Scenius Mexico Ep. 2
Your bi-weekly newsletter on technology, innovation, and startups in Mexico.
No time to rest for technology and innovation in Mexico.
I was expecting a slow start of the year for the Startup Scene but it seems as if it won’t slow down anytime soon.
In this episode, we will talk about a new player emerging from stealth mode, Parrot Software Serie A, the first Blockchain-focused coworking space of Mexico, and much more.
You were 42 to sign up for the Newsletter on its first week of existence.
I am so grateful for the support and it gave me the conviction that there is a lot of people out there sharing my fascination for the Mexican Startup ecosystem.
You can read this email online
Funding Rounds
Draftea emerges from stealth mode and raises US$13.2 Million
The Daily Fantasy Sports (DFS) platform for Latin America represents Sequoia’s second investment in a company headquartered in Mexico. [link]
Funds will be used to finalize product development and keep hiring much-needed talents.
While being a consequent first funding round, the Startup has not yet released the first version of its product nor has it developed a strong user base.
The investment was mainly made based on the founding team's experience and their ability to conquer a growing market in Latin America.
Two elements stand out from this announcement: every major investor is now allocating capital to Mexico, and funds are deployed in a greater variety of industries other than FinTech.
Sector: Sports-betting, Daily Fantasy Sports
Total Raised: US$13.2 million
Founders: Alán Jaime Misrahi, Alejandra Lascurain, Miguel Gutiérrez-Barquín, Joe Cohen, Andreas Assad
Investors: Kaszek, Sequoia, Bullpen, and Nigel Eccles (founder of sports-betting FanDuel)
Parrot Software raises a US$9.5 million Serie A
Like Toast in the U.S., Parrot manages payments, including online payments and real-time ordering, along with integrations into services that can manage the back-end operations of a restaurant.
Since making a soft launch in January 2021, Parrot is now working with over 500 restaurants with plans for ParrotConnect - their POS - starting at $73 per month.
The new capital gives the company a total of $11.7 million in funding and will be mainly invested in the product to improve customer experience.
Sector: Point-of-Sale, Payments
Total Raised: US$11.7 million
Founders: Roberto Cebrián, David Villarreal
Investors: F Prime Capital, Liquid2 Ventures, Foundation Capital
General News
Early-stage innovators working on solutions to contribute to a green recovery in Mexican communities can apply to Innovation Challenge Mexico
These refer to digital innovations that provide solutions to improve livelihoods and take climate action - social impacts such as empowering marginalized groups to find secure employment or environmental impact such as enabling biodiversity conservation and promoting sustainable consumption.
Winner teams will receive access to the three-month digital launcher program from Innovation Factory to refine their ideas and prototypes to the generation of a viable business plan to launch their digital innovation for sustainability.
The deadline to apply is January 28, 2022. [link]
Blockdemy launches the first Blockchain-focused coworking space in Mexico
Since launching Blockdemy in 2017, Marco Muñoz had this idea stuck in his head. 4 years later, his dream has come true. Starting in February, the space will open its doors to the public. Entrepreneurs & Digital Nomads will find everything they need to work and grow their businesses. The location will have a coworking area, a dedicated room for podcast recording, and another one for digital content creation. [link]
It’s an ambitious and original concept to launch. Nevertheless, the city is home to Bitso, one of Mexico's unicorns focused on blockchain and cryptos, and counts on a strong community of crypto enthusiasts.
Mexican-based exchange Bitso has become the first crypto sponsor for the Mexican National Team
Talking about blockchain, this marks Bitso’s latest professional sports partnership after a wave of deals in the past few months. Just last week, the exchange landed a three-year sponsorship deal with Brazil’s São Paulo Futebol Clube. And in November, it announced a sponsorship deal with Mexico’s Tigres soccer club.
Bitso has more than 3.7 million users in Brazil, Mexico, Argentina, and Colombia, and the crypto unicorn is by now valued at more than $2.2 billion.
Venture capital (VC) News
YC's new deal may affect Latin American startups, VCs, Angels, and the Mexican tech ecosystem.
Nathan Lustig, from Magma Partners, wrote a well-explained article [link] about this recent change. He details how and what kind of founders would be negatively impacted and sharing some insights on how YC works for most Latin American companies.
Over the last couple of years, we have witnessed YC looking for new ways to stay relevant, be more open to the rest of the world, and find a better way to scale itself.
While this new deal might negatively affect some Mexican tech actors, it is also an opportunity for other incubators to find a competitive edge and, maybe, for LatAm-based incubators to grow in popularity.
Jaguar Ventures changes its name to Wollef and start raising its third fund
The name change was motivated by a need to better differentiate itself by using an uncommon word - Wollef meaning Wolf in Luxembourgish - and is also a good opportunity for a rebranding.
At the same time, the firm announced raising a US$100 million third fund to catch the wave of opportunities coming in Mexico for 2022. [link]
Two fun facts:
Luxembourg is famous in Europe for its flexible corporate laws, lender-friendly collateral law, and various other investor-friendly benefits - and thus home to many investment firms.
Wollef spelled backward makes Fellow - nice move.
Wollef Ventures has been operating in Mexico since 2013 and invested in the likes of Kavak, Konfio, Pulsar, and Nubank.