Accelerators and Seed Funds Sprouting Up in Mexico
By Celeste North of emprende.la for Opinno. Emprende.la focuses on entrepreneurial innovation in Mexico.
In the past two years, many seed funds and start-up accelerators in Mexico have sprung up, creating new opportunities for small companies that otherwise would have a though road in developing viable products.
In building a sustainable start-up ecosystem, several key ingredients are needed. In Mexico, funding has been a constant complaint among those who are just starting out and need that small push to go from idea to prototype. For years, seed funding was unavailable for technological companies, but new players are opening opportunities in the country.
A Silicon Valley fund for Mexican start-ups, Mexican VC is one of the most notable and newest players on the scene. This fund was created by David Weekly, founder of PB Works, the co-working space Hacker Dojo and co-founder of Super Happy Dev House, a social event for hackers and thinkers to work together. Cesar Salazar, Santiago Zavala and Lisa Seeman are also behind this project.
As a part of their program, companies receive $20,000 in seed capital in exchange for a 15% equity stake. Last year they chose seven companies out of 75 applications to be part of their first round of funding. Besides the investment, these companies have access to a group of mentors that follow them through the six months the program lasts. Next March they’ll have their first Demo Day in San Francisco to conclude, in a way, the program. Companies are expected to raise a second round of investment to scale their products and services.
Wayra is Telefonica’s accelerator for Latin America and Spain, which also started in Mexico in 2011. This program is intended to promote entrepreneurship and innovation in technology in the region. During Campus Party Mexico last July, they selected ten start-ups to receive between $30,000 and $70,000 in capital plus an intense mentorship program and a co-working space for all the companies.
Wayra recently announced a global partnership with the Massachusetts Institute of Technology (MIT) where Wayra’s companies will have access to MIT’s training and mentoring program.
Another interesting player is Startup Factory, which defines itself as a “seed funding for disruptive startups.” This program is the most flexible as the group decides to invest differently in each case and always below $120,000. Their program lasts 3 to 4 months and start-ups are expected to work intensely in developing a product, validate their market and acquire costumers at a very fast pace. They also receive office space and mentorship. This program is led by Hugo Stevens and Manuel Landa.
With all these organizations, it sure looks like an exciting time for the region. More opportunities are becoming available for people in the region with interesting ideas and the drive to make them a reality. Mexican talent is starting to catch the eye of investors in the region and Silicon Valley, the challenge is no longer finding investment but rather building a community where learning empowers entrepreneurs.
Related posts:
1 Comment
Trackbacks/Pingbacks