Frequently Asked Questions.

If you do not find the answer to your question in our list of frequently asked questions, feel free to contact and write us at info@investomex.com

What type of entrepreneurs do you back?

We back passionate and visionary entrepreneurs who are motivated beyond money and passionate about their business idea that have found a meaningful problem and are driven by a personal frustration to solve it through innovation and with the aid of technology. If entrepreneurs don't understand the problem firsthand, they cannot have insight into creating a solution. We look for entrepreneurs with relentless drive that allows them to get opportunities, find the right product-market fit rather than be subject to mere luck. We also look for maniacal commitment to work hard and succeed. We look for deep ambition, intelligence, courage and a willingness to take risks again and again.

What type of companies do you invest in?

We invest in tech and innovative startups with a solid business model thesis that are looking for resources to grow and generate traction. We do not invest in traditional or small businesses. We like companies where a customer comes back over and over again. We like companies that provide value and not only cheaper prices.

I don't have a team, but I truly believe in my idea...

We do not back one man bands, and we do not invest in good ideas. We look for co-founder teams that have worked together in the startup for at least six months that share a vision of the problem they solving, where the startup wants to go and how they want it to grow. We are not looking for good ideas, we are looking for business models executed by world-class teams with great value propositions.

What are your criteria to invest?

We believe venture capital is intensely personal therefore we go through a deep personal process. We invest in people and their teams. We look for startups that have already gone out of the building and validated their business model with a solid go-to-market strategy. We need to understand your personality and motivations, and you need to understand how we work.  Legal requirements? We take care of it.

Do you provide something other than money?

We think venture capital is not only about the money, sometimes advice, networks and support to entrepreneurs is the most important thing a venture capitalist can provide in order to help them build great companies and drive real contributions to their costumers and society. Successful startups born when there is a solid relationship and communication between the entrepreneur and the investor for a two-way knowledge transfer. We want to help turn your vision into a reality by bringing to the table the knowledge and network and the been-there-done-that experience which we believe is more important than the capital. The critical human element cannot be underestimated so we must have reciprocal trust with the entrepreneurs because we are on the same boat. We do not win if they do not win.

I want to use the funds to pay myself and some employees a salary ¿do you have a problem with that?

Not at all. Billion-dollar companies need to hire an important number of superb employees. We assume you are the first of them.  As the old saying goes "A-players hire A-players. B-players hire C-players". Nevertheless,  it might freak us out if you only want to pay salaries and you want to keep all the benefits and get rid of all the risks. When we invest we enter a team and as such we expect to share the risks and the benefits fairly.

I don't want to lose control of my company. How much equity do you ask for?

We are not looking for control in the startups we invest in. You and your team are the visionaries, we just recognize the talent and hop in to build great companies. Nevertheless, we look for a seat on the board of directors. Good management is essential in a startup success and that's something we are good at. We normally ask for a 10% to 30% equity in your startup on a case by case basis. 
We manage risk through company building-not valuations, not deal terms. We deal with risk with our expertise, by establishing trust and lines of communication with the entrepreneur. Even though we are minority shareholders in a startup, we can play a vital role in its ultimate success or failure. 

What do you have in common with other private equity firms?

Probably nothing. Venture capital and private equity are totally different things. Good venture capital firms are structured as service providers to the startup for the purpose of helping it build its business. Private equity firms sometimes lack of operational expertise and are looking only for numbers and financial projections. We look for passionate teams and problem solvers. We want to surround your startup with the best team to figure out together what the users, consumers or the enterprise want. We want to give our best shot as a team, as a board and as a company to build a long-lasting and successful company.

Do you sign NDAs (non-disclosure agreements)?

Yes we do, but honestly, we are not looking to steal your idea. We believe the passion of your team is the secret recipe for success. Since we review many applications and we have many interviews a day, we would never be able to execute all those ideas properly. Furthermore, word-of-mouth is really strong in this community, if we stole your ideas we would be out of business really soon.