ALLVP: Pioneering Seed Capital in Mexico Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

During end of 2011, Fernando Lelo de Larrea (MBA 2004) and Federico Antoni (MBA 2004) resigned from their CEO positions in their respective mid-sized companies and initiate fundraising for their first premature stage investment fund: Seed Innovation Trust 1.

Given their lack of track record in venture capital, they decided to produce a micro fund, the smallest, however most institutional, venture capital fund possible consistent with their investment thesis. Founded in 2012, ALLVP raised the first seed capital fund that was institutional in Mexico to invest in innovative service-oriented, new firms. The investment dissertation focused on service industries like financial services healthcare, and consumer internet that were experiencing high growth due to demographic and macro-economic trends, advantageous non-market forces, the growing middle class and the access to new technologies.

This double model proved vital to positioning ALLVP in the Mexican entrepreneurial ecosystem and creating a high-value first portfolio. Twelve portfolio companies and two years later, ALLVP increased a second, $40 million dollar (USD) fund focused on Series A and B rounds in Latin America. Given ALLVP's success, a new proactive public policy from the new government in Mexico was established and helped the seed capital business grow from ALLVP to more than a dozen funds in 2014 as the first and only institutional fund in the year 2012.

PUBLICATION DATE: December 10, 2014 PRODUCT #: E529-PDF-ENG

This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP