{"id":18288,"date":"2020-06-11T07:00:29","date_gmt":"2020-06-11T14:00:29","guid":{"rendered":"https:\/\/foundersnetwork.com\/?p=18288"},"modified":"2020-08-14T02:13:07","modified_gmt":"2020-08-14T09:13:07","slug":"starting-up-in-mexico-with-deborah-dana","status":"publish","type":"post","link":"https:\/\/foundersnetwork.com\/starting-up-in-mexico-with-deborah-dana\/","title":{"rendered":"Starting Up in Mexico with Deborah Dana"},"content":{"rendered":"

As the second-largest market in Latin America, Mexico is a critical market for startup founders to understand. Canasta Rosa founder Deborah Dana shares her advice for navigating the booming Mexican startup market.<\/span><\/h3>\n

As a founder in Mexico City, Deborah Dana<\/a> has worn many different hats. She runs Canasta Rosa<\/a>, a growing marketplace startup for <\/span>unique, local\u00a0 and handmade products in Latin America. In 2009, she founded Kiwilimon<\/a>, a social recipe platform that became the largest <\/span>digital cooking platform in Mexico with over 20 million monthly visits. And in between, she was managing partner at the venture firm Soldiers Field Angels, and one of the co-founders of the Asociaci\u00f3n de Emprendedores de M\u00e9xico<\/a> (ASEM).<\/span><\/p>\n

Mexico\u2019s startup market is booming — notably in areas like ecommerce, fintech, blockchain, and more. It\u2019s also the largest Spanish-speaking country in the world<\/a>, and the second-largest market in Latin America<\/a> behind Brazil. That makes Mexico a critical market to master if you\u2019re a founder seeking to build, grow or expand a startup in the region as a whole.\u00a0<\/span><\/p>\n\u201cI think the most untapped ecommerce market in the world is Mexico. Especially right now with COVID-19, current data shows that Mexico\u2019s e-commerce market has had 900% revenue growth since confinement.\u201d <\/a><\/span>Share on X<\/a><\/span>\n

\u201cI think the most untapped ecommerce market in the world is Mexico,\u201d Dana says. \u201cEspecially right now with the COVID-19 situation, current data shows that Mexico e-commerce market has had a 900% revenue growth since confinement.\u201d<\/span><\/p>\n

Understand the opportunities and unique challenges<\/h4>\n

Founders must also understand both the opportunities and unique challenges of growing a startup in Mexico. In e-commerce for example, delivery and logistics infrastructure is less developed than it is in the United States. Historically, government postal service has been poor; Dana said: \u201cthe whole logistics chain was not reliable,\u201d and fraud was not uncommon.\u00a0<\/span><\/p>\n

That\u2019s changed over the past couple of years, she adds — but founders who launched e-commerce startups a decade ago largely \u201cjust couldn’t succeed because of the environment,\u201d Dana adds. \u201cAnd I think it’s similar in a couple of other countries in Latin America, but I’ve heard that Mexico was the worst.\u201d<\/span><\/p>\n

Don’t rush into an investment<\/h4>\n

Some Mexico-based investors have pulled back on new investments in the COVID-19 environment. But there is still money to be raised in Mexico, particularly if your startup isn\u2019t particularly negatively impacted by the pandemic.\u00a0<\/span><\/p>\n\u201cTalk with international funds, or with angel investors or family offices, because many of the VC funds in Mexico right now are reviewing their investment strategies to make sure that their portfolio companies stay afloat.\u201d <\/a><\/span>Share on X<\/a><\/span>\n

\u201cThere are a couple of funds that must continue to invest their portfolios, but many are on hold, Dana says. \u201cSo another recommendation would be to talk with international funds, or with angel investors or family businesses, because many of the VC funds in Mexico right now are reviewing their investment strategies to make sure that their portfolio companies stay afloat.\u201d\u00a0<\/span><\/p>\n

And don\u2019t rush into an investment just because the money is green: Founders must closely examine terms and understand if the relationship makes sense.\u00a0<\/span><\/p>\n

\u201cYou really have to understand if there’s a fit, because it’s not, in the future that could cause issues,\u201d Dana adds.\u00a0<\/span><\/p>\n

Dare to innovate<\/h4>\n

The current environment has amplified many existing challenges in a market — not just in Mexico, but everywhere. But in a crisis or a difficult moment, don\u2019t be afraid to innovate and take the opportunity to drive your startup forward.\u00a0<\/span><\/p>\n\u201cA lot of entrepreneurs are kind of waiting to see what happens before they venture out, or maybe they're being more cautious with their startup. But there are so many great stories of startups that boom during a crisis.\u201d <\/a><\/span>Share on X<\/a><\/span>\n

\u201cI think a lot of entrepreneurs are kind of waiting to see what happens before they venture out, or maybe they’re being more cautious with their startup. But there are so many great stories of startups that boom during a crisis,\u201d she said. Cornershop<\/a>, the Latin American grocery delivery startup, is a good example: Instead of pulling back in an uncertain environment, they are expanding their product to select U.S. cities.\u00a0<\/span><\/p>\n

\u201cMany times, the crisis makes you think of new ways of approaching problems,\u201d she adds.\u00a0<\/span><\/p>\n

Be part of a network<\/h4>\n

Finally, don\u2019t go it alone. Being part of a network — one with extensive ties not just in Mexico, but internationally — is also very important to successfully growing a startup Mexico and Latin America at large.\u00a0<\/span><\/p>\n

\u201cFounders Network<\/a> has been a good space, particularly for asking recruiting or talent-seeking questions. For example, we’re looking for more international talent for our tech team,\u201d Dana says. \u201cFor fundraising, I\u2019ve also talked with a couple of founders who are helping to introduce me to funds in the States. This is a great way to tap into that.\u201d<\/span><\/p>\n

Request an invite<\/a> to learn more about managing startups from Deborah Dana and 600+ fellow tech founders through interactive webinars and forum conversations featuring over 9 years of archived knowledge.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

As the second-largest market in Latin America, Mexico is a critical market for startup founders to understand. Canasta Rosa founder Deborah Dana shares her advice for navigating the booming Mexican … <\/p>\n

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