Ep. 51: Mexico eclipses Brazil as the top destination for M&A in Latin America
Welcome to Miranda Scenius: Your weekly newsletter on technology, innovation, and startups in Mexico.
While KPMG’s survey wasn’t focused exclusively on the technology sector, it showed that there has been a boom of M&A in Mexico, which has most definitely been felt in the startup scene as well. Further boosted by the venture capital crunch that forced many startups to look for a quick exit, the trend is also certainly driven by Mexico’s attractiveness for investment among international players.
It seems like every week we hear of new technology startups landing in the country, and this week is no exception, we will cover Galileo Financial Technologies’ (a subsidiary of SoFi Technologies) new partnership with Plata in Mexico. This is supported by the exciting news that a few Chilean and Argentinian startups are continuing to strengthen their presence here.
Follow The Money
VIOO raises US$1 million seed funding round
The startup offers a marketplace that connects businesses with on-demand professional visual content creators. VIOO services are available in 70 Mexican cities and it has the capacity to execute projects internationally. Should a professional not be available in a specific area, VIOO guarantees it will find you one. Furthermore, VIOO's robust community of over 1,500 registered photographers brings a wealth of expertise in diverse sectors such as gastronomy, e-commerce, tourism, and corporate affairs.
Sector: Marketplace
Total raised to date: US$1 million
Founders: Nicolás Carayon, Mathis Renard, Carlos Barahona
Investors: Wollef, Kima Ventures, 500 Latam, Colectivo Jaguara
Startups News
Chilean Almacén Gurú says goodbye to Mexico
The venture capital crunch impacted the startup which bridges neighborhood retailers with wholesale vendors, causing them to make tough decisions and lay off their entire 30-member team in Mexico. Although the company was growing at a robust pace in Mexico, it was not translating into profitability. The co-founders emphasized a strategic shift from growth to profitability, with the goal of returning to Mexico in the coming years after ensuring the company's financial stability.
Galileo Technologies powers new Plata Card
Galileo Financial Technologies, a subsidiary of SoFi Technologies, has announced a new partnership with Plata in Mexico to support its transactions and payment processing. Plata Card is the newest credit card in the Mexican market, boasting advanced technology and security. Currently only available in the metropolitan area of the Valley of Mexico, Plata Card plans to expand to other states in the coming months. The company aims to attract 1 million customers by 2024.
VC - M&A News
Mexico eclipses Brazil as the top destination for M&A in Latin America
Mexico is emerging as Latin America's prime destination for mergers and acquisitions (M&A), outpacing Brazil, which had held the top spot for years, according to a KPMG survey. Favored by 79% of investors and companies, Mexico's strategic location and nearshoring possibilities have recently proven attractive. Technology, financial services, and energy were the sectors investors are finding most appealing. The report also noted that foreign organizations have had more successful M&A endeavors in the region than local entities.
Rest of the World
Argentinian Startup tapi is betting on Mexico
The startup is strengthening its foothold in Mexico's fintech landscape, with a mission to transform the local payment experience by developing innovative financial solutions for recurring payments. With over 50 million users opting for digital payments in 2021 and the projected user count expected to reach 78 million by 2025, the country's digital payment adoption continues to surge.
Chilean Hackmetrix to reinforce its presence in Mexico
The cybersecurity startup has successfully raised US$1.3 million in a bridge financing round to bolster its presence in Mexico and continue its expansion in Colombia, where it has doubled in size over the past year. The company also aims to further promote cybersecurity education through initiatives like Hackers Academy.
My name is Natalia Gonzalez Vela 👋. I was born in Guadalajara, Mexico 🇲🇽, but I was raised in Dallas, Texas 🇺🇸; therefore, I consider myself proudly Tex-Mex 😄
I am a venture capitalist (VC) by day and an avid reader/writer, fan of the theater, and spinning enthusiast by night (or whenever I can fit it in haha).
I absolutely love being a VC! I consider it a privilege to invest in the next generation of extraordinary founders and technology companies in Latin America 🚀🌎. I have worked at funds like SoftBank and Upload Ventures in addition to my own angel investing.
Additionally, I am also the Creator and Author of La Neta del VC 🚀 - A blog, written in both Spanish and English, dedicated to democratizing venture knowledge for LatAm founders. I am also on the Board of WeInvest - a non-profit focused on empowering and upskilling women investing in Latin America 🙋🏻♀️.
If you want to know more about me, follow me on LinkedIn and Twitter
If you want to learn more about venture capital, subscribe to La Neta del VC
If you are a female investor looking to join a stellar community, check out WeInvest
If you want THE technical industry manual on venture capital, I recommend the book Venture Deals
If you want to learn more about the history of venture capital, I recommend the book The Power Law
What would you have liked to know before starting your career?
I would have liked to know that NO ONE knows haha.
I spent so long looking for someone in a venture who had allllll the answers, and then I finally realized that no one has all the answers. Of course, experienced VCs are knowledgeable in both the art and science of venture capital, but new things come up every day. That’s the beautiful part about this job - you are constantly learning because of the constant change.
Therefore, instead of being focused on knowing everything, I would tell myself to focus on being a very fast learner and staying constantly curious 💪🧠
What do outsiders often fail to understand about your industry?
I think venture capital seems like an extremely fast-paced game full of glamor and luxury 😎 from the outside haha, and that is not always true haha.
Yes, it can be fast-paced because of the competitive nature of venture deals, but it can also be incredibly slow because funds have a 10-year life cycle to realize returns and you only make a few investments per year.
Sure there can be some glamor and luxury once one has been successful, but in the meantime (for about a decade) you are getting rejected by hundreds of LPs 🙅🏻♀️, conducting hundreds of hours of due diligence work, and sending hundreds of “pass” emails to founders (which believe it or not does take a toll 😞).
What's one thing you can keep talking about for hours?
Venture Capital haha 😄.
If you do not believe me, check out this podcast episode on Accionables. I spent two hours talking about VC in a crash-like course in Spanish with my friend Orlando Osorio 🚀
What’s the weirdest job you’ve ever had to do?
When I lived in China, I was a voice actress for different textbooks and GPS systems in Spanish and English haha. It was pretty cool, but it was very random 😄.
What makes you bullish on the Mexican startup ecosystem?
The resilience and hunger of LatAm founders 💪
The untapped potential due to the massive problems and underlying systemic issues 🌎
LatAm’s learning curve as a global venture ecosystem 🚀
See you for the next edition. Have a question or any feedback? Just hit reply. We'd love to chat!