firsthand the gaps in Latin America's technology landscape.

That energy led her to Cabify, where she played a key role in growing the company across 12 countries and 130 cities. It was there that she saw firsthand the opportunity in B2B SaaS — a largely untapped market in the region.

🚀 A Foreigner’s Advantage – And the Biggest Challenge

One of the key themes in this episode: being a foreign founder can be an advantage, but it comes with major hurdles.

For Runa, that naivety worked to her advantage. Courtney set out to build a ‘Gusto for LATAM’, but she quickly realized payroll in Mexico is infinitely more complicated than in the U.S.

• Language Barriers: Payroll laws written in Mexican legalese were almost impossible to understand at first.

• Regulatory Chaos: Unlike the U.S., payroll tax calculations in Mexico don’t have one clear formula — each company adjusts the math slightly.

• Tech Constraints: Many integrations had to be built without APIs, requiring Runa to rethink core infrastructure.

Despite the challenges, Runa broke through after completing YC, raising $6.5M in seed funding at a $30M valuation with only $2,000 in monthly revenue — all while fundamentally reshaping payroll for SMBs in the region.

💰 Raising Capital in LATAM vs. Silicon Valley

Courtney’s experience fundraising offers a blueprint for founders raising in LATAM today.

That changed after Rappi and NuBank proved that billion-dollar companies could scale in the region. But even today, fundraising in LATAM requires a different approach:

• If you have access to capital from the U.S., you have an edge. Logos matter — having YC or Stanford on your resume makes it easier to unlock Valley capital.

• Local funds should be your first stop. LATAM-based VCs can help you bridge the gap and get introductions to international investors.

• Think like a VC. Many founders don’t build financial models showing how they become a billion-dollar company. Courtney did — and it made all the difference.

🌍 Expanding Across LATAM – What Founders Need to Know

Expanding in LATAM isn’t a simple copy-paste strategy. Every country has different regulations, talent pools, and even language nuances that make scaling complex.

One of the biggest challenges? Hiring the right country managers.

To successfully scale, founders must prioritize country-specific adaptations in product, customer service, and branding. Runa’s strategy has been to focus on Mexico first, where the market size makes sense before expanding strategically.

🌟 The Tech Talent Challenge in LATAM

Despite significant growth in tech talent, software engineers in Mexico are now overpriced due to poaching by US companies like Google and Amazon. Engineers, especially product managers, are in high demand but in short supply. To counteract this, RUNA has expanded its engineering teams to Colombia, Venezuela, and Argentina, where talent is more affordable and eager for opportunities.

However, LATAM has significant potential to build a strong pipeline of tech talent. Argentina and Brazil have historically been the region’s strongest engineering hubs, while countries like Colombia, Mexico, and Venezuela are emerging as new talent pools. Founders are increasingly turning to remote work models to attract the best engineers across the region while optimizing costs. The challenge remains in training and developing product leaders, an area where the region still lags behind more mature ecosystems like the U.S. and Europe.

🔥 The Future of Tech in LATAM

So, what’s next for tech in Latin America?

While funding has dipped post-bubble, capital levels are still higher than pre-2018. But the next big shift will require exits — IPOs or acquisitions to keep investor confidence strong.

Courtney is now focused on Runa’s next phase — expanding beyond SMB payroll and into broader HR solutions to unlock mass-market scale.

Final Takeaways

Building in LATAM isn’t easy, but it’s full of opportunities. Courtney’s story shows the value of thinking big, localizing strategy, and embracing the chaos of the region.

Additional takeaways below 👇

1. Navigating Complex Markets: Courtney McColgan’s journey underscores the importance of adaptability and cultural understanding when entering diverse markets like Latin America. Her experience with Runa highlights how tailored solutions can address region-specific challenges.

2. Leveraging Local Talent: Building a successful team in Latin America requires recognizing the unique skills and potential within the local workforce. Runa’s growth demonstrates the value of investing in and empowering local talent to drive innovation.

3. Embracing Technological Innovation: The success of Runa illustrates the critical role of technology in transforming traditional industries. By adopting cloud-based solutions, businesses can enhance efficiency and remain competitive in evolving markets.

4. Strategic Fundraising: Courtney’s approach to securing investment for Runa emphasizes the need for strategic planning and clear value propositions. Her experience suggests that aligning with investors who understand the regional landscape can significantly impact a startup’s trajectory.

5. Resilience in Entrepreneurship: The challenges faced by Runa, from market downturns to operational hurdles, highlight the resilience required in entrepreneurship. Courtney’s story serves as a testament to the perseverance needed to overcome obstacles and achieve long-term success.

📢 Listen to the full episode here.

Follow Courtney for more insights

And check out Runa to see if it’s the right fit for your team here:

Runa: La plataforma #1 de nómina y beneficios

Thanks for reading!

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