Mexico is an incredible opportunity for investors
PMA Fresh Connections in Mexico started yesterday, 11th of May. The educational program is one aspect the event has to offer. One of the speakers that shared his expertise was Jorge Olson, president of Funding Mexico. Jorge explains that both PMA and he share the same passion; helping entrepreneurs in their industry. “Entrepreneurs are great influencers and they can change their community, sometimes even their country. Besides, the event takes place in Mexico, my place of birth, which makes it even better.”
“It’s exciting to speak during an event like this because I’m a strong believer in education and networking. Being able to speak about how to grow your business with private equity is even better, as it is directly related to the success and growth of the attendees”, shares Jorge.
“My education is all about growing business’, continues Jorge. “It’s about the all elusive capital raising, which is very difficult to do in Mexico. You see, Mexico lags behind in funding and private equity. There is very little access to capital for growth, expansion and mergers and acquisitions. My session will take attendees step by step through the process of what they need to do to raise capital. This starts with internal company goals, mindset, and valuation, all the way to the documentation they need to provide potential investors, both institutional and independent investors and partners.”
He mentions that Mexico is currently the fourteenth largest economy and most likely will reach the top ten in the year 2020, according to the World Bank. “In the investment world, Mexico is twenty years behind the USA, states Jorge. There are only sixty investment funds in Mexico and they are very traditional. Mexico is trying to learn from the USA, especially form Silicon Valley, how to invest, incubate and accelerate companies. We should have six hundred funds in Mexico, not sixty. However, entrepreneurs and high net worth Mexicans don’t know how to invest in companies yet, they invest in real estate. This creates a big problem that we’re trying to address: there is no mentoring. Successful businesspeople mentor their kids, they don’t reproduce their success with other businesses like you see serial entrepreneurs do it in the USA.”
Reflecting towards the agricultural sector, he explains that many countries have industrialized and government subsidized agriculture. “The independent operator can’t compete on a world stage with these policies in place. However, there are consumers that are looking for something else. They are looking for local growers, for food to table agricultural products, for organic and for low carbon footprint growers. Agriculture is the single largest contributor to civilization. It changed our society from hunter-gatherers to what we have today through domestication and agriculture. It sprouted towns, cities, technology, modern economy and trade. However not much has changed for 14,000 years. Modern technology allows us to grow local, sustainable agricultural products in abundance that can feed a population street by street in a town or community. That is the future, vertical growing in local neighborhoods where people can walk and pick fruits and vegetables for the day or the week. The technology is there, the demand is there, we just need to buy-in from the industry.”
In his opinion, Mexico is an incredible opportunity for investors. As companies are usually profitable with little or no debt and credit is difficult to obtain. “Investors can find opportunities of all sizes, acquisition potentials, even roll-ups in different sectors. Mexico has entrepreneurs, infrastructure, opportunity, but not the access to cash. Private equity is relatively new in Mexico. Being first to the market in Mexico is where the greatest value lies for investors. This PMA event brings together executives and entrepreneurs, which are often smart people. This is the only way to grow and learn. The attendees of the event will network, learn, and keep on the cutting edge of their industry. Moreover, the networking isn’t just with people from Mexico, but also from other parts of the world. The ability to meet face to face and talk about technology, partnership opportunities, trends and making personal connections is priceless for the attendees.