Fabian Aguilar
Principal
Angel Ventures
/
Startup Contributor

Funding Sources (part 1)

By Fabian Aguilar | Fri, 11/12/2021 - 10:41

In Mexico, the sources of financing are vast and diverse: some have a higher cost due to the origin of the resources and their use; others are more difficult to get because of the number of requirements that must be met or the limits they may impose on spending the money:

Where can I get Money for my company?

1.

1

2.

2

3.

3

4.

4

The important thing is not to "pick one of them and go out and apply.” To take better advantage of the capital offer available in the country, you must first understand what your business needs and where you want to take it, then, using the table above, think about which intermediaries can solve the previous point without exceeding their capabilities (i.e., it has to fit perfectly) and finally, analyze how those intermediaries will influence the day to day of your company and if you are prepared to accept the responsibilities tied to their offer.

As for the requirements from each of these intermediaries, they vary from provider to provider and it is not possible to group them into a simple list. However, in all of them there is a common denominator: they need to know how your company has performed in the past (which implies having your company’s finances in order), understand the vision behind why you need the money (that is, that you can explain how this money will make the company more successful) and finally the impact that this capital injection will have on your company (and that probably means that you will have to project your company’s cash flows and justify that they will have a positive impact in the long term).

You may feel a little overwhelmed by what we mentioned in the previous paragraph, but don’t panic, because some of these companies will be happy to help you build these requirements so that you don’t lose sight of your goal: to be a successful entrepreneur.

Photo by:   Fabián Aguilar