The investment of risk capital The Venture Capital in Mexico during 2021 exceeded 4,000 million dollars, an increase of 294% compared to 2020 and more than 2,000% when compared to what was done in 2016, five years ago, according to the platform Transactional Track Record.
investment funds locals and foreigners invested in mexican startups a total of 4,767 million dollars in 2021. This amount is 294.16% higher than the 1,210 million dollars raised in 2020 and explains that in the year that has just ended four Mexican startups were valued at more than 1,000 million dollars, with what who became unicorns.
The investment in startups in mexico was distributed in 167 transactions carried out throughout the year, that is, 60% more than the 104 that occurred in 2020. The two raisings of the Kavak pre-owned car sales company, of more than 1,000 million dollars, and the investment in the $250 million cryptocurrency exchange Bitso were the largest venture capital transactions on record in 2021.
The venture capital investments in Mexico during 2021 showed a strong recovery compared to 2020. During the first year of the coronavirus pandemic, investments were reduced 37% in amount compared to 2019, with 1,210 million dollars, but transactions increased 13%, going from 92 to 104.
SoftBank fuels the boom
Although the funds that carried out the most transactions in Mexico were the Argentine Kaszek Ventures, the Mexican Angel Ventures México AVPAFII, the American FJ Labs, the Mexican ALLVP and the American 500 Startups, the Japanese SoftBank, which ranks sixth on the list, was the one that invested the largest amount in the Mexican market.
SoftBank made eight investment rounds for a total of 1,570.40 million dollars in different mexico startups, such as Bitso, Kavak and Konfío. Based on the total amount of transactions, it is followed by Kaszek Ventures, which invested 822.55 million dollars in 17 rounds; the American QED Investors, with 55 million dollars in eight investments and the Brazilian Monashees, with 544 million, also in eight transactions.
The departures (exits), that is to say the acquisitions of startups or their IPOs, are more scarce, according to. In 2021, only about 10 companies were divested by funds such as the Mexican IGNIA Partners and the Norwegian Adevinta Ventures.
Technology is the favorite sector of funds that invest in venture capital in Mexico for the third consecutive year. With 87 investments during 2021, technology startups surpassed financial, internet and distribution and sales startups among those that attract the most attention from investors.
The outlook for 2022 looks no different. Although four of the six startups that achieved unicorn status in the last two years are fintech companies (Bitso, Clip, Konfio and Clara), the next unicorns could also belong to the technology sector.
In addition to Kueski, who is indeed a fintech Because it is dedicated to personal loans, the Tracxn platform places the Monterrey-based Nowports, a digital cargo agent, among the potential unicorns in Latin America or soonicorn. Only in the first days of 2022, two Mexican startups: Parrot and Draftea received millionaire investments from venture capital funds.