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Beatriz Acevedo

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2022-12-15
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2022-12-15
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  1. Yeah, and we'd be, you know, same as Italy, same as France. So definitely a very, very big economic power that we have in our backyard. It's always very shocking to me when people say like, where should I be investing next, right? We're in Latin America. We're in Europe, we're in Asian. I always say in your backyard, it's called Young US Latinos. And why I always make this emphasis on youth, it's because obviously, yes, you know, Latinos are driving that population growth. It's a very young demo. So there's so much opportunity. But for me, my goal is really, really big. I really want to make sure that I made a substantial contribution to help close the wealth gap in my community. So as big as our contributions are to GDP, we still are at 20 cents to the dollar when it comes to closing the wealth gap in our community. And that's not something that we're going to

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  2. So, you know, if we took Latinos and said, let that be a different country, right? We'd be the fifth largest economy in the world.

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  3. Yes, that's in our roadmap for twenty twenty three. Products and services absolutely, whether we build our own on things that don't exist yet that we think would be well received by our community, or we white label and partner with other financial institutions.

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  4. About masterclasses. We have certifications and we give you proof of learning on the blockchain, but we also have a deal with Arizona State University where you're able to get real life ASU certificate should you want one. So it's almost like a whole ecosystem to help you build wealth and that has a premium to it. A lot of these activations will continue to be free because we partner with financial institutions. So we've been working with Morgan Stanley, Chase, Wells Fargo, Fidelity. So that's a part of how we make money aside of the subscription model, both on the consumer side and on the B2B side. We are closing now deals with pretty big names and brands, not just on the financial side, to give this as an employee perk, but also for their customers.

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  5. Yes, oh great question. So it's been free so far. It's a freemium version like I was saying to really build the community, the trust, the brand, and the scale. We think that it's much better to have a big funnel for when you want to convert those super users into a paid version. And that's where we are now. So a lot of the resources are free, but not all of them. We have a membership that it's a premium wealth building membership that gives you access to the app and the premium coaching. It gives you access to our sumaverse, which think about a gamified universe where you're able to do all these different activations. We have a financial gym. We have a credit cosina activation where through food recipes you're able to learn how to up your credit score. We have regueton and Manimari Mariachi Plaza where you learn about getting off debt from there. We have our Sumaversity.

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  6. That's not for them, that that's for their parents or grandparents. So for us, we launched this company in a very unorthodox way. Nobody launches a fintech company with no product. And that's exactly what we did. We said we're going to launch a fintech company, but first we're going to build a brand, the community, the trust. We're going to do a lot of social listening. And once we learn from that, we're going to build from that our financial products and services.

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  7. So what's crazy is if you look at the latest GDP report, right, Latinos contributed $2.8 trillion to the American economy. So when we say why aren't Latinos fully, fully banked, it's not because of lack of economic power by any, any means. It is by that lack of trust. So even when Latinos are in the workforce, even when they have college degrees, there's still 60% not fully banked or not fully utilizing the financial services of this country. And it comes to trust. And I talk to a lot of my colleagues from the big fintech companies who say we don't understand why we can't acquire young Latinos at scale. We've done everything, and they always say, including translating our app or our website. And I think, oh my gosh, that's the last thing you need to be doing because that sends a very powerful message.

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  8. A beloved family member, if they would have been knowledgeable in finances, coaching you along the way. So it's not dry, it's not boring, it's not hard to understand, it's very fun and it's very engaging. So we wanted to build that, particularly for young Latinos, because they're the ones who are managing the financial accounts for older family members. So empowering them would empower an entire family and community.

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  9. So Suma is a platform where you're able to come on and get a financial checkup, whether it's via an app or web-based, and it tells you where you stand. So you can improve what you can't measure. So that's the first place of business. After that, we're able to coach you on your phone on what are the everyday changes you should be making to improve your initial measurement, whether that is upping your credit score or paying off debt or getting your emergency savings account in a better stage or start investing. So it depends. It's very personalized. It's AI enabled. So the more you use it, the more it learns from you. And it's literally able to have a personal coach on your phone 24 hours a day. But it's very in culture. So it has the voice of your grandma or of your mom or someone.

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  10. Oh yes, in the middle of the pandemic. I mean, I had employees that I met a year after I had hired them. I raised capital with people to this day I've never met in my life. So this was total lockdown, no vaccines, no meetings. So it was a very interesting time, but it was also the perfect time to start a company, to help Latinos understand their finances. There's so much there when it comes to wealth building in our community. There's so much distrust in financial institutions, I would say that's something that cuts across all generations because we come from a lot of financial trauma from our countries of origin. Some of us still remember the day our parents lost it all in a devaluation. Or one day the president would announce there's no more US dollars in the country. So all your US dollars are gone, like out of nowhere.

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  11. Yes, that's absolutely fair to say, and it was definitely not my intention to do another startup in my fifties. It's very unorthodox for anyone to do that. So, you know, it's the pandemic and looking at the stats and looking at the numbers on how Latinos were the hardest hit not just with deaths, but also with economic hardship, there was just too many signs every day pointing me to do this.

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  12. Absolutely. I mean, views were the metric. Even if you had no relationship with that audience, you know, we had at some point at the height of Me to a hundred million uniques. So 100 million uniques, think about it. There's not a hundred million Latinos in the US, right? But we had a lot of crossover with African American audiences, Asian, white kids as well. But if you told me, do you have the phone number, the email, you know, how do you contact them again? No, I mean, that was controlled by the networks because, again, we were on that sort of rented platform territory. So you had the scale, but you did not have direct relationship with them. And I think that's what made it very hard for a lot of these digital media companies.

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  13. Everything, also your economics talking about business model, because when we launched these YouTubers could not monetize on their own, they needed to be a part of a network. Then one day, without any warning, YouTube decided to let them monetize on their own. So it's like, oh, great, now that I have everything set up for me, now I have the relationships with the brand that, you know, the meatus of the world or the BuzzFeeds brought to me, I can go directly to them. I don't need to give any cut to anybody. And thank you very much for your service. So that was tough.

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  14. Of course. And we saw how many of the companies that did make it to your point started to charge for subscription fees, right? Started to go direct to consumer because the model of an MCN or the model when you are on rented territory, for the lack of a better word, you're on YouTube, you're on Facebook, those algorithms change, those rules change.

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  15. Yes, that was it. And there was no way you could touch that, right? So whenever I would bring up to my board, hey, should we be doing direct to consumer anything? Should we be charging one dollar for premium content that people could not get enough of? The answer immediately was absolutely not. You cannot disturb those numbers. You know, that's how you're going to be valued in the next round and in the next round. And as concerning as it was for a lot of us to say, well, no one ever asked us when we're going to be profitable, the board would laugh of like profitable. Nobody's profitable was the answer I would get, right? And I was like, wow, like I've always been profitable. So it was definitely challenging to wrap my head around that. And then obviously, you know, we raced up to a series D before we sold the company.

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  16. They really put a premium on views, as we were talking about earlier, right? Yes. And the more billions of views you had, even if those views were, like I call them empty calorie views.

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  17. I think the biggest challenge was staying stuck in thinking that our revenue should be advertiser driven only, you know, doing advertising and hand holding for brands, particularly with a demo that they knew, but now it was so different trying to convince him that the way they've been doing things should progress as well as a community had that was tough. It took a lot of time. It's very unscalable. Every day it was a challenge of why we matter as a community so that over-explanation to those CMOs of why they should not be under investing in us and why not only they should be looking into a Univision or a Tele Mundo when they were targeting young audiences. I think the other thing was venture capital at the time and we were venture back like all of the other digital media companies.

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  18. To many in our community, so it was, yes, they would come to us for the creativity for sure, but also for the thought leadership. And, you know, we loved doing that. We loved showing that there was a different type of Latino to target in our country. That was very, very valuable as you think about future-proofing any brand into the future.

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  19. Yes, we did a lot of brand partnerships. You know, it was a very different concept for a lot of the brands to think about in culture. They would always think in language, always, always, always. And in language worked maybe twenty, thirty years ago when the majority of the US population was pretty much an immigrant population, right? Now the growth is nativity as US born. And we know we are super, super young. And that's a very different demographic than the one agencies or brands we're targeting 20, 30 years ago. So we were sort of like the go-to media company for them to really understand this demo. And we also did a lot of research around who is this demo, what are they like, why are they such a big influence on older family members and their communities? Why that ROI is never one-to-one but one?

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  20. So those little things that were like just you grow up, but you never see in media, there was a place where you would see yourself and your family represented and that was very, very powerful. I think that's the biggest accomplishment we had with Mito. It was that our community really felt that they belonged. And the questions that we get all the time was like, Me too, where have you been all my life? Or finally a brand that gets me, right? And that's just very, very powerful.

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  21. So that was the voiceover, right? It's like Micho. You know, I was taking out the laundry or I was cleaning this, you know, it was just very inculture. You felt that emotional connection immediately. Now, the recipe was identical. There wasn't really anything different on the recipe from taste made and our recipe, but there was a lot of cultural emotional connections there from the images that you saw, from the way the mom spoke to the kid or the grandma to the pictures on the wall. There was just something there from the pot that they used and everything that you do has that emotional connection. Everything that we do had that emotional connection. It didn't matter if it was food or if it was beauty or if it was voting, right? It always had sort of like what is at stake for us? What is different from us? If you open a jar of butter in a Latino household, we always make the joke it'll never have butter. It will always have beans.

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  22. Yes, I'll give you a perfect example. And we actually had this in our Me Too sales deck, right? So, for example, Tastema would have a video on how to make a ros con leche rice pudding, and so would we. Their video would be beautiful, beautifully led, pristine recipe, it was all good, and it was fine, it was for the general audience. Our video would have the typical tablecloth that you would see in a Hispanic hat without us saying this is for a Latino. It had so many visual cues. We did ours differently. We had somebody call the mom or the grandma on the phone to give them the recipe.

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  23. Of the world, they already have this content in English. They already have the makeup tutorials in English or the food recipes or whatever it might be. So we learned that the secret sauce, and I apply this to this day on any company that I build was doing in culture more than in language. So, yes, now all the content is primarily in English, but we like to say it's in culture. So if there's a grandmother who, you know, normally would speak Spanish, that's perfectly okay. But if somebody doesn't speak Spanish, like the youngest generation tend to not do in this country now, we let that be organic too.

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  24. So it is now, and that's a big learning. So I made the mistake and we all made the mistake as co-founders to think that if you were starting any sort of media company for Latinos, it should be in Spanish. And I'm an immigrant, right? So I came in straight from Mexico City to open this company here thinking, okay, if it's on the internet, if it's on YouTube, even if it's in Spanish, it's going to attract young Latinos. And it didn't. I remember our first board meeting. Our investors were like, Why is your audience so old, right? And our audience was 50 plus when we said were the alternative to Univision when we were raising capital. And it was because of that. Young Latinos in the US speaking English and prefer to consume their content in English. So very quickly, we sort of had the problem of thinking, well, if our contents in English, how are we going to differentiate ourselves from the bus feats of the world, from the Hufftington Post?

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  25. What online? It was super easy. You know, there's lists of like, okay, who are the top 100, 1,000, 5,000? And then, you know, you would contact that. That was definitely not hard.

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  26. Because you would bring them into the network, all the talent, with that promise of, listen, we're going to bring you these great deals that you don't have today and you'll be able to monetize all these millions of views that you have every month in your channel. So building the sales team was important, building the tech behind it to really be able to optimize when should they be posting, at what time, what hashtags, who should they be collaborating with for growth, because also you promised to help them optimize their channels and their businesses. So, you know, we had 7,000 of the top Latino creators in our network.

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  27. Yes, so I would say our biggest expense was not the content creation because we started as an aggregator, so we had the content from all these independent talent. So that was great. That was not our biggest expense. But our biggest expense was a sales team. And a sales team is not cheap.

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  28. Then easy to reach her number and to aggregate the top talent at the time. And then after that we decided to raise capital. And that's a whole other story, which, you know, I never raised capital before. Venture capital, which is a whole other beast than what I was used to.

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  29. We started organically, so we got it off the ground really within the same office of our production company and it was my husband and I and we just thought listen let's just see where it goes let's start talking to all these because at the time the multi-channel networks were made up of a lot of talent so it was really that you were curating different youtubers at the time particularly for the youtube mcn and then you would aggregate them with a promise that you would you know bring them advertising dollars at that time they could monetize on their own they had to be a part of a network so we started it just you know us making phone calls to the biggest names at the moment and you know once we had some scale i remember our goal was like let's have 30 million views a month at the time views was symmetric and because there was nobody else in the space it was very very quick and

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  30. Yes, but you know, on one hand, you applaud the effort for having that. On the other one, it's always an afterthought. It's never the main focus. You know, even BuzzFeed, BuzzFeed had a really good vertical for a while, but it wasn't their main business. It wasn't their sole focus. And, you know, when you look at the demographics of this country, you think, oh, wow, like, That's definitely the growth demo. Why is nobody thinking that this is a big enough demographic to pay attention to?

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  31. Change Hollywood or hack Hollywood in a way, and be able to incubate ideas and stories and characters and show and prove to Hollywood that there was an audience for them and that they should be hiring more people like me to have their stories told.

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  32. And even back then, the census numbers would really show how this was a very thriving and very young demographic and the fact that nobody thought that that was an important growth market was sort of head-scratching to us. So at that time, it was a combination of that, the opportunity that all these multi-channel networks were exploding and also that I could see every day in my work as a producer how things were never going to change in Hollywood, even if heads of networks in studios would say we can't find the Latinos and you would bring them to them, they would still not hire them. So I felt that this was my big opportunity to sort of

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  33. Yeah, it was exactly that time. It was the time of the MCNs, the famous multi channel networks. And there was a multi-channel network for everything, if you can remember, right? For people who love video games, for people who loved makeup, for people who loved food. And it was a little bit mind-boggling to see that there was nothing for Latinos.

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  34. Yes, I think it was more me going to pitch to them than them coming to me, especially since, you know, nobody knew me at the time. And, you know, it was a really great run for many years, but it was also that same time where I felt incredibly frustrated with seeing how few people like me were able to produce shows that portrayed Latinos in an authentic way. So, you know, that's when digital came about and I started to get incredibly interested with that democratization of who gets to tell stories and how if you have a phone, you absolutely have an opportunity. And that's how I sort of started thinking about my next company that went beyond the production company.

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  35. All kinds of shows, I mean from sport, documentaries to entertainment shows to food and lifestyle, music, documentaries. So I think a little of everything I had to become an expert, although my career had been much more in entertainment. Once you're in an independent producer and you're hustling, you're like, I can take on any job, any gig. So yes, so even things that I was definitely not an expert like sports, I became one.

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  36. Yes, so I came to the US because Robert Rodriguez, who was a very unknown film director at the time, encouraged me to sell my car, and with the proceeds of that sale to shoot some pilots and come to a place in the US called Natbi, which is a big convention place where people go and try to sell their TV shows. And I did that. So I went with my 3mmis under my arm, my MTV award, and a VHS tape with some sort of, you know, demos to try to get my career going in the US. And as luck would have it, I sold my first series to Discovery Channel. And that's how I started my career as an independent producer in LA.

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  37. Until I got pretty much fired from my job. At the height of my career, I had just won my three MEs, my MTV Award as a director and a media correspondent award, and I still got sort of canned. And at that time, you know, it was tough being a woman and it was tough being a woman with an opinion. So if you had that combination going on for you, you tend to be sort of put in a place to cool you off, right? So I was put in something that they called the refrigerator. So that was sort of that mystical place, the refrigerator. You would still get your salary, but you would be put there to be cooled off. And today I would take that deal in a second and do philanthropy. But being 23, 24 years old at the time, I was just, you know, younger and more arrogant. And I was like, absolutely not. I quit and I'm moving to the US. And that's how I came to the US. It was at a really perfect time.

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  38. Yes, that is right, so I moved to Mexico City for work right after college, and I worked at the only TV network that existed at the time, and I had an entertainment news show. So think about like entertainment tonight, but the Mexican version of that. And I did that for a very long time until

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  39. And as a local news, it wasn't anything extraordinary. And I got to be a reporter first on anything that was related to entertainment, arts and culture. And then after that, I launched my own TV show locally, which because it aired in the US, I was able to get nominated for a few Emmys. So they were the first MEs that Mexico won, I guess, as a country. So that was a very big deal. And that's when I made the move to Mexico City right after college

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  40. Yeah, so it wasn't kids anymore because I was 15 at the time and I felt like I was a very cool teenager, not a kid. But yes, I was a kid. Fair enough.

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  41. Listen, it was a very big deal, particularly for the Latino community, because before Menudo, really Latino artists were pretty invisible in the US. And here this was this boy group from Puerto Rico that was so, so big. So it was a big sense of pride. Yeah. You know, you could like their music and everything, but I think for the entire community, it was like, you know, if they made it, we can do it. And it gave us that opportunity, that permission to dream bigger. So I think what they represented as a whole for the community was very, very important.

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  42. And it was a daily show in the afternoons, four to five. So I would ride my bike after school to the radio station. And it was an older guy who was a co-host called Superman. I never knew what his real name was, but he was super cool. So, Super Mine and I hosted this show, Laura Minuda, and I would get to say the name of the song and what time it was and some sort of commentary of what was happening with the band and the tour. So it was great. So I did that every day, five days a week after school when I was around third grade.

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  43. So I was in love with this kid from a boy band called Menudo, and this kid was Ricky Martin. And I thought that if I got into being a radio DJ one day when Menudo came to my small hometown, I could eventually meet the band and fall in love with Ricky and get married. So I had my whole life planned ahead of me at eight. So that's how I got into radio.

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