“Si de tu vecino ves la barba cortar, pon la tuya a remojar.”
If you’re based in Silicon Valley, it’s impossible to overlook the abundance of startup activity around you. As of November 2013, AngelList claims almost 75,000 startups worldwide of which approximately 14,000 (over 18%) are located in Silicon Valley. At present however, only 597 startups (less than 1%) are located in Mexico.
We believe this statistic will soon change.
According to LAVCA’s assessment, Mexico’s private equity and venture capital industry increased its rating two years in a row due to structural reforms in catalyzing entrepreneurship: “the time and number of procedures required to start a business were reduced below regional averages, and university and government incubator and accelerator programs continue to expand.” Also, Mexico’s proximity to the US and sizable internal market make it an attractive investment location. Lastly, Mexico’s economic outlook is positive and its stock market returns have outperformed other Latin American indices.
As a global mentor at Endeavor, I’m privileged to meet some of the highest-potential startups emerging from Mexico. As one example, Gabe, Leo and I recently met Reserbus, a bus travel aggregator which enables travelers to compare prices, check schedules, and easily make online reservations. Reserbus is addressing an important opportunity which is proven in markets such as India (Redbus).
Reserbus helps bus travelers easily make online reservations
Another example is Hormiga, an innovative platform for connecting with base of pyramid (BoP) consumers. Started by former filmmaker Ariel Zylbersztejn, Hormiga reaches over 3 million people every year and has strong partnerships with government agencies and consumer brands.
Hormiga is an innovative platform which markets to BoP consumers
Behind Reserbus and Hormiga, we see an approaching wave of consumer and business startups addressing significant opportunities in consumer Internet, mobile and other sectors.
If you’re an aspiring entrepreneur in Mexico, the time is now. Get ready, go!