The office of capital funding was established through the institute for entrepreneurial development and serves a fundamental role in Tecnológico de Monterrey’s commitment to promoting entrepreneurism. The office has helped over 1,000 entrepreneurs by providing them with access to a variety of funding options, may offered through the government. The goal of the programs the funds are granted through is to develop and foster the growth of businesses in various stages of implementation and to contribute to economic growth and job creation—goals which are also part of Tecnológico de Monterrey’s 2015 mission.
The capital funds office was established to supplement the services provided to entrepreneurs by Tecnológico de Monterrey’s business incubator network and is aimed at using economic aid to support entrepreneurs in consolidating their companies and becoming more competitive.
The office of capital funding fulfills its purpose of promoting the development and growth of society by helping entrepreneurs, alumni and the community to expand their businesses through providing access to government funds and private capital.
The office is a valuable resource for entrepreneurs developing a business plan, or those already executing their plan, and who are part of Tecnológico de Monterrey’s business incubators, business accelerators or technology parks.
The main goals of the office of capital funding are:
To aid students, alumni and the community in obtaining funds to grow their businesses;
To establish a culture of business financing that uses public and private funds to increase competitiveness;
To contribute to the economic development in its region of influence by creating companies and jobs.
The office of capital funding supports entrepreneurs through several programs designed to help them to expand their business operations.
Small and medium-sized business fund:
The small and medium-sized business fund is available to small businesses and entrepreneurs with the goal of promoting economic development in Mexico by granting temporary financial aid to programs and projects related to the creation, development, consolidation, viability, productivity, competitiveness and sustainability of micro, small and medium-sized businesses.
Seed capital fund:
The seed capital fund operates using resources from the small and medium-sized business fund and is designed to aid entrepreneurs in establishing their businesses and making them more competitive. The seed capital fund is for businesses using traditional, intermediate and high technology to develop their products and that would like to take their business to the next level and participate in subsequent rounds of financing with investors.
The investor’s club is made up of prominent businesspeople across Mexico on Tecnológico de Monterrey campuses who are willing to invest capital in promising projects. Entrepreneurs who would like to present their project to investors must be part of one of Tecnológico de Monterrey’s business incubators or technology parks. Entrepreneurs seeking access to this type of funding must also go through Tecnológico de Monterrey’s application process in order to present their project to the club.
Capital funding model
The Tecnológico de Monterrey’s funding model is aimed at consolidating the various financing programs available for small and medium-sized businesses and allows for increased funding through each stage of a business, starting with the fund for research and development. In this stage, entrepreneurs develop a prototype and carry out initial research to develop their technology. If necessary, they then have access to the three federal aid programs for small and medium-sized businesses (the fund for small and medium-sized businesses and seed capital fund). The purpose of these funds is to provide economic assistance to businesses in the initial stages of operation and consolidation. In the highest tier of funding, entrepreneurs have access to the risk capital fund—first on a national level through the investment clubs, and subsequently to international funds.
Entrepreneurs who have developed a business plan and are participating in one of Tecnológico de Monterrey’s business programs (the business incubator, business accelerator, or technology parks) and have the desire to expand and make their businesses more competitive.
The programs are available to entrepreneurs seeking support in developing their business in the form of consulting services and working capital, among other types of aid, to develop and consolidate their business ideas before introducing them to the current market. Eligible candidates for the program include:
• entrepreneurs participating in the business incubator;
• businesspeople participating in the business accelerator;
• entrepreneurs participating in the technology parks; and,
• businesspeople in the community recommended by directors of one of the abovementioned business programs who would like to make their business more competitive on an international level.