Latin Leap, a venture capital firm established to soft-land purpose-driven tech companies in Latin America, released its first program designed to help Singapore’s tech startups expand into the Mexican market. The firm will capitalize on the incorporation of Singapore into the Pacific Alliance, which is expected to bring numerous possibilities to connect Mexico and Singapore.
The program Leap2LatAm is the first to provide Mexican companies greater access to business opportunities and partnerships with Singaporean technology startups. Latin Leap will work with Enterprise Singapore (ESG), which similarly aims to connect Singaporean companies with potential clients and joint venture partners in Latin America. “Our partnership with Enterprise Singapore, together with our experience in technology entrepreneurship in Latin America, enables us to understand the needs and priorities for an efficient implementation in Latin America of cutting-edge technology solutions from Southeast Asia. We expect positive impacts on local economies through this connection,” said Stefan Krautwald, Managing Director, Latin Leap.
Both parties see numerous opportunities and growth potential within the Latin American region, where there are 657 million inhabitants and the economy is valued at US$10.5 billion. Some of the potential sectors where Singaporean companies could find new opportunities are AI, fintech, sustainability, agritech and trustech.
Mexican businesses could benefit from these alliances since the use of technologies proven in other markets, strengthens regional production chains “to support economic recovery through the generation of new jobs,” as mentioned in the official Latin Leap press release. "In the same way, Latin American countries are consolidated as strategic hubs for the growth of Asian companies.”
The program will be held in three phases spread over 20 weeks. During the “Explore” phase, experts will evaluate the fit between the product and the market. During “Meet,” prospective companies will meet potential clients and partners. Finally, during “Leap,” companies will enter the market, hire and operate. Participating companies will attend networking sessions and introductory meetings with potential partners in the Latin American market.
Mexico represents a highly attractive market for Asian corporations given its macroeconomic stability, low inflation, size and strength of its domestic market, economic growth and proximity to key global markets. Some of the Singaporean companies that can already be found in the Latin American country include Flextronics Manufacturing, Keppel Fels, Banyan Tree, and Singapore Technologies Engineering. The sectors where the greatest positive impact has been generated from these companies are energy, manufacturing, financial technology, infrastructure and hospitality.
This project will also benefit from the past negotiations between Singapore and the Pacific Alliance on the Free Trade Agreement (PASFTA), as previously mentioned by MBN since it seeks collaboration in areas such as energy, food trade, the digital economy, infrastructure and urban solutions. In Mexico, the Comprehensive and Progressive Treaty of Trans-Pacific Partnership (TIPAT) is already in force and greater bilateral cooperation is being sought on issues of the environment, science and technology, culture and industrial property.
“We see wide opportunities for Singaporean companies to collaborate with corporations and partners in the marketplace in sectors such as healthcare, mobility, agrifood and more, given the fit between the solutions required in Latin America and those developed by Singaporean companies,” said Francisco Rios, Director of the Regional Group for Latin America and the Caribbean, ESG, and an MBN Expert Contributor.