This article was originally published by Bismarck Lepe, founder of Ooyala and Wizeline, on LinkedIn.
Dear Entrepreneurs: Last week, one of the highly lauded Mexican startups closed its doors due to fraud perpetrated by its founders. Diego Serebrisky, the cofounder of Dalus Capital said that investors will need to be more detailed in their due diligence. VCs in Mexico already lose out on some of the top deals because they don’t move quickly enough – so this is not the answer. The onus is on us to realize that the Lifetime Value of our reputations is worth more than our individual startups.
The tech startup ecosystem in Mexico is strong enough to survive this, but if we want it to flourish, we’ll need to place a bigger focus on the reputational currency on which ecosystems trade:
Investors invest in people, first. They look at the business second.
Read the rest of the article on LinkedIn.