Overview of the Venture Capital Industry in Mexico – October 2017

Mexico´s Venture Capital Industry is composed by 63 Mexico based fund managers plus another 50 foreign firms that have done at least one transaction on the past 4 years. In sum, they have committed over USD$ 1.64Bn to be invested in the venture space, distributed over a diverse pool of VC stages and industries. As many of 46 funds are focused on seed capital, leaving the rest for later stages.

Regarding deal activity, AMEXCAP has record of 782 VC transactions for a total of USD$834Mn invested from 2010 to September 2017. We have witnessed a year-on-year increase on the number of deals since 2010. Actually, according to LAVCA, in 2016 Mexico led the region regarding PE/VC deal activity surpassing Brazil.

The industry saw its best year in its history in 2016 with the largest number of transactions with 182, representing USD$ 209Mn of capital invested. 55% of all deals were in the seed stage, 40% in series A and B and 5% were in later stages. This year however we have seen that 21% of transactions have been in this later stage, which accounts for the natural growth of our startups looking for further rounds of capitalization.

The fintech sector was the most active in 2016 with 66 transactions and over USD$ 87Mn capital representing a 42% of the total invested capital. We saw 39 different funds investing in 23 different fintech startups. For 2017 the amount invested to date is USD$ 62.9Mn in 35 transactions.

Interesting to mention that the number of startups with a woman cofounder operating in Mexico is increasing. There are 33 Mexican startups with a woman cofounder, which have been able to raise USD$31Mn since 2011 to date. 50% of these startups belong to the consumer services sector with USD$ 9.8Mn capital invested.

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