Ventures stimulate job creation and therefore the country’s economy and well-being of the country. Investing in Mexican companies, with private equity, stimulates growth and development.
Las pequeñas y medianas empresas emplearon al 72% del total de la población económicamente activa durante el 2022, de acuerdo con la Encuesta Nacional de Ocupación y Empleo (ENOE) elaborada por el Instituto Nacional de Estadística y Geografía.
With a trend towards investment in innovation and new technologies, new projects and business models are constantly emerging In recent months, the emergence of more and more companies has increased the necessity to invest in Mexican companies and boost their growth. You can also read: Capital privado en México: 5 razones para invertir en emprendedores.
Advantages of investing in Mexican companies
The development of companies from the early stages not only enhances their growth and development but also implies benefits for their investors. In recent years, the number of startups has increased fivefold, creating a need to invest in this type of project.
Investment in Venture Capital, or private equity, reached $29.4 billion in the second quarter of 2023, according to Ernst &Young, EY. According to the firm, half of these deals were seed and Series A in response to global economic uncertainty.
However, the trend of investing in early stage companies as an alternative to global uncertainty remains strong. What are the benefits of investing in early-stage companies?
These are the benefits that companies receive with Venture Capital:
When a company seeks capital, it has a specific reason: to expand operations, expand markets, invest in infrastructure or talent to increase productivity.
Mexico has experienced steady economic growth, making it an attractive place to invest, particularly in the region. According to LAVCA, the country ranks second in Latin America in terms of investment.
The country has several industries with growth potential, therefore, investing in Mexican companies that belong to these sectors such as manufacturing, automotive, technology and telecommunications offers advantages to both investors and entrepreneurs. These are the benefits of investing in a company with venture capital.
Network of investors
When a company receives a private equity or Venture Capital investment, it also gains access to a solid network of specialists that will allow it to grow and achieve its goals faster.
Knowledge
In some cases, investors not only provide capital to emerging companies but also share their r experience in the market. This investor plays an advisory role to guide the company through each process.
Value of CAPITAL
As complex as it is for a company to raise capital for an early-stage venture, it is even more complex. The lack of assets to support the growth of that company makes it difficult for them to raise capital.
El impulso del capital privado como alternativa de inversión para empresas desde sus primeras etapas permite que modelos como el capital emprendedor impulsen este ecosistema.
Venture Capital, an alternative for companies
Venture Capital in Mexico is an alternative within the private equity or venture capital industry that drives the growth of companies from the early stages. This investment model is a key tool for promoting more companies from their first years of life, which is key for the economy of a developing country.
It is a solution for 7 out of 10 early-stage companies that do not have access to the necessary capital to operate, according to IDB Lab figures. Con los fondos de capital emprendedor Venture Capital funds seek to detonate innovation and boost more emerging companies, creating a positive impact for both investors and companies in a region.
Private equity investment in Mexico is a growing market that has maintained its growth in recent years. According to Statistainvestments in this industry are expected to reach US$3 billion by the end of this year.
How can you invest in a Mexican company?
The country is a growing market and investing in Mexican companies offers investors a degree of diversification; for example, the Mexican entrepreneurial ecosystem is characterized by venturing into more than one market from traditional sectors such as consumption to new industries such as healthtech.
There are several ways to invest in Mexican companies, including stocks, mutual funds, and Venture Capital. For that, it is essential to stimulate the growth of companies from their early stages.
Mexican companies Mexican companies is WORTEV CAPITAL. A venture capital fund that promotes companies and ventures not only with capital but also with a business accelerator that accompanies the growth of the venture.
WORTEV CAPITAL’s investment strategy is to invest in Mexican companies with an innovative vision and high potential to grow in their industry. If you want to invest in more Mexican ventures, click HERE.
