Mexico
Mexico City
"Mexico City attracts global entrepreneurs and investors with its strategic location and vibrant cultural community. Endeavor supports the ecosystem by providing mentorship, access to international networks and capital, strengthening entrepreneurial opportunities."
Highlights
Mexico City is the political, cultural and economic heart of Mexico, as well as the heart of the country’s startup scene. The first Mexican unicorn, Kavak, was founded here, as were five of the additional seven unicorns that have emerged in Mexico since. Clip, an electronic payment platform, was named the most valuable Fintech in Mexico in 2023.
Many international and local investment firms have their headquarters in Mexico City, increasing the availability of capital. VC firms based in the city include Avalancha Ventures, Wollef, and Investo. Several other institutions based in Mexico City also fund tech innovation, including INADEM (The National Institute of the Entrepreneur) and NAFIN, one of Mexico's leading development banks. The largest entrepreneurship organizations in Mexico, including 500 Startups Latam and Startup Weekend Mexico, have offices in the city.
With its pool of young, educated talent, the city is experiencing a nearshoring boom of U.S. and Canadian companies looking to hire in the Mexican capital. The nearshoring demand spurred more than 350 industrial projects in Mexico in 2023, with 767,000 square meters of dedicated industrial space built in Mexico City alone. Mexico City is also a hub for digital nomads, offering fast wifi, plenty of coworking spaces, and a large community of remote workers. Mexico has consistently ranked as the #1 destination for American expats with a notable ease of settling in and affordable living.
Noteworthy funding includes natural gas transportation company ESENTIA Energy Systems’ $300 million round in June 2023, and gig workers marketplace Zubale’s $25 million Series A round in November 2023.
Ecosystem by the Numbers
Sub-Sector Strengths
Fintech
There are approximately 300 Fintech startups in Mexico City, and the Bank of Mexico has plans to introduce a national digital currency in 2024. Finnovista helps corporations develop innovation programs that include the Fintech ecosystem and hosts the annual FINNOSUMMIT event. Stori has raised $449.6 million over nine rounds, most recently in May 2023. Kapital has raised $371.1 million over nine rounds, most recently in December 2023.
Supply Chain & Logistics
As of February 2023 there were 68 Supply Chain and Logistics startups in Mexico City. Total Mexican exports rose 5.8% in 2023 to $52.9 billion, the second-highest reading on record, and in July 2023, Mexico eclipsed China as the U.S.’s biggest trade partner. The Logistics World Expo & Summit took place in April 2023 and Manufacturing Supply Chain Expo 2023 in June. Supply chain company Meru raised $6 million in a June 2023 pre-seed round.
Agtech & New Food
Mexico’s agriculture sector is large, diversified, and heavily integrated with the U.S., providing ample opportunity for innovation. The Mexico Agtech Canadian Technology Accelerator provides knowledge and connections to help companies enter the Mexican agriculture industry. Food Technology Summit & Expo 2023 took place in September. GreenTech Americas 2023 was held in March. Agtech company The Next 150 raised $2 million in a March 2023 seed round.
Reasons to Move Your Startup to Mexico City
Strategic Location
Mexico City's location makes it an ideal hub for international companies expanding in the Americas. It offers businesses proximity to important ports and highways, a well-developed transportation infrastructure, and easy access to key American cities including Miami, Houston, Dallas, and Chicago. Mexico’s time zones align with the U.S., facilitating real-time collaboration.
Advantageous Trade Deals
Mexico has 13 Free Trade Agreements with 50 countries, including with the EU, Japan, Israel, 10 countries in Latin America, and the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership. It is also a member of the Pacific Alliance. The UK-Mexico Trade Continuity Agreement supports streamlined trade between Mexico and the UK. The U.S.-Mexico-Canada Agreement grants U.S. and Canadian investors favor when setting up operations or acquiring companies in Mexico.
Tech Talent
Mexico City is one of the biggest cities in the world, with a young and growing population of approximately 22 million. Over 350 outsourcing companies operate in Mexico, many in the capital city. Mexico was ranked #58 among the Top Digital Nations worldwide in the Global Innovation Index 2023 and third among Latin American and Caribbean countries.
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