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New opportunity for U.S. startups in Mexico

02/22/2016 10:23
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In an opinion column in the magazine Wired, Bill Richardson –former governor of New Mexico and ambassador to the United Nations– states that Mexico represents a major business opportunity for startups that are going through a financial crisis.


During a visit to the state of Jalisco in Mexico, Richardson realized that the countless foreign passengers at the airport of Guadalajara had evolved from the North American Free Trade Agreement which he helped to promote 20 years ago. 

Nowadays, software startups and application developers are protected by the courts in accordance with strict legislation on copyright and patents. However, the local software industry is still in its early stages and needs greater technical experience. Richardson sees these circumstances as an opportunity for U.S. startups to fulfill the needs of a new B2B market and increase their cash flow by substantially decreasing their operational expenses; and this means being able to survive the period between initial investment and revenue generation known as the 'Valley of Death.'

“To help draw more high-tech companies to Jalisco, Governor Jorge Aristoteles Sandoval created a cabinet-level Innovation Department upon taking office. He's also leading a revitalization of Guadalajara's historic downtown by building a 940-acre media-oriented business hub for TV, film, advertising, video games, animation, interactive multimedia and e-learning. Companies such as Kaxan, Inzomnia, ocelote and Metacube have already opened doors even though construction is still underway," reads the document.

In addition to the above, Bill Richardson mentions other advantages of Jalisco's entrepreneurial ecosystem – technology-hungry venture capitalists, business advocacy organizations, hundreds of bilingual high-tech graduates joining the workforce each year, and sound telecommunications infrastructure. But most importantly, a half-day flight away from home and on US Central Time, Jalisco offers an enviable quality of life in a community that is home to nearly 40,000 American and Canadian expats.

By BBVA Innovation Center.