Taxes and Initiatives:

• A reduction in the state rate for newly created businesses.

• The state government offers tax exemptions for up to two years on the acquisition of machinery and equipment for startups.

• Startups may also be eligible for a 50% reduction in the state payroll tax for up to two years.

• Startup Grind Chihuahua is a global community designed to provide support and resources such as access to mentoring, networking opportunities, training, workshops, and investor linkages to entrepreneurs in Chihuahua.

• Chihuahua is part of Mexico’s Special Economic Zones program, which provides tax breaks and other incentives for businesses operating in certain designated areas.

Investment landscape:

Public sector incentives

• Chihuahua Global is the Economic Development Corporation (EDC), incorporated by the private sector to promote Chihuahua, Mexico, as a privileged destination for high-value investment projects. It works directly with high-level enterprises to unlock investment opportunities and facilitate expansion bringing strategic allies, and government partners to offer seamless support services and grow operations.

• The National Entrepreneurship Institute (INADEM) supports entrepreneurs to develop their capacity to innovate, be competitive, and access global markets. INADEM launched a program to focus on the establishment of new seed funds, and an increasing number of venture capitalists followed by a focusing on start-up financing. INADEM launched 26 venture capital funds (15 in 2013 and 11 in 2014). In 2015 and 2016, INADEM’s strategy was to focus on better-targeting investments (both sectoral and regional) and created 14 funds (7 in 2015 and 7 in 2016).

• Since its inception, INADEM has supported 2.7 million entrepreneurs with advice, training, and access to credit.

Private Investors:

As one of the largest states in Mexico with a developing startup ecosystem Chihuahua startups are raising capital from international investors (e.g Google, Alchemist Ventures, Plug & Play). The ecosystem has also attracted some notable Mexican VC funds including:

• Angel Ventures Mexico is one of the most active and influential Mexican VC firms in Latin America. The Firm invests in early-stage to early-growth companies by becoming a leading Series Seed and Series A investor in startups that drive innovative business models tailored for the Latin American market.

• IGNIA Partners invest in global companies that target the emerging middle class in Latin America. IGNIA is the fund of choice for expansion in Latam, serving as a bridge to support regional startups in going international as well as opening doors for global startups looking to enter Latin America. Their current portfolio companies operate in 180+ countries.

• ALLVP is the first institutional fund seed and early venture capital of its kind in Mexico, formed to invest in entrepreneurs with strong components and scalable models of innovation. Across three funds, the firm has invested in more than 30 highly innovative and successful startups throughout Latin America

• Investo is a seed capital firm that invests both financial and intellectual capital in technology startups. The firm offers founders 24/7 access to advice and helps scale businesses, as well as provides key talent that may be needed. Investor provides guidance, talent, and capital so game-changing companies can scale.