The Search for Mexican Smart Capital

Update: See here the full updated version of this post, with more accurate numbers.

While searching for a series A lead investor, part of the process was to map all institutional investors in Mexico. This is what I am understanding from a simple week research on the State Mexican Venture Capital Market.

My initial thoughts on this I posted in a closed Facebook group, and this is a short recap of my learnings. I hope to write a more extended blog over the next weeks

The venture capital market in Mexico

  • 70 Funds found
  • 45 active funds (expanded portfolio in last 12 months)
  • In 45 active funds we got
    • 5 Accelerator (very small capital intensive startups),
    • 5 Seed,
    • 8 Growth and Series A,
    • 31 social, co-invest, very large funds.

I’ll try and extend the list and verify the data, this is what I got up to now. If you are a technology oriented startup not doing anything social and you did not join an incubator/accelerator program… you have 5 options to get seed capital in a country with a population of 115,296,767.

Mexican Seed Capital Market

Your seed options ($50,000 – $500,000 USD) are (in no related order):

  1. Angel Investment Network (active?)
  2. Alta Ventures
  3. Venture Partners
  4. Investomex
  5. Jaguar Ventures (no active yet)

Growth Capital in Mexico

If you actually survived it as a startup and made it to a growth stage and you need more capital you can knock on 8 VC doors (for $500,000 USD and more):

  1. New Growth Fund
  2. Alta Ventures
  3. 500 Startups
  4. Venture Partners
  5. Kaszek Ventures
  6. Gerbera Capital
  7. Latin Idea Ventures
  8. Jaguar Ventures (not active yet)

Not all these funds take all types of deals so my guess you end up with 3 options.

Consider that each fund takes like max. 5 companies a year on average, you got 25 seed funded (not incubator/accelerator) companies and up to 40 series A companies a year in Mexico.

The State of the Mexican VC market

So for the other X hundreds of startups created every year you can join an incubator or accelerator program (they seem to pop-up in every city), just make sure you are cashflow positive and huge margins to pay your own growth before cash runs out, or take family office or angel investments… since this seems stil the main source or investment cash.

You want access to this data source click here

You want to help improve this sheet because I suck at stats and research? … send me a message.