Key Insights from Mexico Tech Week 2024

Last week, the Ferter team had the opportunity to immerse themselves in the tech ecosystem at Mexico Tech Week. This event was an amazing space to connect with founders, investors and ecosystem leaders in Mexico. Here are some key insights we took away from this great experience:

Building Successful Startups 💯

Among various panels during the week, this topic was discussed extensively, with the panel “Mastering Fundraising: Building a Strong Foundation for Growth” by Redwood Ventures, BBVA Spark and Carta being a highlight. There was a clear consensus on the common foundation among successful startups: A strong and complementary team dynamic, coupled with a clear vision of where the company is going in the early stages.
The importance of founders with strong backgrounds and relevant experience in their startup's industry was stressed, along with a constant connection with customers to validate and improve the product. One of the challenges that founders often face is the pressure to adjust their approach to the expectations of investors, when in reality, the priority should be to adapt and respond to the needs of their customers, without losing sight of the importance of ensuring an attractive return for investors.
In the words of Felipe Gedeon, co-founder of Cobre: “If it's not a ‘F*CK yes!’ from the client, it's really a no”

Red Flags to Watch in Startups 🚩

A dynamic between founders marked by constant interruptions and contradictions, conflicts over share percentages or a team with no history of previous collaboration, coupled with the lack of a clear product roadmap and a vague vision of the market (TAM, SAM, SOM) are important 🚩🚩🚩. Clarity of vision and focus of the team is essential to ensure that they have the ability to grow and adapt, with focus meaning that the founders have a common goal that they are working towards and focusing their efforts on.

AI and Data - Transformational Tools 🤖

The Panel “Tacos, Beer and Gen AI” with Gabriel García (Hero Guest), José María Sanromán (Kuona AI) and José Luis López (Finerio Connect) explored how artificial intelligence is giving companies the opportunity to scale and solve problems with unprecedented precision. This technology enables personalized solutions for users at the right time, improving their experience and adding real value. Such is the case with kAI, an AI-powered virtual assistant that allows businesses to manage their operations and planning directly from WhatsApp.
The panel stressed the importance of not just selling products, but focusing on the problem because if you are not addressing a real need, the investment in time and resources will be wasted. 🌍💡
“Create a Ferrari in an industry where things are done 'on foot'” commented Andres Ramirez, co-founder of Zebra during the Emprelatam Connect Day event. A clear example of this philosophy is Matilda, a Mexican startup founded in 2022 that was present at the Startups Latam Week Mexico 2024 panel held at Universidad Panamericana. Matilda automates collection management for private schools, thus solving operating capital problems and offering a modern solution to such a traditional sector.

Time to Expand and Internationalize 🛫

The expansion of a startup to new markets is a complex strategy that involves great challenges and requires a solid foundation before making the leap. Therefore, it is essential to have a clear PMF in its original market, validating both the acceptance of the product and the business model, before scaling to another country . Felipe Gedeon, co-founder of Cobre stressed that the right time to expand is key: “Momentum is vital, and strategic decisions such as pricing and timing make a big difference in success.” This involves understanding not only whether the model and product are scalable, but also how many adaptations the product would need to make for the new market, considering cultural, regulatory and consumer factors.

Distinguishing 'Good Burn' vs 'Bad Burn'. 💸

From the panel “Finance for Hypergrowth - Measure What Matters” we learned about the experience of Juan Pablo Donoso (Director of Optiks) regarding the “burn rate” in startups. For Juan Pablo, the key is to avoid “pinched ballons” - i.e. business models unable to cover CAC or sustain growth.
Companies should pay attention to their LTV/CAC. For Juan Pablo, a good LTV/CAC should be at least 3x. To achieve this, it is crucial to segment the market and understand the retention and churn rate of each segment, because as a company grows, maintaining a good LTV/CAC ratio becomes more complex. For the startup to be sustainable (at least in the short term) the payback on customer acquisition investment should be less than 12 months.
He mentioned that burn is justifiable when it represents an investment that drives sustainable growth and accelerates the business with well-structured models to ensure a reasonable payback. “A good burn rate should work as a springboard and not as a sunk cost, it should be a strategic expense that really catapults the company.”

Special Mention to the Founders of Chihuahua 🏅

We would like to make a special mention to Erik Sanchez Derma, founder of Hey Luk!, startup that is part of the Emprelatam program and Eduardo Aguirre, founder of Darwin Now, who participated as a moderator in the Emprelatam and Google panel.

‍Hey Luk! is dedicated to generating Big Data on market conditions in marketplaces like Amazon in LATAM and North America. Through their platform, they provide their clients with unique visibility into key metrics and market values, enabling them to make informed decisions and increase their chances of success when selling on these e-commerce giants. On the other hand, Darwin Now is committed to transforming the operation of local businesses by integrating key applications to help them increase sales and reduce costs, acting as a bridge between SMEs and world-class technology services, ensuring quality and efficiency. It is always inspiring to meet fellow countrymen on the road and see how they are driving projects that make a difference in the ecosystem. We wish them all the success!

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We would also like to highlight the presence of Andres Guzman, from Startup Chihuahua, who was present, contributing to generate valuable connections for the ecosystem. Although there were few founders from Chihuahua that we met in this event so relevant for the tech sector, we hope that more actors from the north of the country are encouraged to attend this type of meetings in the future, to strengthen the ecosystem and continue to promote the development of startups in the region. Finally, we would like to add the invaluable participation of Ivan Montoya, GP of NuMundo Ventures, part of Ferter's portfolio, who hosted the Mexico Early Stage 100 event, where the most outstanding Mexican startups at the pre-Seed, Seed and Series A levels were recognized.
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With these efforts, the Mexican tech ecosystem continues to grow and take shape, and we are convinced that, together, we can continue to drive innovation and entrepreneurship throughout the country. We hope to see more participation and more success for all the players who are making a difference on this path! 🚀

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