Harnessing Intellectual Capital for Growth: The Week in Finance

Experts shared their insights with MBN on how leveraging intellectual capital can help businesses achieve their goals. Meanwhile, Mexico’s current venture capital (VC) ecosystem plays a crucial role in the economy, creating over 287,000 jobs. The Mexican Stock Exchange experienced a week of declines but is poised for a gradual recovery.

Stay tuned for more updates in finance this week!

Take Advantage of Others and Their Money

Leveraging your business intellectually or financially means utilizing others' expertise or resources to achieve goals with less effort, writes Juan Carlos González, co-founder, xpAzul for MBN. Personal experience highlighted the transformative impact of leveraging intellectual capital and forming advisory boards, masterminds, and updating one’s circle of influence are practical strategies for leveraging collective intellectual capital, and enhancing business and personal growth.

Toward a Promising but Challenging Future for VC in Mexico

Liliana Reyes, CEO, AMEXCAP highlights the evolution and current state of Mexico's venture capital (VC) ecosystem, which has grown significantly over the past two decades despite initial challenges. With over US$9.4 billion invested in startups and 1,400 companies receiving funding, VC has played a crucial role in creating over 287,000 jobs. Investments are concentrated in sectors like fintech, edtech, and healthtech, reflecting ongoing opportunities in tech innovation and social impact initiatives. 

Mexican Stock Exchange Closes Week Down Over 1%

The Mexican Stock Exchange (BMV) faced a slight decline, closing with a weekly loss of 1.42% amid ongoing market nervousness post-elections and concerns over potential judicial reforms. Despite a 0.18% recovery on Monday, the BMV's main index, the IPC, has dropped 5.36% since June 2, closing at 52,222.94 points. Global political uncertainty also impacted markets worldwide, with European indices like France's CAC 40 and Italy's FTSE MIB experiencing significant declines, reflecting broader investor caution.

Mexico Still Lagging in Financial Inclusion

Mexico faces a digital payments gap despite recent strides, with only 23% of transactions digital compared to nearly 50% in Brazil, Argentina, and Chile. Experts stress the need for collaborative efforts between finance and fintech sectors to enhance financial inclusion beyond credit card issuance, citing advancements like Mexico's increase in electronic terminals to 5 million and reduced cash transactions from 90% to 75%.

Mexican Payment Startup Clip Lands US$100 Million Investment

Clip has raised US$100 million in funding led by Morgan Stanley Tactical Value and a West Coast investor, aiming to expand its market presence in Mexico. CEO Adolfo Babatz highlighted Clip's growth potential in capturing a trillion-dollar opportunity in Mexico's cash-heavy economy, amid a cautious VC market in Latin America following a funding slowdown in 2022.