MX Fund 01, an early-stage equity fund associated with Hackers/Founders (H/F) Mexico, utilizes a community-centric model to source and vet startups. The deck outlines a strategy to capitalize on the growing Mexican ecosystem, which saw $180M in VC investment between 2013-2014 and $527M in annual government support. The fund structure is distinct: they seek to sell 50% of the fund to accredited investors for $400k while H/F retains the other 50%. With a selection process involving peer review and investor validation, the fund targets a portfolio of 20 companies. The deck serves as both a marke…
Key takeaways
- The fund targets the Mexican market, citing 1.2k startups and 3.2k investors on AngelList (Slide 2).
- The LATAM economy is positioned as a $9 Trillion market cap opportunity with a 590 million population (Slide 12).
- Hackers/Founders Mexico claims a massive top-of-funnel with 3k+ technical entrepreneurs and meetups in 22 cities (Slide 13).
- The investment selection process is three-tiered: organizer referral, blind peer review by other founders, and validation by 5 investors (Slide 5).
- The fund is raising $400k by selling 500k shares at $0.80 each to accredited investors (Slide 7, 9).
- Portfolio traction is demonstrated through Nyon.tv, which reports $9k/month revenue and profitability (Slide 4).
- The fund structure involves a 20-company portfolio where H/F retains 50% equity interest (Slide 9).
- Operating budget for the first 6 months allocates 53.4% to salaries and 25.6% to professional services (Slide 6).
Executive Summary: The Community-Led Fund Model
MX Fund 01 represents a transition from a community organization, Hackers/Founders (H/F), into a structured investment vehicle. The deck focuses heavily on the 'unfair advantage' of having a pre-built network of 3,000+ technical entrepreneurs in Mexico. Unlike traditional venture funds that rely on inbound applications, this fund uses a 'co-op' model where founders peer-review each other, theoretically reducing the due diligence burden on the fund managers while increasing the quality of the top-of-funnel.
Slides 1-4: Introduction and Portfolio Proof
Slide 1 introduces the entity as "CO-OP MX - MX FUND 01," an early-stage equity fund. The branding is minimal, focusing on the connection to the Mexico region.
Slide 2 establishes the macro environment for H/F Mexico. It cites $527M in yearly government investment and $180M in VC investment between 2013 and 2014. It also notes 4 recent visible exits and a community size of 1.2k startups and 3.2k investors based on AngelList data. This slide serves to de-risk the geography for international investors.
Slide 3 is a simple transition slide stating "The Opportunity... Co-op MX is already running." This implies that the infrastructure for the fund is not theoretical but operational.
Slide 4 provides a specific portfolio example: Nyon.tv (Biochar). It lists strengths such as "serial entrepreneurs" and the "first successful Mexican kickstarter campaign." More importantly, it shares traction metrics: $9K/month revenue, profitability, and a production pilot for BioChar. This is the only slide in the provided set that offers specific company-level unit economics.
Slides 5-8: Process and Financial Ask
Slide 5 details the "Selection Process." It is a three-step funnel: 1) Referral by organizers, 2) Blind peer-review by other founders, and 3) Validation by 5 investors. The third step includes a specific hurdle: the ability to raise $500k or generate $250k in revenue within 6 months. This suggests the fund is looking for high-velocity startups rather than long-term R&D projects.
Slide 6 breaks down the budget for the first 6 months of the Co-op. The allocation is:
Salaries: 53.4% · Professional Services & others: 25.6% · One time expenses: 13.1% · Monthly expenses: 7.8%
This indicates a lean operation where the majority of the $400k raise is directed toward human capital to manage the community and selection process.
Slide 7 is the direct ask: "500k shares @ $0.80." It asks the investor, "How much are you in for?" and provides contact information for Mak Gutiérrez. This slide is repeated later in the deck, emphasizing the focus on closing the round.
Slide 8 repeats the budget pie chart from slide 6 but adds context regarding the broader market, re-stating the $180M VC investment and $527M government investment figures alongside the $500k round target.
Slides 9-12: Structure and Market Context
Slide 9 explains the "MX FUND 01 Structure." The goal is a portfolio of 20 companies. The ownership is split 50/50: 50% is sold to accredited investors for $400k, and 50% is retained by H/F. This is a non-standard venture structure, functioning more like a joint venture between the community organizers and the LPs.
Slide 10 shows a funnel graphic with numbers: 500,000 founders, 1,500 companies, 80 companies, and 10 companies. This likely represents the narrowing of the Hackers/Founders global or regional funnel down to a final selection, though the slide lacks labels for what each stage represents.
Slide 12 broadens the scope to the "LATAM ECONOMY." It claims a $9 Trillion market cap (citing WolframAlpha) and a population of 690 million. It highlights a specific gap: "In summer 2015 only one startup raised 30M," suggesting that the market is underserved relative to its size and mobile phone penetration (400 million).
Slides 13-17: Community Strength and Exit Environment
Slide 13 focuses on the H/F Mexico community footprint. It claims 22 cities host meetups every month with 3k+ technical entrepreneurs. The call to action here is "Go to meetups to find talent," positioning the fund as the primary gateway to this talent pool.
Slide 14 lists American VCs already investing in Mexico to prove the thesis. It includes Crunch Fund ($1.3M in Kueski in 2011), Robb Kunz, Barret Lyon, Center Electric, and Northgate Capital. Several investment amounts are marked with a question mark, indicating that while the activity is known, the specific terms were not public.
Slide 15 discusses the "CO-OP MX funnel" with internal notes. It mentions that for every 100 companies seen, they expect to accept one. It also references the manager's experience at "GAIN," where 180 startups applied over 18 months, but only two were invested in, with 80% rejected due to lack of MVP or client validation.
Slide 17 concludes with a "Show me the money" slide. It reiterates the $180M VC commitment and $527M government commitment. It adds that American money accounts for around $75M in total investments and notes that there have been 3 liquidity events totaling $300M.
What Works in This Deck
Community Leverage: The deck successfully argues that Hackers/Founders has a unique, organic reach into the Mexican technical community that traditional VCs might lack. · Market Timing: By citing the influx of American VC money and heavy government support, the deck creates a sense of an ecosystem at an inflection point. · Clear Selection Hurdle: The requirement for startups to be able to raise $500k or hit $250k in revenue within 6 months (Slide 5) gives investors a clear idea of the fund's risk profile and target stage. · Transparency on Use of Funds: The budget breakdown (Slide 6) is unusually specific for a fund pitch, showing exactly how the management fee/initial capital will be deployed.
What Is Missing or Unclear
Management Team: While Mak Gutiérrez is listed on the contact slide, there are no bios or track records for the individuals who will actually be making the investment decisions. · Legal Structure: The 50/50 split between H/F and investors is mentioned, but the legal jurisdiction and the specific rights of the "shares" being sold are not detailed. · Portfolio Depth: Only one company (Nyon.tv) is profiled. For a fund targeting 20 companies, more examples of the existing pipeline would strengthen the case. · Exit Strategy for the Fund: The deck mentions liquidity events in the ecosystem but does not explain how the fund itself intends to return capital to the accredited investors.
Founder Takeaways
Institutionalize your community: If you run a large community or event series, this deck provides a template for how to turn that social capital into an investment vehicle. The "funnel" slides are essential for proving that you have a filter, not just a mailing list.
Use macro data to de-risk: When pitching a fund in an emerging market, you must sell the country before you sell the fund. MX Fund 01 does this well by citing government spending and foreign VC activity as proxies for market maturity.
Be explicit with the 'Ask': Slide 7 is a model of clarity. It states the number of shares, the price per share, and the total round size. There is no ambiguity about what the founder wants from the investor.
Define your 'Unfair Advantage': For H/F, the advantage is the 3,000+ technical entrepreneurs. Every fund deck needs a slide like Slide 13 that explains why deals will come to them first and why they will be able to pick the best ones.
Frequently asked questions
- What is the specific 'Ask' in this pitch deck?
- The fund is seeking $400,000 from accredited investors. According to slide 7 and slide 9, this is structured as the sale of 500,000 shares at a price of $0.80 per share. This investment represents a 50% stake in the 'MX Fund 01' structure, with the remaining 50% retained by Hackers/Founders.
- How does the fund source its deal flow?
- The fund leverages the Hackers/Founders Mexico community, which slide 13 describes as having over 3,000 technical entrepreneurs and hosting more than 30 events per month across 22 cities. This organic, founder-led network serves as the primary engine for identifying talent and early-stage startups.
- What is the selection criteria for startups entering the fund?
- Slide 5 outlines a three-step process: first, a referral by organizers; second, a blind peer review by other founders; and third, a 'talk to 5 investors.' The final stage specifically asks if the startup can raise $500k or generate $250k in revenue within six months.
- What market data is provided to justify the investment in Mexico?
- The deck provides several data points: $527M in annual government investment in entrepreneurs, $180M invested by VCs in 2013-2014, and the presence of 10+ foreign VCs. Slide 17 also notes three recent liquidity events totaling $300M, suggesting a developing exit environment.
- How does the fund plan to spend the initial capital?
- Slide 6 provides a budget breakdown for the first six months. The largest portion, 53.4%, is allocated to salaries. Professional services and 'others' account for 25.6%, one-time expenses for 13.1%, and monthly expenses for 7.8%.
