Top 5 Venture Capital Funds in Mexico

Mexico is one of the countries in the region that leads the startup industry, which generates large Venture Capital funds to turn their gaze to this nation. Its proximity to the United States also allows its entrepreneurs to have a more global vision and there are US Venture Capital (VC) funds with a presence in Mexico.

This dynamic is reflected in the report prepared by Cuantico VC, an investment platform focused on mapping and promoting emerging companies in the region, entitled: "State of the VC Industry in Latin America in 2023", which details the growth of VC investment in Mexico. in the last 5 years.

According to this study, the Aztec country had an investment volume in 2018 of US$D305.00M; in 2019, US$D1,000.00M; in 2020, US$D1,000.00M; in 2021, US$D4,500.00M; and 2022, US$D3,400.00M.

Regarding investment rounds, the report indicates that, in 2022, Mexico reached a total of 154, in which 5 large investors participated, which we will describe below.

Angel Ventures

This company emerged in 2008 as a network of angel investors from the growing trend of startups in Mexico. His main work focuses on investing, advising and monitoring emerging projects throughout their growth process.

It was in 2013 when the first Angel Ventures fund called Co-Investment Found I was created, which raised more than US$20 million that was invested in a portfolio of 21 companies.

In addition, it is focused on retail, technology, fintech, communication companies, etc., but it is also in constant search for entrepreneurs who are passionate about addressing and solving current problems through a disruptive and innovative business model, breaking with all that is traditional. .

Angel Ventures is backed by a multidisciplinary team with extensive experience in the development and growth of companies, investment funds, mergers, acquisitions and strategy development in multinationals.

ALLVP

On the Mexican Stock Exchange (BMV), Antoni Lelo de Larrea Venture Partners (ALLVP) is one of the most active Venture Capital firms in the venture capital industry. Through its funds, the entity invests in companies that develop innovative, profitable business models that use technology.

IGNIA

It is one of the largest venture capital investment funds in Mexico, focused on supporting ventures in any industry and stage of development, that have a value proposition that changes the way they do business. Its investment focus includes sectors such as Fintech, Media, Education, Health, SaaS, among others.

INVESTO

It is a company that connects the capital of its investors with the talent of the founders for a higher purpose. Within its website, INVESTO states that its goal is to help diverse entrepreneurs build strong businesses by guiding them through the complicated maze and roller coaster of building their business. Also, help founders build the cornerstone of their company culture.

DILA CAPITAL

Venture capital firm, whose investment focus is on Seed Rounds and Series A. In February 2021, it raised 35 million dollars to give life to its DILA IV fund, with which it seeks to invest between 750,000 and three million dollars in companies pre-series A and series A seeking to do business in Latin America.

DILA Capital was founded in 2013 by two Mexican businessmen, Alejandro Diez Barroso and Eduardo Clavé. To date, they have invested in 42 early-stage companies in Latin America. Among its success stories are the courier firm iVoy, the online eyewear business Ben&Frank, the digital payment platform Kushki and the shared transport company Urbvan.

More companies are interested in Mexico

Additionally, major tech companies like Amazon, Netflix, and Stripe have opened offices in Mexico. This means not only more investment and attention to the Mexican market, but also a flow of highly qualified personnel.

Another particular feature is that startups born in other countries in the region, such as Colombia, Chile or Argentina, almost always have Mexico as their second target market.

The Fintech startup sector in Mexico

According to Finnovista Fintech Radar, Mexico has almost 400 fintech startups, making it the second fintech ecosystem in the region after Brazil.

A financial system dominated by a small number of banks and a large population that uses cash makes Mexico a very attractive market to do business and invest in technology to improve financial services.

In fact, the best-known success stories of startups in Mexico are fintech, among them is Klar, which obtained type C financing for USD$90M in June 2022, likewise the ecommerce company Jüsto, managed to raise capital for USD$152 M in series B, this according to the report of Quantico VC.