The Ultimate Guide to Venture Capital in Mexico [Updated 2020]

Contxto – There is another, less explored, facet of the startup equation. Indeed, no idea gets far without the money to do the walking. This is where venture capitalists (VCs) come in. And as one would expect, Venture Capital in Mexico and the rest of Latin America is no exception.

Oft the mighty presences behind a startup ecosystem’s curtain, these specialized investment funds look to capitalize the most promising companies—complete with kick-ass pitch decks, scaling strategies, and a brilliant solution.

Related article: The pitch decks of 20 Latin American startups that raised over US$1 million

But that’s not the end of it.

More often than not—if all goes well, that is—the startup-VC relationship extends beyond that first round of funding. Indeed, after the first burst seed cash is sunk, a VC may decide to go on to Series A, B, C… funding, as a promising idea, becomes a fast-growing company, and then goes on to take over the world. 

Different VCs have different interests. Some like their startups young, others like growing or established operations. Some like to lead investment rounds others spread their cash around. Happily, Latam VCs are diversifying in their interests as the regional ecosystem integrates, grows, and diversifies.

Related article: Latam’s startup ecosystem. How we got here and what’s to come, according to Polymath…

The final idea is to get their “exit” (investment exit, that is); that magical moment when it all pays off and that little startup has multiplied wealth five, 10, 25 times over!

Or not… some will fail, and the money will disappear. But that’s how it goes in this venture capital game of ours.

Venture Capital in Mexico

The following info was sourced directly from the horses’ mouths—the VCs themselves. However, if you want the low-down in one place and in concentrated form, have a look at Contxto’s investor database.

So, without further ado, Contxto gives to you, a complete map of Venture Capital in Mexico!

ALLVP

ALLVP is an early-stage VC, meaning it likes to catch startups right at the time when they’re… well, starting. Of course, that is easier said than done. Sure, you may be expected to put less money in these startups, but these investments put the “venture” into venture capital. It is not for the weak of heart.

Luckily, ALLVP is more than ready to take on these challenges. Out of a total of 30 Latin America-wide investments, it concentrates over 75 percent of its portfolio in the country. It has a penchant for fintechs, with approximately 20 percent of their funding going into that particular industry.

But don’t be fooled, this VC can stomach most sectors, and often goes out of its way to be the lead investor in a round. This was the case with their spearheading Cornershop’s seed round, as well as the Series B for Dentalia.

Portfolio Cheat Sheet:

• Total startup investments: 30; of which 28 are from Latam; of which 22 are from Mexico
• Ticket size: Seed US$1-3 million; Series A/B US$3-5 million
• Notable startups: Petsy, Cornershop, and Nubity
• Key exits: Alkanza, Cornershop, Aplazame, and Weex
• Latest investment: Series B worth US$15 million into MUY on October 30, 2019

Angel Ventures Mexico

Angel Ventures is another early-stage VC with 51 investments to its name, all sprinkled across Latin America. Mexico is its main focal point, holding around 60 percent of this VC’s portfolio.

I am glad to see oft-overlooked Peru is number two on this list, although trailing at 20 percent. Fintech occupied most of Angel Ventures’ money with 20 percent of total investment going to that sector.

Portfolio Cheat Sheet:

• Total startup investments: 51; of which 46 are from Latam; of which 42 are from Mexico
• Notable startups: Kueski, Culqi, YoTePresto, CitySense
• Key exits: Aires de Campo, Fitco, SegundoHogar
• Latest investment: Descifra, just about…today (expect the article later today).

Avalancha Ventures

Avalancha Ventures is a smaller early-stage VC. It nevertheless has rapidly expanded on a global scale, with 11 Latin American startups making up its portfolio and an additional eight investments beyond the region. And yet, Mexico is still its main focus—80 percent of those Latam investments are in the fund’s homeland. Brazil and Argentina get the other 20 percent. 

Retail is Avalancha Ventures‘ specialty, followed by the internal management and financial services sectors. 

Portfolio Cheat Sheet:

• Total startup investments: 19; of which 12 are from Latam; of which 11 are from Mexico
• Notable startups: Bridgefy, Atexto, Unima
• Key exits: TBD
• Latest investment: Undisclosed round into Atexto in mid-January, 2020—just last week

Dalus Capital

Dalus Capital (previously known as Alta Ventures) ventures further into the developing startup game and so has become both an early-stage as well as a growth VC. Dalus Capital toes the diversity line, with just over half (52 percent) of its portfolio being exclusively Mexico-based.

Meanwhile, at almost 18 percent of its total investments, fintech has also taken a front seat for the VC. It is also a born leader: six out of its past nine rounds have been led by Dalus Capital.

Portfolio Cheat Sheet:

• Total startup investments: 35; of which 24 are from Latam; of which 18 are from Mexico
• Ticket size: US$1-10 million
• Notable startups: Clip, Kubo, Revelo, and Luuna
• Key exits: No exits
• Latest investment (in Latam): Series B worth US$15 million into Revelo on August 30, 2019.

DILA Capital

DILA Capital is a self-proclaimed multi-stage VC, meaning it will not be limited by your measly categorizations. Its system has certainly seemed to have shown results by the look of some big startups in its 37-strong portfolio—around two-thirds of which is Mexico-based.

Each of these has a “Latin aroma” to them, since even if some—like dvdendo—are not regionally based, all have some kind of root to Latin America. Again, fintech takes the investment cake at 20 percent of total investment.

Portfolio Cheat Sheet:

• Total startup investments: 36; of which 28 are from Latam; of which 24 are from Mexico
• Notable startups: Crehana, Boletia, Petsy, and Clickonero
• Key exits: Creze and Petsy
• Latest investment: Led round worth US$24 million into Resuelve tu Deuda on January 13, 2020

Ignia

Ignia is another multi-stage VC, present in practically all funding stages, from pre-seed to Series C rounds. Its global portfolio features over 21 Latin American companies, of which almost 70 percent is Mexican. I’m afraid to say that finance triumphs again with over 40 percent of this VC’s total investment.

Portfolio Cheat Sheet:

• Total startup investments: 38; of which 33 are from Latam; of which 27 are from Mexico
• Notable startups: Credijusto, Sr. Pago, DogHero, UnDosTres and Afluenta
• Key exits: Grupo Procesa, Brio and Jardines del Grijalva
• Latest investment: Led round worth US$2.5 million into Fondeadora on December 7, 2019

Jaguar Ventures

Jaguar Ventures has kept to the early stages as a VC. Its short but sweet list of 16 startups is divided into four main country groupings: Mexico, Colombia, Argentina, and Brazil. You’ll be surprised to know that Mexico is by far the biggest recipient of investment from Jaguar Ventures, at 54 percent total funding.

Where this VC doesn’t escape from the norm is in its sectorial subdivision of investment. Again fintech stands with a third of all funding, followed by e-commerce and SaaS (software as a service).

Portfolio Cheat Sheet:

• Total startup investments: 16; of which 16 are from Latam; of which 7 are from Mexico
• Ticket size: At least US$500,000
• Notable startups: Konfio, Liftit, Nubank, Loft and Brandtrack
• Key exits: Partial Exit from Conekta
• Latest investment: Loft in January 2020, alongside Andreessen Horowitz and Volcan Capital (Volcan’s first investment in LatAm)

Mountain Nazca

Mountain Nazca is also an early-stage VC. Their portfolio, though moderately sized, more diversified and spread out than most. Of their 21 Latin American investments under half are kept in Mexico.

As opposed to the majority of other VCs, Mountain Nazca is especially keen on investing in the e-commerce sector. Yet, they’re not obsessive about it; no single industry hoards over the 20 percent mark within this fund’s portfolio.

Portfolio Cheat Sheet:

• Total startup investments: 22; of which 17 are from Latam; of which 18 are from Mexico
• Notable startups: Platzi, Petsy and Albo
• Key exits: Creze and Petsy
• Latest investment: Series A for Albo on December 11, 2019.

Variv Capital

Variv Capital this early stage VC has almost broken the hegemony of fintech in investment. You see, both e-commerce and financial investments are tied at a crisp 21.4 percent each.

Meanwhile, this VC has really stuck to its guns geographically—90 percent of its investments lay in Mexico. The majority of the other 10 percent rests in Colombian startups.

Portfolio Cheat Sheet:

• Total startup investments: 17; of which 15 are from Latam; of which 12 are from Mexico
• Notable startups: Kueski, Conekta, and YoTePresto
• Key exits: Fancybox
• Latest investment (in Latam): Seed round worth US$1.8 million into YoTePresto on January 16, 2019.

Redwood Ventures

Redwood Ventures is an early-stage focused VC. Redwood seems to not have a favorite industry to invest in; its 12 investments are divided between more than 7 different industries. Of their 11 Latin American investments, finance and the hospitality & travel industry are the ones with more than one company in Redwoods’ portfolio.

Most of the startups they’ve invested in are from Mexico; 83 percent of their portfolio is located in Mexico, the rest of them are based in Puerto Rico and the United States.

Portfolio Cheat Sheet:

• Total startup investments: 12; of which 11 are from Latam; of which 10 are from Mexico
• Notable startups: Atexto, Sojourn, Billpocket, Crabi
• Key exits: No exits
• Latest investment: Undisclosed seed round into Zubut on February 14, 2020.

Honorable Mentions

These are other examples of Venture Capital in Mexico and honorable mentions of other important Mexican VC funds.

Toro Ventures

• Notable startups: Instafit and Pitz
• Key exits: No Latam exits
• Latest investment: Series A worth US$2.2 million into Bewe on December 6, 2018

KF Ventures

• Notable startups: Grin, YoTePresto, and 100 ladrillos
• Key exits: No exits
• Latest investment: Seed round worth US$150,000 into Parco on November 1, 2017

ArkAngeles

• Notable startups: Mercadoni, Flux QR, Fanbot, and Goonder
• Key exits: No exits
• Latest investment: Round worth US$1 million into Vexi on May 16, 2019

Investo

• Notable startups: Rappi, YoTePresto, Beek, SinDelantal, KiwiCampus, and Billpocket
• Key exits: KiwiCampus 
• Latest investment: Seed round worth US$2.5 million into Mureni on July 20, 2019

Related articles: Venture capital in Mexico!

-AG, SB

Researched by Salvador Betancourt-Ramírez with source material obtained through correspondence with the VCs or, upon non-response, cited from the funds’ websites.