Investing today in Venture Capital in Mexico is an opportunity to obtain alpha.

After the market correction of 2022 contracted the multiples of public and private companies, the markets have rebounded. Multiples have expanded unevenly. Markets recognized the potential of AI to create value for shareholders with stocks like NVIDIA, Microsoft, and Meta soaring. On average, public companies with AI as a central technology or strategy command a revenue multiple 2.5 times higher than companies without a clear AI advantage.

The exciting thing about the acceleration of AI is that it has impacted everyone simultaneously. Unlike the Internet – where Latin America lagged behind in broadband infrastructure or smartphone penetration that took years to catch up – the same foundational language and generative AI models are available to entrepreneurs in San Francisco, CDMX, Shanghai, São Paulo, Tel Aviv, and Buenos Aires.

The Mexican entrepreneurial ecosystem is now more sophisticated. This allows VCs to transition from investing in technology-enabled models to more scalable software startups, from founders with business backgrounds to world-class technical teams, and from imitators to local innovation with global potential.

Exposing capital to AI in private markets and particularly in VC in Mexico is a huge opportunity. The adoption of AI in the region, combined with a market with attractive valuations, generates unprecedented alpha potential for investors.
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