Start-ups in Mexico...2020/02/03 · Paine, founder of West Realty Advisors, 2019) • Mexico City...

INNOVATIVE ENTREPRENEURSHIP IN LATIN AMERICA:

Intellectual property and start-up opportunities

Start-ups in Mexico

Ambassador Leonora Rueda

V Jirchářích 151/10, 110 00 Praga 1, República Checa , Tel.: (420) 283 061 530, [email protected], http://embamex.sre.gob.mx/republicacheca

mailto:[email protected]

http://embamex.sre.gob.mx/republicacheca

26/02/2020

INDICATOR MEXICO CZECHIA

Surface sq. km 1,964,380 78,870

Population (2018) 124,738,000 10,650,000

GDP (PPP, USD 2017 est.) (CIA WORLD FACTS)

$2.463 trillion $375.9 billion

GDP per capital (PPP, USD Int. 2018 est.)(THE WORLD BANK)

$20,616 $37,546

Foreign Direct Investment (USD, 2018)(THE WORLD BANK)

$36.871 billion $8.494 billion

FDI in Czechia - Mexico $28.8 million $ 7 million

Global Exports (USD, 2018) (THE WORLD BANK)

$450.572 billion $202.197 billion

Bilateral Exports (USD, 2017)

(USD, 2018)

(USD, Jan-Nov 2019)

(Ministry of Economy of Mexico)

$267,213,000

$304,972,000

$304,498,000

$1,370,537

$1,470,303

$1,313,085

Bilateral Trade (USD, 2017)

(USD,2018)

(USD, Jan-Nov 2019) (Ministry of Economy of Mexico)

$1,637,750,000

$1,775,275,000

$1,617,583,000

Main Trade Partners (2018)

(BANXICO/INEGI)

(Ministry of Industry and Trade)

US (62.75%) Germany (28.8%)

China (9.94%) China (7.4%)

Canada (2.72%) Poland (6.8%)

World Bank “Doing Business” Index 2019 54th 35th

Global Competitiveness WEF 2018-2019 46th 29th

Tourist

Flows

Mexicans in Czech Rep. (2015) 33,439

Czechs in Mexico (2017) 14,757

V Jirchářích 151/10, 110 00 Praga 1, República Checa , Tel.: (420) 283 061 530, [email protected], http://embamex.sre.gob.mx/republicacheca 1

MEXICO: FACTS AND FIGURES

https://www.cia.gov/library/publications/resources/the-world-factbook/

https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD?locations=MX

https://data.worldbank.org/indicator/NE.EXP.GNFS.CD?locations=MX&view=chart

http://www.economia-snci.gob.mx/sic_php/pages/estadisticas/

http://www.economia-snci.gob.mx/sic_php/pages/estadisticas/



INTERNATIONAL TRADE AGREEMENTS

Mexico has a network of 13 FTAs with 46 countries:

1. NAFTA → T-MEC2. EU – MEXICO Trade Agreement3. Comprehensive and Progressive

Agreement for Trans-Pacific Partnership (CPTPP)

4. Pacific Alliance Agreement5. Mexico - EFTA Free Trade

Agreement

Multilateral and Regional Organisms Membership:

1. World Trade Organization (WTO)2. Organization for Economic

Cooperation and Development (OECD)

3. G204. The Asia-Pacific Economic

Cooperation (APEC)




Entrepreneur Capital Program (ECP)Programa Capital EmprendedorSecretaría de Economía

Looks for financial access through capital to the companies and projects of recent creation with a high potential growth that, given their risk level and uncertainty and its innovation nature, do not have access to a commercial banking product. It also offers accompaniment to the enterprise, boosting its probability of success.

At this moment, the capital has been placed to investment funds and actually they are in the investment phase in business with an impact in the environment, that at the same time can create quality jobs and have a positive impact in the services productive chain.

Strategic support: Technologycal Innovation Fund

Fondo de Innovacion Tecnologica (FIT).

Additional to the ECP, the Ministry of Economy, together with CONACYT, manages the Technological Innovation Fund, a public trust created with the objective to support the innovation and development of MIPyMEs technologically based, as well as tax payers related with business activities that develop or adapted innovation and technological development activities.

START-UPS IN MEXICO

44V Jirchářích 151/10, 110 00 Praga 1, República Checa , Tel.: (420) 283 061 530, [email protected], http://embamex.sre.gob.mx/republicacheca 3



2019 Policy THE NATIONAL MICRO-BUSINESS FINANCING PROGRAM “PRONAFIM“(MINISTRY OF ECONOMY)(Programa Nacional de Financiamiento al Microempresario)

PRONAFIM OBJECTIVES:1. A regional distribution of resources that fosters more equitable development and the use of strategic market

insertion opportunities with the explicit objective of promoting much more inclusive economic growth. It meansallocation of resources based on rigorous quantitative and qualitative technical analysis, to the poorest regions.

2. Absence of intermediation of state and municipal public entities and of other kind, and more direct and constantcontact with the beneficiaries through “precision shots”, avoiding issuing a large number of calls without precisedirection. A relatively small number of calls in order to optimize public resources and focus them strategically.

3. Of the 4.2 million economic units that exist in Mexico:

• 98.8% are SMEs

• They generate 78% of employment in the country

• Contribute 42% of GDP


SUPPORT FOR MSMEsSUPPORT FOR MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)



SUPPORT TO STARTUPS IN MEXICO THROUGHOUT THE TIME

2000-2010• Support to SMEs from

the Ministry of Economy. • In 2004 included the

micro enterprises.

2013-2018National Institute for the Entrepreneur

(INADEM)• Business development policy• Funded 108,000 projects, 500,000

businesses and 181 high-impactprojects, total of 4.4 million Micro,SMEs and entrepreneurs, generatedaround 4 million new jobs.

• More venture capital fundsturned to invest in Mexicanstartups: Softbank, ALLVP, AngelVentures, Dila Capital, MountainNazca.

• In 2018, Mexican startups raised atotal of 175 million dollars, and inthe first four months of 2019,various funds have investedabout 139 million dollars (LAVCA).

2019 - onward• No more INADEM • New national programs for innovation but it

remains to be seen the operational rules.• This situation opened a space for national and

foreign private capital funds to now be thegreat drivers of entrepreneurs.

• Regional programs and initiatives to supporttech-based companies, innovation anddisruption.

• Universities • Platforms• Research and joint ventures• National Association of Entrepreneurs (ASEM)• The entrepreneurial ecosystem will make a

transition to have better mechanisms foralignment with the market, leaving asidegovernment incentives that in some casessupported entrepreneurial initiatives.





(source: INADEM, 2017) STARTUPS BY INDUSTRY IN MEXICO AND CZECH REPUBLIC

Mexico Czech Republic

• Fintech start-ups are having success. In 2018 the Congress passed a law regulating financial technology companiesthat paved the way for entrepreneurs to engage in digital banking, lending and investment services. This law wasconsidered a great victory specifically for the cryptocurrency and crowdfunding sectors.

• Mexico has a strong manufacture sector and a growing biotechnology area.




THE 3 MAIN REGIONAL ECOSYSTEMS IN MEXICO

• Mexico specifically benefits from several centers of engineering talent. Besides Mexico City, where many tech startups areformed, Monterrey and Guadalajara are sources of innovation.

• Although the economies of Latin America are less competitive than those of Asia when it comes to the size of theirtalent pools, some investors believe the skills available in Mexico score highly when it comes to quality (JamesPaine, founder of West Realty Advisors, 2019)

• Mexico City is the birthplace of most startups with an international focus. (e.g. Aventones, an app that helps peopleavoid the big traffic in the city, was acquired by the European BlablaCar after becoming the most successful rideshare appin Latin America).

Cities Global Ranking of Startup Ecosystem:




STRATEGIC SECTORS BY REGION



“If there is something that Mexican entrepreneurs know how to do very well, it is to convert the conditions of uncertainty when there are changing scenarios into opportunities to do business and shake the market. Now they are

professionalized, they form teams with multidisciplinary skills, they no longer undertake alone and more and more women are leading a business. Even some entrepreneurs open more than one startup”

(Vincent Speranza, General Director Endeavor Mexico, July 2019)

VENTURE CAPITALS IN MEXICO

Over the past five years, 120 activeventure capital managers have investedover US$1.8bn into Mexican start-ups andcompanies, with investment morethan doubling between 2017 and 2018.

Fundraising rounds have grown, andexits increased (the most high-profilebeing the recent acquisition of a majorityownership in Cornershop by Uber)




This has attracted the attention of an increasing number of international

funds:

Between 2016 and 2018, many foreign investors made their inaugural investments in Mexico:

V Jirchářích 151/10, 110 00 Praga 1, República Checa , Tel.: (420) 283 061 530, [email protected]://embamex.sre.gob.mx/republicacheca 10

• Sequoia Capital invested in Rever (Software)• Monashees invested in Grin (Transportation)• Andreessen Horowitz invested in Cuenca (Fintech)• QED Investments invested in Konfio (Fintech)

Source: Jaguar Ventures, December 2019



STARTUPS POR LA MOVILIDAD(3rd edition), February 12 – 13, 2020, Mexico City, www.womanlab.mx

Woman Lab and Latam Mobility give voice to the new generations with their proposals and actions to improve mobility in Latin America. In this edition that will take place on February 12 and 13 at the WTC in Mexico City, 7 Ibeoamerica Startups will be presented with their proposals, where they will be evaluated by different experts in mobility, innovation and business.

FORO MIND CONNECT(2nd editon), April 7 – 8, 2020, Guadalajara, Jalisco, www.mindmexico.com

Creative collaboration space to promote networks between actors in the Jalisco´s innovation ecosystem. It is intended to identify innovative projects and products with potential for the market and thus increase the competitiveness of Jalisco globally.

OPEN MIND(5th edition), October 06 – 08, 2020, Guadalajara, Jalisco, www.mindmexico.comOpen Mind is an inspiration space where the innovation, technology and futuristic trends ideas converge to generate creative connections. Connects with the innovation, the industrial and academic communities through dynamic conferences, panels and workshops in one place, the innovation district of Guadalajara.


EXHIBITIONS AND FAIRS IN MEXICO RELATED TO STARTUPS

http://www.womanlab.mx/

http://www.mindmexico.com/

http://www.mindmexico.com/




INVITATION

OBJECTIVES: Bring together an expert community in science and innovation, in order to achieve an exchange of ideas that can contribute to face the current global challenges.

POSSIBLE PARTICIPANTS: Nobel Prizes, Ministers of Science and Technology, business directors, managing directors of innovation and research centers, think tanks and entrepreneurs.

1. Science and Technology in Society Forum (STS Forum) Latin America and theCaribbean High-Level Conference - March 17, 2020, Ministry of Foreign Affairs, Mexico Cityhttps://www.stsforum.org/events/

2. First meeting of Innovation of the Community of Latin American and Caribbean States (CELAC) - March 18, 2020 Ministry of Foreign Affairs, Mexico Cityhttp://celacinternational.org/



https://www.stsforum.org/events/

http://celacinternational.org/

Start-ups in Mexico...2020/02/03 · Paine, founder of West Realty Advisors, 2019) • Mexico City...

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