Legal Aspects of a Venture Capital Financing

Abstract

The chapter covers the legal landscape and roadmap of legal aspects for venture capital (VC) investments and financing.

Mexico’s VC industry is composed by 63 Mexico-based fund managers plus another 50 foreign firms that have done at least one transaction on the past four years. In sum, they have committed over $1.64 billion USD to be invested in the venture space, distributed over a diverse pool of VC stages and industries. As many of 46 funds are focused on seed capital, leaving the rest for later stages.

Regarding deal activity, AMEXCAP has record of 782 VC transactions for a total of $834 million USD invested from 2010 to September 2017. The industry saw its best year in its history in 2016 with the largest number of transactions with 182, representing $209 million USD of capital invested. Of these, 55% of all deals were in the seed stage, 40% in series A and B, and 5% were in later stages.

Citation

Horváth, Z. (2019), "Legal Aspects of a Venture Capital Financing", Corrales-Estrada, M. (Ed.) Innovation and Entrepreneurship: A New Mindset for Emerging Markets, Emerald Publishing Limited, Leeds, pp. 189-198. https://doi.org/10.1108/978-1-78973-701-120191012