NSAM Staff Report
Venture capital firm Alta Ventures has closed on $70 million fund, which it says will be used to invest in technology start-ups in Mexico. Venture capital, it seems, is flowing into Mexico as this Latin American country’s economy has outpaced Brazil’s in recent past.
According to reports, the $1.15 trillion dollar Mexican economy grew faster than Brazil last year and is on track to double Brazil’s GDP growth in 2012.
Low debt, macro-finance and political stability are some factors fostering growth in the economy.
Although the total amount of PE and venture capital available to Mexican companies is .01 percent of Mexico’s GDP according to EMPEA, the amount of capital actually invested in companies has grown to $459 million in 22 deals in 2011 from $211 in 19 deals in 2010, according to the Latin America Venture Capital Association, LAVCA.
“Mexico’s recent Olympic gold medal for soccer in the London games is a metaphor for how Mexico is now positioned in Latin America”, said Dave McClure, an investor in Alta Ventures Mexico.
The fund raised money from several investors including International Finance Corporation (IFC), Fondo de Fondos (CMIC) and the Multilateral Investment Fund (MIF).
The majority of Alta’s capital, however, came from its offices in Monterrey, Mexico. Additional investors include Dave McClure from 500 Startups, the Guadalajara Angel Investment Network (GAIN) and two US family offices.
“The partners at Alta Ventures have linked all relevant actors of the Mexican VC industry who are now working together to build a country focused on innovation and entrepreneurship,” said Susana Garcia Robles, Principal Investment Officer at MIF in charge of the Early Stage Equity Group.
Alta Ventures is a technology-focused venture fund targeting Mexican companies with disruptive innovations in high growth sectors such as SaaS, mobile, big data, healthcare, clean tech, consumer, non-banking financing and education sectors.
Monterrey, Mexico-based Alta Ventures has so far invested in seven companies and has exited one of its portfolio investments in Rhomobile after it was sold to Motorola.
The other companies it invested money include Diverza, an e-invoicing provider in Mexico, Convert.com, a web conversion optimizer and Tactivos, an online collaboration platform.