By Fran García
A couple of weeks ago, I was reading a report published by Glisco and Endeavor, and something surprised me. In the first half of 2024, Colombia surpassed Mexico in VC investment, with $237 million invested in Colombia compared to $225 million in Mexico. This was un expected given that Mexico’s GDP is almost five times that of Colombia. Traditionally, Mexico has held the second spot in terms of VC investment in Latin America, right after Brazil. However, for the first time, Colombia has taken that position, showing how it is becoming a more attractive destination for investors, particularly in the fintech sector. In the first half of 2024 alone, companies like Cobre, Finkargo, Addi, and Yuno raised significant funding rounds, which has been a key factor in Colombia’s rise.
While Colombia has been gaining ground, Mexico has faced some challenges that may explain its recent slowdown. The country went through a presidential election and dealt with some currency fluctuations. These events might have caused both entrepreneurs and investors to take a cautious approach, leading to a temporary slowdown in investment activity.
Despite these challenges, there is hope that Mexico’s position as a top VC market in Latin America could bounce back in the second half of 2024. Given the size of Mexico’s economy, it is natural to expect that it will attract more investment as conditions stabilize. As the political and economic environment becomes clearer, it is likely that both local and international entrepreneurs will return, potentially helping Mexico regain its place as a key player in the region.
What’s interesting is the difference between Colombia and Mexico when it comes to Venture Capital. Colombia has many talented entrepreneurs but not many local VC funds, while Mexico has the opposite situation with more local VC funds but fewer local entrepreneurs. This creates unique dynamics for both countries as they continue develop their own technology ecosystem.
While Colombia’s recent success is worth celebrating, it will be interesting to see how Mexico evolves in the coming months. If the conditions improve, Mexico has the potential to reclaim its position as the second-largest VC market in the region, using its economic size and established investment infrastructure to grow its technology ecosystem.
