Is Mexico a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Mexico has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Mexico gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Mexico

Funding is one of the most critical ingredients in building a successful startup – and Mexico offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Mexico's early-stage funding environment is dynamic, attracting increasing interest as the second-largest startup market in Latin America. Notable VC firms actively investing in early rounds include Magma Partners, Nazca, Angel Ventures, Capital Invent, ALLVP, Alta Ventures Mexico, and IGNIA Partners. Angel networks like Angel Investment Network Mexico and AngelHub also connect founders with potential investors. While government support exists, such as initiatives like Startup México, challenges persist. Access to capital, particularly bridging the gap between seed and Series A funding, remains a hurdle for many startups. Although overall funding in Latin America saw a significant decline from 2021 to 2023, Mexico experienced a notable increase in capital raised in 2024 compared to 2023, largely driven by later-stage deals. However, early-stage rounds, while numerous, have seen average ticket sizes decrease. The complex exit environment and regulatory uncertainty also present challenges for investors.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Mexico has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Mexico has a dynamic startup and innovation culture, particularly in hubs like Mexico City, Monterrey, and Guadalajara. Entrepreneurial activity is significant, with a high rate of adults involved in starting businesses. The ecosystem is supported by a strong presence of coworking spaces and frequent tech events. There are numerous accelerators and incubators, many of which specifically target early-stage startups, offering mentorship, resources, and sometimes seed funding. While standardized programs exist, there's also a focus on providing tailored support to help founders develop their ideas and business models. The ecosystem is growing, attracting both local and international investment.

For many entrepreneurs, the energy and resources available in Mexico can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Mexico, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Mexico is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Mexico has a significant and growing talent pool for startups, supported by a robust educational system. Over 1200 institutions offer computer science degrees, with universities like Tecnológico de Monterrey and UNAM producing skilled graduates. Key tech hubs like Mexico City, Guadalajara, and Monterrey have a high concentration of professionals. Industry-specific skills are strong in areas like software development, data analytics, AI, cybersecurity, and particularly in the thriving fintech sector. Local talent supports entrepreneurial growth through a large workforce, diverse expertise, and increasing numbers of STEM graduates. Collaboration between universities, government, and industry also fosters innovation.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Mexico can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Mexico boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Mexico's startup ecosystem is supported by a growing infrastructure including numerous accelerators and incubators, particularly in hubs like Mexico City, Guadalajara, and Monterrey. These provide mentorship, networking, and sometimes seed funding. Organizations like Startup México offer specialized programs and consultation to help strengthen business models. The government actively supports the ecosystem through various initiatives aimed at fostering entrepreneurial development and innovation. This includes programs like Startup México and efforts at the state level, such as those in Chihuahua and Guanajuato. Proposed legislation also seeks to provide greater certainty and stability for entrepreneurs. Support systems extend to increasing access to capital, with a growing venture capital community and local investment firms. This environment helps startups thrive by providing crucial resources for growth and innovation.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Mexico. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Mexico Be Considered the Best Place to Launch a Startup?

There’s no doubt that Mexico provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Mexico face several challenges. Competition is significant, particularly in growing sectors like fintech and e-commerce. While the cost of living can be lower than in places like Silicon Valley, impacting operational costs and talent attraction remains a factor, especially in major hubs like Mexico City. Regulatory issues present a notable hurdle, with complex administrative bureaucracy, time-consuming processes for permits and licenses, and navigating tax laws requiring careful attention and often legal assistance. Additionally, an outdated regulatory framework in some sectors, like fintech, can lag behind the pace of innovation.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Mexico or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Mexico offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash