A startup is a young company, recently created, dedicated to the development of unique products or services, attractive to a large market segment, causing a great possibility of growth and expansion. Learn more about these companies in Mexico.
You have probably heard about the startups in mexico and in the world. These business models are here to stay and more and more are being created in our country and in Latin America.
Through this content we will take a walk through the world of startups, solving some of the most frequently asked questions regarding startups. startup companies in Mexico, as well as relevant data to better understand the importance they have gained in the national and world economy. Check it out!
What is a startup in Mexico?
When we talk about a startup in mexico we refer to a recently created company that is dedicated to the commercialization of goods or services, often through technological solutions. Being innovative solutions or services, they generate great interest in the audience, giving the brand great growth potential.
What is a startup?
As such, the term “startup” is a word from English that is used to refer to all those recently established businesses, according to . As such, the term began to be used as of 1950 in the area of ​​Silicon Valley, California, an emblematic site where great giants of the technology industry such as Adobe, Intel, Yahoo, Google and many more have started.
What is the goal of a startup?
Depending on the sector in which the startup is dedicated, it is likely that it will have particular goals, however, some of the most common goals of a startup in Mexico and in the world are:
- Effectively solve a problem of a certain sector of the population.
- Achieve the adoption of your solution, helping to reduce technological gaps.
- Gain market presence and generate profits for your investors.
- Obtain financing to expand and achieve the growth of the company.
As the organization grows and interest increases, goals are likely to change and be reassessed with the intention of sticking with those that provide the most value to the company and help chart the long-term path.
What are the characteristics of a startup?
Some most common characteristics of startups are:
- Great capacity for change.
- They take care of the resources to increase their profit margin.
- They rely on financing to grow.
- They have a strong technological and innovation factor.
- They have scalability potential.
- They are disruptive and seek to generate a change in social dynamics.
Give me the opportunity to explain each one in a couple of lines.
1. High shifting capacity
If something distinguishes startups, it is their great capacity to transform themselves. Both the collaborators and the business model are open to changes, tests and even to reinvent themselves, since they recognize themselves as incipient organizations, in search of a better way to manage themselves.
2. They take care of resources to increase their profit margin
Having limited resources to grow, startups are characterized by great financial care, managing to keep costs low so that the benefits obtained from profits can be reinvested and thus grow faster.
3. They rely on financing to grow
Yes, sometimes financial discipline is not enough to grow and expand operations, which is why startups rely on financing to finance their growth. This is where investment funds, seed capital, crowdfunding, angel investors and business accelerators come in.
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4. They have a strong technological and innovation factor
In a startup, technology is not seen as an additional element, but rather as a fundamental part of the company’s DNA, since in addition to being an essential part of the solution it sells, it is also useful for managing the organization.
5. They have scalability potential
It is said that a startup has a great potential for scalability when the solution it offers and its business model are adapted to grow and increase its income, either by opening more branches, expanding its facilities or entering new markets and economies.
6. They are disruptive and seek to generate a change in social dynamics
Something that startups have in common is encouraging change in society by changing the structure and mental processes to carry out an activity. What am I going to? Tinder, with its app, seeks to change the way people meet and interact, Uber wants to improve the way people get around, while it wants to transform the way entrepreneurs sell online.
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What is the difference between an SME and a startup?
Although they may seem similar to many, there are several differences between a SME and a startup. These are the most recognizable.
SME
startup
It is a company that may or may not be recently created. It is a newly created company. It is made up of one or more collaborators, without exceeding 100 members. It may have less than 30 collaborators, but it maintains a constant rate of expansion. You can have a traditional business model or an innovative model. Its business model is innovative, moving away from or breaking conventional schemes. It can provide conventional as well as innovative products or services. It provides a solution leveraged on the technological factor. It maintains an average growth rate, which depends on its leaders and marketing strategies. It maintains an exponential growth rate derived from the interest and support of investors.
In other words, we can say that a startup can be an SME, but not all SMEs are startups, since within the small business segment, there are many businesses that do not necessarily have the technological factor or the gigantic growth characteristic of a startup.
When does a startup cease to be?
Indeed, not all companies that are born as startups remain in this classification. It is possible that a startup ceases to be when it passes these milestones:
- If the company has more than two years of creation.
- It is listed on the Stock Exchange.
- Your income is equal to your expenses.
- The founders or bosses have a separate office from the rest.
- It does not function as an independent entity, but has been merged or acquired by another company.
Google, Facebook and Amazon began as startups however, as time has progressed and they have consolidated in the market, they have left behind their classification to become companies dedicated to technology.
What are the advantages of a startup?
There are several startup advantages compared to conventional companies. Here I list some of the most important.
- They generate investment returns faster than companies with conventional business models.
- They use technology in every part of the operation to achieve resource efficiency.
- They respond quickly and agilely to possible changes and unforeseen events.
- They provide more growth and learning opportunities to their employees than traditional companies.
- They are a source of change and innovation for society.
What is the most important component of a startup?
Although each startup leader may have a different idea in mind, usually the most important component of a startup is technology. It is through this element that the startup differentiates itself from the rest of the industry, offering an innovative solution to a common problem and making it available to an audience with the potential to become a customer.
How many startup companies are there in Mexico?
The number of startups in Mexico amounts to 574 companies, according to data from the . Cornershop heads the list in this ranking, followed by Bitso and Reservamos.
💡Fact: Mexico is the second largest startup market in Latin America, according to the study prepared by PwC. Capital investment in our country has grown four times since 2017.
What are the most important startups?
According to data from , the ten most important and best-quoted startups worldwide are:
- Bytedance (China, $140 billion)
- SpaceX (United States, $100 billion dollars)
- SHEIN (China, $100 billion)
- Stripe (United States, $95 billion)
- Klarna (Switzerland, $45.6 billion USD)
- Canva (Australia, $40 billion)
- Checkout.com (England, $40 billion)
- Instacart (United States, $39 billion)
- Databricks (United States, $38 billion)
- Revolut (England, $33 billion)
💡Fact: North America continues to be the most prolific region in startups, generating 50% worldwide, followed by Asia with 27% and Europe with 17% according to the
What are the most important Mexican startups?
Now when we explore the universe of most important mexican startupsthe seven most valuable according to data from CB Insights are:
- Kavak ($8.7 billion)
- Bitso ($2.2 billion USD)
- Clip ($2 billion)
- Konfio ($1.3 billion)
- Merama ($1.2 billion)
- Nowports ($1.1 billion)
- Clara ($1 billion)
These are some examples of startups in Mexicohowever, there are many more that you may know and that have gained notable recognition as some of the most attractive to work with, such as Jüsto, Cargamos, Homie, Minu, Credijusto, Cacao Paycard and UnDosTres.
💡Fact: Mexico City is the locality with the highest concentration of startups, with 230 those who like to settle in Chilanga lands. From there, Monterrey follows in his footsteps with 60 ventures. Between both cities, 68% of all Aztec startups are concentrated, according to figures from .
What is needed to start a startup?
If all these questions and data encouraged you to start your own project, these are the steps to follow to start your startup. Put them into practice!
- Find the solution to an everyday problem.
- Make sure it is scalable and has growth potential.
- Think of a feasible business model.
- Make a business plan.
- Set long and short term goals.
- Assemble your dream team.
- Look for financial support or investors for your business.
Do not entertain doubts! Here I explain a little more about each point.
1. Look for the solution to an everyday problem
What common problem do you think can be solved through technology? Think of common situations where an efficient and fast solution can be implemented and that is not yet…
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