businessman Undercover: fear of technology startups Mexico to avoid the spotlight

MEXICO CITY (Reuters) - In the Mexican startup scene develops, publicity is the last thing many entrepreneurs want.

Unlike many of his fellow People’s Republic of thirsty them in Silicon Valley, startup founders Mexico often declining media interviews, public announcements avoid and suppress the details of financial success.

One big reason: they do not want to attract criminals.

“You get yourself in a position where you could be a ransom,” said businessman Ulises Vazquez of drug-fueled violence and kidnappings that have hurt the community.

“You want to have a low profile in order to continue your freedom,” he added. Vazquez twice dwell milestone main startup: when he sold his shares at ERGOS advertising agency in 2010, and when the company acquires, Matomy (MTMY.TA), went public in 2014.

Although understandable, low-profile approach to holding back the technology industry Mexico, investors and experts say, making it difficult to attract talent and money, especially from abroad.

Mexican technology sector last year attracted only $ 175 million in venture capital, according to the Association for Private Investment in Latin America. Which was dwarfed by Brazil, a powerhouse in the region, which received $ 1.3 billion, but also trailed Colombia, which attracted $ 334 million in venture capital while the economy is worth about a quarter of Mexico.

Reuters spoke with two dozen investors and startup founders who recognize that security problems are widespread in the technology community and has even prompted some overseas businessmen.

Describing concerns, most refused to speak to the media.

Without publicity, employers struggle to recruit the best, bringing money and inspire the next generation, says Daniel Green, a partner at Silicon Valley law firm Gunderson Dettmer who advise startups throughout Latin America.

“It certainly stunts growth,” he said.

“RISK LIFE”
To be sure, violence is rampant elsewhere in Latin America, from drug-torn Colombia to Brazil crime-ridden.

But the problem particularly acute in Mexico because of the escalation of violence from more than a decade ago when the government sent armed forces into the streets to crack down on the cartels. Around the same time, the drug gangs has branched out into extortion.

A series of high-profile abductions and killings, including the death of an executive at Televisa broadcaster killed in a bicycle during a firefight in 2017, shook the elite.

Which has generated business for executive protection company, providing bulletproof vehicles, GPS trackers, armed guards and real-time monitoring.

For starters, fears may be more perception than reality: there are no known cases of technology entrepreneurs attacked after sharing the success of their company.

And some are still to announce their offers.

Bismarck Lepe, chief executive of software company Wizeline, believes his colleagues are over-careful, despite the horrors of Mexico has suffered.

“Communicating about your success to help people, to help the company, assisting investors,” said Lepe, who divides his time between Silicon Valley and Mexico.

“As long as you are not involved in drug trafficking, nothing will happen to you.”

Mexican businessman Domingo Guerra, who founded the cybersecurity startup Appthority in California, said he does not usually worry about safety when he returned home. But he felt uncomfortable after announcing a round of funding.(source)