Mexico coming in hot: The startups and entrepreneurs spearheading the country’s technological transformation
- Mexico is the second country in Latin America* in terms of the size of its entrepreneurial ecosystem, and 37th in the world ranking.
- Mexico City and Monterrey have made their way into the list of the top 10 most entrepreneurial metropolises in Latin America and the Caribbean.
- The pull of unicorns and a startup-friendly environment make the country a key player in global entrepreneurship.
* Second only to Chile, according to StartupBlink data in 2023. Hispanic America includes Spanish-speaking countries in Latin America and the Caribbean. Brazil is not included in this category.
Investment snapshot
The global slowdown in venture capital is also noticeable in Mexico, but Mexican startups and scaleups are proving their capacity to attract venture capital.
- Mexico City
- Monterrey
- Puebla
- Guadalajara
- Chihuahua
- Cancún
- Santiago de Querétaro
- León
- San Luis Potosí
- Hermosillo
The podium of Mexican entrepreneurship
Three sectors dominate investment in Mexico through their ability to explore markets and strategic opportunities such as finance, e-commerce, and logistics and transportation.
- 57%* | Fintech | Boosting the banking sector
10M USD | Average investment ticket in fintech startups.
650 Fintech companies in México in 2023 (+26% more than in 2022)
Open finance and API | Most widely used technologies (60%)
- 37%* | E-commerce | New channels and sales opportunities.
Logitech | Optimisation, lower cost and supply chain efficiency.
- 12%* | Other
*Percentage of venture capital raised by Mexican companies in 2022
Land of unicorns (today and tomorrow)
Mexico is now home to eight unicorns and several dozen startups that could soon reach this coveted status.
The unicorns
Companies valued at $1 billion or more before going public.
- Kavak | E-commerce | Buying and selling used cars online. The first Mexican unicorn. Valuation | 8.7B USD
- Bitso | Fintech| Cryptocurrency exchange and trading. 2.2B USD
- Clip | Fintech | Digital trading and payments. 2B USD
- Konfio |Fintech| Online financial services platform. 1.3B USD
- Merama | E-commerce | Acquisition and expansion of digital commerce businesses. 1.2B USD
- Stori | Fintech | Credit cards with no annual fee. 1.2B USD
- Nowports | Logitech | Digital freight forwarder. 1.1B USD
- Clara | Fintech | Expense management and corporate credit cards. 1B USD
The ‘soonicorns’
Companies founded in 2012 or later, backed by VCs and with a valuation of more than 100M USD or a last equity round of more than 20M USD.
38 Mexican startups boast this status, including:
Other players in the ecosystem
The State, local governments, various hubs, accelerators and incubators, as well as other strategic partners round out and drive the vibrant Mexican entrepreneurial ecosystem.
- Associations and communities | Asociación de Emprendedores de México (ASEM) Endeavor México, Fintech México.
- Public initiatives | COMECYT – EDOMÉX Young Entrepreneurs and Innovators Programme, FONDESO business support programmes, MIPYMESMX.
- Accelerators| Mass Challenge México, 500 LatAm, Impact Hub Monterrey.
- Academia| National Centre for the Support of Small and Medium Enterprises (CENAPYME) at the University of México, Eugenio Garza Lagüera Entrepreneurship Institute of the Technological Institute of Monterrey, Centre for Entrepreneurship and Business Acceleration (CEAN) of the Ibero-American University.
- Local hubs | Vallejo-i Technology Development and Innovation Center (CDIT) in Mexico City, Ciudad Creativa Digital Guadalajara, Startup Chihuahua.
- Investment funds | IGNIA, Wollef, Dila Capital.
- Other financial partners | BBVA Spark México, Capital Emprendedor (the Nacional Financiera’ fund), Finnovating.
Support for entrepreneurship, a public policy
Mexico has excelled in the global entrepreneurial landscape by supporting the creation of startups through innovative legal mechanisms.
- Fintech law | Pioneer in Latin America, it established a regulatory framework to boost fintech transparency, competitiveness and security.
- Simplified Joint Stock Company (Sociedad por Acciones Simplificadas, SAS) | A new type of commercial company for the creation of companies in just one day.
- Prompt Payment Initiative (Iniciativa de Pago Oportuno) | Currently being processed, it would reduce the term to make payments to SMEs to 45 days to improve their liquidity.
- Entrepreneurship Law (Ley de Emwprendimiento) | Proposed by the Employers Confederation of the Mexican Republic (Confederación Patronal de la República Mexicana, COPARMEX) in 2022, it would aim to support the consolidation of SMEs.
A country of entrepreneurs
SMEs contribute 42% of the gross domestic product (GDP) and generate 78% of jobs, according to data from the National Institute of Statistics and Geography (Instituto Nacional de Estadística y Geografía, INEGI).
Entrepreneurship drives Mexico’s economic growth, job creation and attracts international investment…
…But it also promotes a level playing field for all through accessible solutions.
An exciting ecosystem at the forefront in Latin America and the world. A landscape of successful initiatives, companies and solutions in the eyes of venture capitalists. This is Mexico: an oasis for entrepreneurship.
Sources: Endeavor, TTR Data, Startup Blink, BBVA, Expansión, CB Insights, Finnovista, LAVCA, Soounicorns Club, Ministerio de Economía de México, Forbes México, Bloomberg Línea
