A Dive Into the Startup Ecosystem in Mexico City 🇲🇽
I’ve been in my new home of CDMX for three weeks now, and as I get acquainted with the LatAm start-up ecosystem I wanted to start writing more about what is happening here. So this first post will be dedicated to Mexico City, with upcoming posts in the next few weeks focusing on other cities in Mexico with blossoming ecosystems — Guadalajara, Monterrey, and San Luis Potosi; moving on to other countries in the region like Argentina, Chile, Colombia, Peru, etc... There is of course a lot of information already available online about the growth in the region in the last few years, so expect to see a lot of links giving credit to the original authors.
The Mexico ecosystem has grown tremendously in the last few years. Having led the LatAm region in number of VC deals over the last 5 years, with deal flow up 6x since 2011. Mexico’s tech scene has seen many factors that have contributed to its growth: (1) demographics and market potential, (2) strong, mission-driven entrepreneurs, (3) regulatory support, and (4) proximity to the United States. (Read more about these factors fueling the Mexico ecosystem on Anna Diaz’s post.)
Even American funds have started to place bets in the region with Andreessen Horowitz investing in Rappi, a Colombian delivery service currently growing aggressively in Mexico. Accel Partners and QED investing in the Series A round of Cornershop, a grocery delivery startup. It will be interesting to see more American VCs starting to get involved in the region, and one of my personal objectives is to bring American angels into the earlier funding stages. (Read more about Silicon Valley’s interest in the region in Julie Ruvolo’s Techcrunch article.)
The interesting thing from my perspective has been to see the individual activity in different cities throughout Mexico. Below is a small compilation of some of the players leading the charge throughout Mexico City.
Mexico City aka CDMX (formerly known as DF)
With a population of 22m+ Mexico city is the fifth largest city in the world. As a stand-alone country, in 2013, Mexico City would be the fifth-largest economy in Latin America. Interesting enough it is said to be Uber’s third largest market.
- 500 Startups 💸 Last week to apply for batch 8! 💸 The most active seed stage fund in LatAm, with over 100 investments in the region since 2011.
- Wayra Mexico Telefonica owned accelerator and fund with offices throughout LatAm.
- NXTP Labs Founded in Argentina in 2011, with operations throughout LatAm.
- Numa Acceleration programs in 8 different cities; headquarters in Paris.
- Startup Mexico Government initiative accelerating companies, equity free.
- MassChallenge (non-profit, no equity, no funding) Global accelerator with a presence in the US, Switzerland, UK, and Israel.
- Angel Ventures is an early-stage venture capital investment fund.
- ALLVP invests in Latin American founders and is an early-stage venture capital fund.
- Capital Invent is a VC fund investing in consumer internet startups.
- Dalus Capital is an early-stage and growth equity fund focused on supporting the best entrepreneurs creating innovative businesses in Mexico and Latin America.
- Dila Capital provides Mexican entrepreneurs with seed and early stage venture, and debt financing investments.
- Ignia is an early-to-late stage venture capital firm that invests in innovative solutions for the emerging middle class in Mexico.
- Jaguar Ventures is an early stage Latin American venture capital firm.
- Variv Capital is a venture capital firm that invests in early stage technology companies in Mexico and Latin America.
Some Notable Startups in CDMX:
- Bitso is Mexico’s first Bitcoin exchange.
- Boletia is an online ticket selling platform.
- Clip is a merchant mobile payment company that aims to simplify commerce through technology.
- Conekta is a payments engine for LatAm to process online and offline payments with API integration.
- Cornershop is an on-demand grocery delivery service for the Latin American market. (**post coming soon on unit economic advantages in LatAm in the delivery space)
- Konfio is an online lending platform for micro-business loans.
- Kubo is a P2P lending platform.
- Nubity manages and monitors cloud servers and apps through a centralized platform and provides 24/7 support.
- Rocket connects consumers with the best credit that they can afford.
- Yogome develops educational tablet and mobile games to help kids ages 4 -10 learn in a fun way through technology.
Next up... Guadalajara 🇲🇽
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The postings on this site are my own and do not necessarily reflect the views of 500 Startups.