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How important are early stage companies to 'Venture Capital' in Mexico?

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In Mexico, many innovative projects with operational, commercial and financial viability have disappeared in the early stages due to lack of financing, since surviving during the first years can be a challenge. The vast majority of those who succumb prematurely are small and medium-sized companies or recently created startups, which despite having growth potential are unable to consolidate their business.

In this scenario, Venture Capital (VC) plays a transcendental role in driving the growth of disruptive businesses; However, in Mexico, accessing these investment funds is not an easy task, especially when it comes to the first business of an entrepreneur.

“Something that investors must consider is that ventures have different financing needs depending on their life stage. The first years are vital both to consolidate the business model and to guarantee its survival. A company that does not get the capital it needs during these years will hardly reach its full potential, especially today where the market still recent the impacts of the COVID-19 pandemic ”, explains........

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