VC Investment in Mexico Soars with Tech Startups at the Forefront

Venture capital investors are pouring huge sums of money into Mexican startups, with technology enterprises being major winners.

Mexico received US$891 million in venture capital in the first four months of this year, an increase of 175.52% compared to the same period last year.

The number of transactions also increased 58%, according to data released by the Transactional Track Report (TTR).

Among the startups, the country’s second-hand car broker Kavak received the largest investment.

These days, financial technology (fintech) and internet-based service providers are also attracting investment in large scale, the report added.

Earlier in April, Ubits, a startup that provides skill training online, raised US$7.5 million. A week later, Nelo, which offers credit services to the e-commerce industry, raised US$3 million.

Among the startups, Ubits seems to have all the potential to grow up into a unicorn, stated the country’s business daily El Economista, citing analysts from Tracxn, an international platform for venture capital investors.

Among the investors include Chilean fund Mountain Nazca, the United States’ FJ Labs and 55 Startups.

Other startups attracting investment include Bogar, a web portal that leverages artificial intelligence to provide real-time data analytics services to realtors,  and loan platforms Atrato and Afluenta.