From hand-sewn clothing to managing high-tech investments – A Journey with Beto Pallares

Ebetuel (Beto) Pallares is the President and CEO of Joseph Advisory Service, an early-stage investment advisory firm. He was born in Cd. Juarez, Chihuahua, Mexico, and raised in El Paso. He began his career as a management consultant focused primarily on the telecom industry. He’s also been a start-up entrepreneur, a telecom executive, a restaurateur, a nonprofit director, a venture capitalist, and a professor. Beto’s investment expertise is in seed and early-stage venture investments and venture fund creation. He currently advises a family office on fund commitments and direct investments into private operating companies and is the general partner/fund manager of two funds.

Beto enjoys being involved in entrepreneurial transformation, particularly in the Borderplex region, where he incorporates best-in-class mentorship, tech tools, and resources for start-up founders and aspiring investors. He taught entrepreneurship and strategic management at New Mexico State University and held the Bill and Sharron Sheriff Endowed Chair in Entrepreneurship (2018 to 2023). Beto is a Kauffman Fellow and a Presidio Fellow and, over the years, has served on the board of over two dozen private companies. He also served on the board of Exagen, Inc. (NASDAQ: XGN) until June 2024.

Beto holds a Ph.D. in International Business Strategy from the University of Texas at El Paso and an MBA. He received a B.A. in economics from Brandeis University. Beto frequently lectures internationally on topics ranging from tech ecosystem development and start-up mentorship. In his free time, Beto fantasizes about playing percussion with a touring salsa band and writing poetry in a dimly lit tavern.

Beto Pallares is a self-proclaimed “Adventurprenur”. His evolution from modest beginnings to savvy financial stewardship depicts a journey woven with resilience, family values, and valuable lessons on money management.

Reflecting on his formative years as an immigrant from Juarez, Chihuahua, Mexico, Beto paints a vivid picture of the transformative lessons learned within the walls of his childhood home. "When we immigrated, it was ten of us. I was one of eight siblings. Ten of us living in a two-bedroom, one-bathroom house. We had one car - a single bench truck. It was 1974, I’ll never forget it, and all 10 of us would pile in that truck.”

The Pallares family would take many trips between Juarez and the US with Beto as the 4 year-old. “When we got to the border crossing, the INS officer would count out one through nine and say, “there's one missing,” and my father would point down to the well with the clutch and brake and gas - that's where I was. He would say, “here’s the little one, right here by my feet.” I sat there for three years. That was the only place I could fit.”

We arrived in the US with little more than determination and a strong work ethic," Beto shares. "My parents' sacrifices instilled in me a profound understanding of the value of hard work and perseverance."

He recounts the days when his Mami diligently sewed clothing for the family. "As I grew up, she would sew all our clothing. I remember being put off by that because she didn't know how to sew on the pockets on the inside. So the pockets were always sewn on the outside of the pants. I hated that because you have this outline of the pocket outside and I’d stick out at school. But my Mami's resourceful sewing taught me the importance of frugality and the art of making the most of what we had.”

Beto’s first lessons in financial literacy and investment prowess remain his guiding pillars. "Growing up, I witnessed firsthand the impact of prudent financial decisions," he underscores. "My father's meticulous savings habits and my mother's resourceful budgeting shaped my understanding of wealth management from an early age."

One poignant memory that resonates with Beto is the family's approach to necessities, like food and shelter. "We learned to appreciate the value of every dollar spent," he reflects. "My father, a skilled butcher, ensured we always had meat on the table – even if it was just baloney. That was wealth to him, to have meat on the table. He taught us about hard work, dedication, sacrifice, and that financial prudence is about more than just numbers – it's about creating security and stability for your loved ones."

Transitioning from his early days riding on the floor of his father's truck to working with startups and managing investments, Beto reflected on the evolution of his investment ethos. "I look for entrepreneurs who value every dollar they receive in investment. The way a startup chooses to utilize its capital speaks volumes about its fiduciary responsibilities."
With a focus on fostering good governance and prudent financial practices, Beto emphasizes the importance of diligence and accountability in investment decisions. "I believe in building a strong relationship between managing money and understanding the value it holds," he remarked, highlighting the significance of transparency and responsible financial stewardship.

While discussing his portfolio, including ventures in tech, financial technology, and cybersecurity, Beto showcases his commitment to innovative and impactful investments. "I prioritize investments that not only have the potential for financial growth but also contribute positively to society and create opportunities for others." His investment focus has been on AI tools, chemicals, and materials sectors.

“I've been investing in AI for three years now, especially in Fintech long before it became a thing. I look at opportunities that have credit or interest rate exposure. I look for tools that allow individuals or businesses to do more with the infrastructure that they need to put in place. So tools for banks are super interesting to me and we're making several investments in that area. Tools for people who want to build wealth are also important. I’ve invested in a company called FinHabits because that's exactly what they do for the Latino community.”

Beto shared a deeply personal perspective on legacy and wealth. "Wealth, to me, is more than material accumulation. It's about creating opportunities, contributing to meaningful causes, and leaving a lasting impact for future generations," he says. "True wealth lies in the ability to give back and create lasting memories and positive impacts."

"My parents' sacrifices and values continue to shape my approach to finance and wealth creation."

With a profound commitment to prudent investments, meaningful contributions, and personal growth, Beto Pallares exemplifies a journey anchored in wisdom, integrity, and the pursuit of financial excellence.