MEXICO CITY (June 2, 2004) – The development of Mexico’s venture capital industry is the subject of a seminar that is taking place today in Mexico City, Mexico.  The one-day event, sponsored by the U.S. Trade and Development Agency (USTDA), is being held at Nacional Financiera (NAFIN), a Mexican development bank dedicated to the modernization of the industrial sector and emergence of the country’s financial markets.  The seminar supports the goals of the Partnership for Prosperity to facilitate Mexico’s development by enhancing its competitiveness. 

“A healthy venture capital market in Mexico will serve as a catalyst for development,” said USTDA Director Thelma J. Askey in welcoming remarks at today’s seminar.  “By assisting Mexico’s entrepreneurs, the availability of venture capital will translate into increased opportunities, higher growth rates, new jobs, and an increase in the quality of life across Mexico.”

Other speakers at the seminar include Mr. Mario Laborín, NAFIN Director General, and Ambassador Jeffrey Davidow, President of Institute of the Americas.  Participants include key U.S. and Mexican government officials, as well as private sector representatives involved in the emergence of the venture capital market in Mexico to support that nation’s economic growth. 

The focus of the seminar is on the findings of a study that USTDA funded for NAFIN on the development of the venture capital industry in Mexico.  Millennia Consulting, LLC of Chicago, Illinois conducted the study, which identifies several barriers that inhibit the growth of investment in Mexico.  The study also proposes an action plan to create an environment conducive to the formation of venture capital in Mexico and to facilitate increased capital flow into small and medium-sized enterprises.  Today’s seminar is designed to foster discussion on next steps in the development of the venture capital sector.

The study and today’s seminar are consistent with the objectives of the Partnership for Prosperity, which was established by U.S. President George W. Bush and Mexican President Vicente Fox in 2001.  The Partnership, a public-private alliance, builds on the strength of the economic relationship between the United States and Mexico by supporting Mexico’s efforts to develop new strategies to foster growth in less developed areas of the country.

The USTDA-funded study on venture capital builds on the agency’s diverse program of support for infrastructure development and capacity building projects in Mexico.  In the financial sector, USTDA has dedicated resources to strengthening competition policy, fiscal policy reform, financing for energy efficient technologies, and promoting the institutional capacity for venture capital throughout the country. 

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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