In Mexico, startups see opportunities for growth and expansion, there are currently eight Mexican startups that have the unicorn distinction, that is, they are valued at more than 1,000 million dollars.
The opportunities that companies envision drive the sector, although the soonicorns, companies that are on the verge of obtaining a unicorn valuation, have found their growth stopped due to the low appetite for local investors.
These types of companies have an innovative and scalable business model. In the country, it is estimated that there are about 30 startups that meet the characteristics of soonnicorns, according to OpenFinance.
“In Mexico we need to create an industry in investment funds at an early stage, in seed series, pre-seed and even pre-series A and strengthen the ecosystem and not have a dependency on funds from the United States, which is where they are. the main funders of the soonunicorns and unicorns”, commented Mario Hernández, CEO of Finvero.
For his part, Denis Yris, director and founder of the investment firm Wotev, believes that the lack of financing in the region is due to the lack of maturity of the Mexican system.
“The Mexican entrepreneurial system is very different from that of the United States, including that of South America; it is barely maturing, there are not so many venture capital funds, there are less than 40 funds in the country, unlike the US, where there are more than 3,500 venture capital funds, so there are no funds, no accelerators or incubators,” he said Yris.
In the absence of local investment capital, the platforms continue to grow and receive funds, during 2021 investment in fintech platforms amounted to 1.6 billion dollars in the Latin American and Caribbean region, according to a report prepared by Finnovista .
The same report details that at the end of 2021, around 2,482 fintech companies were identified in Latin America, more than double the number recorded in 2018 when the registered companies were 1,166.
According to Hernández, Mexico is conducive to the emergence of technology companies with high growth potential because they attack the needs of the population, such as the lack of financial inclusion.
“There is a lot of talent, there are problems that attack these companies, such as the lack of financial inclusion in a large young population,” said Hernández.
Latin American Fintech.
The 2,482 Latin American fintech companies represent 22.6% of the technologies that exist worldwide.
Brazil and Mexico continue to represent the two largest fintech markets in the region.
During the first quarter of 2022, 40 fintech startups obtained the unicorn valuation.
For the firm Latam Fintech Hub, 30 companies have the potential to be unicorns, eight belong to the fintech ecosystem.
Currently, Mexico has seven unicorn startups: Kavak, Bitso, Clara, Clip, Konfío, Incode and Merama.