Mexico — VC navigator
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Market overview
Review of the market and key statistics
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Taxes & incorporation
Information on how to launch a startup in Mexico
46%
Of total venture capital deployed in the LATAM region – 1H 2025
$2.1bn
Raised by startups in Mexico in 2024
78%
Of startups remain active for at least 5 years after founding
61%
Of total investment in LATAM gained fintech solutions
Introduction
This report is a go-to guide for international startups and investors that are keen on exploring the Mexican market, as it answers several questions frequently asked by entrepreneurs. Additionally, the report includes the list of VC funds and business angels ready to invest into startups in different spheres.
Mexico’s venture ecosystem has witnessed steady growth and consolidation in recent years, positioning itself as one of the leading destinations for venture capital in Latin America.
Mexico finished 2024 with total startup funding of USD 2.1 billion, and wrapped up H1 2025 with USD 1.95 billion. Deal activity can be considered with fewer but larger transactions compared to previous years 106 deals in 2024 to 38 deals in H1 2025, according to Tracxn data. Such significant funding, even amid macroeconomic challenges, underscores the continued investor interest in the Mexican startup ecosystem.
The entrepreneurial scene in Mexico has matured substantially over the past decade. Between 2015 and 2024, Mexican startups raised almost 2,000 rounds, representing about 18% of all Latin American VC deals. Fintech has been the main driver: approximately 61% of VC funding in Mexico in 2024 went into fintech-related startups followed by logistics, e-commerce, healthtech, and AI-driven SaaS — addressing structural gaps in healthcare access and supply chains.
Mexico’s strategic position as the largest Spanish-speaking economy in Latin America, combined with its deep economic interconnection with the United States through USMCA, makes it a hub for startups with cross-border ambitions. Access to the U.S. capital market, talent migration, and trade flows allow Mexican startups to scale faster than peers in smaller ecosystems. According to AMEXCAP, 78% remain active five years after founding, a higher survival rate than many emerging ecosystems. The country now counts 11 unicorns, including Rappo, Kavak, Bitso, Clip, Konfío, Clara, Merama, Tuhabi, Nowports, Stori, Plata, and projections suggest Mexico could reach 30 unicorns by 2030.
In 2024, Mexico reclaimed its position as the second-largest VC market in Latin America, only behind Brazil with 2025 giving all chances to shoot ahead. The two countries remain in close rivalry: Brazil leads in capital volumes, but Mexico is often praised for higher startup survival rates and faster growth in fintech penetration. More broadly, Latin America’s VC market rebounded in 2024 with a 26% regional increase, driven by later-stage and growth rounds that accounted for 65% of all funding.
Considering the Mexican ecosystem’s strong rebound in 2024 and its ability to attract both domestic and international capital, there is a strong indication that 2025 will bring continued growth, with fintech, logistics, healthtech, and AI expected to lead the wave of scale-ups and new unicorns.
Market overview
$59 bn
Total funding
5x
Growth in funding 2015 to 2025
716
Total VC exits
11
Unicorns (see below)
Top-5 trends for startups in the region:
1. Mexico overtakes Brazil in Q2 2025 for the first time in a decade
In Q2 2025, Mexico pulled ahead of Brazil in VC dollars raised — this is the first time since 2012. Notably, the largest raise in that quarter was by fintech Klar, with a USD 170–190 million Series C, valuing it near USD 800 million to 1 billion. Alongside Klar, Plata emerged as another standout. In March 2025, Plata closed a USD 160 million Series A round (while obtaining its banking license in December 2024), achieving a valuation of USD 1.5 billion and becoming Mexico’s newest unicorn.
2. Licensing vehicles and fund structuring clarity
In Mexico, venture capital funds typically operate via trusts (“fideicomisos”) or “asociaciones en participación”, which are tax-transparent vehicles favored in the domestic legal system. Interestingly, VC funds themselves are not explicitly regulated as a separate class of entity in Mexico — fund managers rely on existing corporate, trust, and tax frameworks rather than a dedicated VC regulatory regime.
To add, corporate venture capital is becoming more visible in Mexico. Corporates are creating startup-focused arms or strategic investment vehicles to tap innovation. Co-investment and hybrid rounds (combining equity + debt or revenue-sharing models) are also becoming more common, as investors seek downside protection.
3. Growth of impact, climate-tech, agtech & cleantech as adjacent frontiers.
While fintech still dominates (61% of total 2024 deal volume), investors are increasingly eyeing renewables, climate tech, and agrotech. National climate and energy policies (e.g., the push to raise renewables’ share of electricity — Law of Energy Planning & Transition, 2025; Ley General de Cambio Climático, amended 2021) are creating tailwinds for sustainability-driven startups.
4. Liquidity and exits remain a critical challenge.
A persistent friction in the Latin American ecosystem — and Mexico is no exception — is low exit activity. In 2024, the region recorded only 79 VC-backed exits, the lowest in recent years, pointing to liquidity constraints and reinvestment bottlenecks.
This scarcity of exits forces investors to emphasize path to profitability, efficient burn, and unit economics when backing startups.
5. Mexico leads in total number of VC funds among Spanish-speaking Latin American countries. According to a 2024 early-stage VC fund mapping, Mexico houses the largest number of VC fund vehicles among Spanish-speaking Latin American countries. This proliferation helps funnel deal flow at early stages, though many of these funds remain relatively small in size or ticket.
Editor's opinion on market characteristics
Pros & Cons of launching a startup in India
Over 100 venture funds and angels are gathered in the list – start to explore and send your pitch!
Some of the 11 Unicorns in the Mexican Market
FinTech
Plata
Provider of credit cards with cashback rewards and installment payment options with interest.
Although Plata obtained its banking license only at the end of 2024 (from neobank to full-stack bank on its own charter), the company achieved a valuation of USD 1.5 billion and became Mexico’s newest unicorn.
Retail
Rappi
Online delivery platform that provides food delivery services from different nearby restaurants, medicines, liquor, groceries, and more.
Series F company that raised $2.5 billion over 12 rounds.
Auto Retail
Kavak
Kavak is an online dealer of pre-used cars with certificates and inspections as a valuable add-on service. The company delivers cars to the user's doorstep and offers a return policy. Founded in 2016, Kavak raised $1.5 billion with current valuation over $8.7 billion.
Company's websiteIncorporation
10 steps to incorporate
your business in Mexico
Incorporating a startup in Mexico involves several steps that may vary depending on the chosen jurisdiction and company type. Here is a general overview of the steps involved:
1. Approval from the National Registry of Foreign Investments (if foreign-owned)
Foreign investors must register with the Registro Nacional de Inversiones Extranjeras, RNIE, under the Secretaría de Economía. This filing discloses ownership, activities, and investment size. Certain restricted sectors require prior authorization.
2. Drafting Articles of Incorporation
Founders must prepare the Articles of Incorporation (Escritura Constitutiva), which define the company name, objectives, share capital, shareholder structure, governance, and administration. This document is executed before a Mexican notary public, who ensures compliance with the General Law of Commercial Companies.
3. Reserving the Company Name
A request for company name availability must be submitted to the Secretaría de Economía via SIGER platform. Once approved, the name is reserved and can be used in the incorporation deed.
4. Registration with the Registro Público de Comercio, RPC
After notarization, the Articles of Incorporation are registered with the Public Registry of Commerce (RPC), which provides legal existence to the company and makes it enforceable against third parties.
5. Tax Registration (RFC)
The company must register with the Servicio de Administración Tributaria, SAT, to obtain a Federal Taxpayer Registry number (RFC). This is essential for invoicing, compliance, and tax returns.
6. Registration with the Mexican Social Security Institute (IMSS)
Employers are required to register with the IMSS to cover employees’ social security, pensions, and healthcare contributions. This is a prerequisite before hiring.
7. Chamber of Commerce / Business Association Registration
Although not always mandatory, most companies join the local Chamber of Commerce (Cámara de Comercio, CANACO) or Industry Chamber (CANACINTRA) to obtain a membership certificate, which facilitates commercial operations, public procurement, and networking.
8. Bank Account Opening & Capital Deposit
Open a local bank account to deposit the required initial share capital (if applicable by the corporate type).
9. Ongoing Compliance
Stay compliant with local bookkeeping, tax laws (monthly VAT, ISR payments, annual income tax returns, electronic invoicing CFDI) and labor laws, including employment contracts, payroll taxes, and IMSS contributions. Foreign-owned companies must also update their RNIE filings annually with the Ministry of Economy.
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