Capitalization for Mexican SMEs

(Special, March 22, 2011).- Mexico has about 50,000 companies in the SME sector whose access to bank financing has traditionally been limited. To find a solution to this problem the New Growth Fund I, LP, was created with a participation by CAF - Latin American development bank – of US$3 million.

The venture capital fund was set up to identify, transform, stimulate growth and make venture capital investments in small and medium-sized enterprises in Mexico. The fund focuses on firms with sales ranging from US$3 million to US$10 million annually.

CAF president & CEO Enrique García said the institution’s experience with its venture capital investments has had significant results for the beneficiaries and the region. "It is an activity which is having a positive impact on equitable economic growth. Venture capital investments promote the start up of new enterprises, generation of new products and services, and the emergence of new entrepreneurs."

The New Growth fund, as well as financially supporting the growth and innovation of Mexican SMEs, will work to raise the quality of management and introduce good corporate governance practices.