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Ask HN: Feedback for seed fund in Mexico - AspireLabs.net
There was a recent discussion regarding bootstrapping in Mexico that illustrated some of the difficulties of starting a startup over here. Partly in response to people in that situation, we are in the process of launching AspireLabs!, a seed fund for early-stage startups in Mexico (we love Y Combinator, and we think we need something similar here but with a focus on ideas for emerging markets and could help lots of struggling founders). The main features would be:
-Funds to pay for (basic) expenses while developing the first version of the product (it’s not much but at least it’s a new source of financing)
-Coaching to develop product/market (using lean startup/customer development methodologies) (to have some guidance during the process and avoid many common mistakes)
-Multiple startups to create an artificial 'mini-SV'-like environment (we think this is critical - being able to work with like-minded people who have drunk the startup kool-aid)
-Develop tech ideas with a focus on ideas for Mexico and emerging countries (BRICs) (billions of potential users through mobile phones or applications that are more useful in developing economies)
-Targeted at students/recent grads/startups doing bootstrapping (usually the hungriest bunch)
-If it all works, reinvest any profits in more startups (and help develop a local ecosystem)
We believe something like this would be a good alternative in Mexico and similar places. There is more information on the website (in Spanish), and would love to get feedback from HN, especially those who are familiar with the difficulties of starting a startup in developing countries. And of course, all credit goes to PG and YC for coming up with the original concept that we believe would work wonders beyond SV. Thanks in advance,
Hugo
- andreshb 16y agoHugo, where do you come up with the capital? Ive seen this model attempted in other parts of Latin America and even in Miami. However, the problem is always that the people wanting to start these great programs, are not the ones with the capital. I believe this will only work if the managing partners are the ones with the capital (like PG) and not only well-intentioned entrepreneurs managing other people's money. I want this to happen in Mexico as well, the talent is fantastic (our highly talented entrepreneurial dev team is in mexico) but we need Angels that have done it before; created and sold a tech startups. Do you have any candidates?
- hugostevens 16y agoAndres, Thank you for your comment. Originally I am using personal funds, mostly because as you mentioned, I am willing to bet on the local talent. We will try to get as many people with the relevant experience as possible, but as you know, that can be limited so we will have to figure some things as we go along (like PG did the first time around, but with lots of references from the Lean Startups/Customer Development methodologies and the experiences we've had with our own businesses). Besides this, do you have any more recommendations? Regards, Hugo
- andreshb 16y agoOk with the component of the managing partners being angels with experience in the whole sale process as a given in the equation, my number 2 recommendation would be to try to: Not necessarily focus on emerging markets exclusively. You can build a global product, for a US+Euro market from Latin America. Example: Zoho is mostly built in India, Ustream is mostly built in Hungary, there is no good reason why there could not be a 37signals built in Guadalajara, or a Salesforce in La Paz, a good number of SaaS apps are not built in SV or the US. Instead of doing an SMS system for Mexico, or a Yelp for Tampico, build a SaaS, that does not depend on Advertising, or multiple rounds of funding to earn revenues. Finally, it helps to have some sort of Business Development in the U.S. in essence, a hybrid model. I think funding those types of business models can provide the best outcome overall, because they can be very profitable without depending on round after round of financing from SV.
- hugostevens 16y agoAndres, Thanks again for your comment. Just to be clear and not mislead anybody, I have not sold a business, but as I mentioned, I believe the collective experience of the people I am trying to involve is the closest you can get to here in Mexico. I agree completely with your second recommendation, the main point being that it needs to be a competitive product no matter where it ends up being used. Thanks again for your comments, they are quite useful. Regards, Hugo
- evanrmurphy 16y agoclickable: http://www.aspirelabs.net/ http://www.aspirelabs.net/
- evanrmurphy 16y agoI lived in Mexico for a time and find this idea both interesting and exciting. Thank you for posting this, I look forward to following the developments of AspireLabs!.
- hugostevens 16y agoThanks for the comments Evan; we are finalizing some details and will let everyone know how it works out.