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E204: Going All In: The Risks and Rewards of Concentrated Investing
Episode 204
In this episode I speak with Rafael Costa, who co-founded Across Capital to back category-leading software companies across the U.S. and Latin America. We dive deep on the Brazil tech flywheel — from why the central bank and Pix have accelerated fintech innovation, to the infrastructure winners like QI Tech that are becoming foundational rails for payments, banking and credit. Rafael walks me through Across Capital’s concentrated, high-conviction approach (a ten-company portfolio, deliberate sizing, then backing winners over time), how they underwrite downside protection in growth equity, and what AI actually changes for regulated industries. Along the way he shares practical diligence habits (the “what really matters” slide), how they build conviction over ~17 months, and one piece of advice he’d give his younger self about focusing on the present to compound relationships and learning.
-- Highlights:
- Why Brazil’s fintech moment is real — PIX, an innovative central bank, concentrated incumbents, and huge addressable markets.
- QI Tech: Across Capital’s early/high-conviction relationship with a Brazilian financial-infrastructure platform (Rafael says it was the fund’s first investment and has become a major position). Recent press shows QI Tech reached unicorn status and raised follow-on rounds with General Atlantic; Across Capital participated.
- Why Rafael runs a concentrated, 10-company portfolio — concentration forces clarity, deeper diligence, and the ability to back winners with outsized follow-on checks.
- Underwriting discipline: the “what-really-matters” slide — pick 3–5 drivers, re-underwrite objectively, and size up when the drivers out-perform.
- How AI affects growth equity: less about replacing regulated businesses and more about enabling them (efficiency, automation, product expansion) — attractive for companies in fintech and financial infrastructure.
-- Guest Bio: Rafael Costa is a General Partner at Across Capital, a growth-equity firm that invests in category-leading software businesses across the U.S. and Latin America. Before Across, Rafael worked on growth teams at Vulcan Capital and Summit Partners and started his career in investment banking. Across Capital lists software and growth equity as its core focus and includes companies such as Qi Tech in its portfolio.
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-- Stay Connected: X / Twitter: David Weisburd: @dweisburd
LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Rafael Costa: https://www.linkedin.com/in/rafael-costa-61bb479/
Links Across Capital: https://www.acrosscap.com/
-- Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.
(0:00) Introduction (1:34) Evolution of Brazil's tech ecosystem and fintech landscape (6:54) High conviction and concentrated portfolio construction strategies (12:09) Growth equity insights: Consistency, power laws, and sizing strategy (17:53) Institutionalizing investment discipline and exploring market leaders (22:55) AI's impact on growth equity and personal advice for success (27:04) Closing remarksPublished on 3 months, 3 weeks ago