The book, co-authored by Félix Cárdenas, Luisa Alemany, and Job J. Andreoli, provides a detailed analysis of funding sources, the investment process, and growth strategies for startups in the region.

By JOSÉ ÁNGEL DE LA PAZ | EGADE BUSINESS SCHOOL

As part of the incMTY 2025 innovation festival, EGADE Business School in Monterrey hosted the presentation of the book Financing the Future: Capital to Start and Scale Successful Businesses.

The book, co-authored by Félix Cárdenas, professor in the Department of Entrepreneurship and Technological Innovation at EGADE Business School; Luisa Alemany, professor and academic director of the Institute of Entrepreneurship & Private Capital at London Business School; and Job J. Andreoli, professor at Nyenrode Business Universiteit, offers a comprehensive perspective on the opportunities and challenges of financing in Latin America.

The event featured Cárdenas and Alemany, two of the book’s authors, alongside Ernesto Amorós, associate dean of Faculty and Research at EGADE Business School, who emphasized the significance of this publication for the Latin American entrepreneurial ecosystem.

"This book is a key resource for entrepreneurs, investors, and anyone interested in understanding how to access the necessary capital to create and grow innovative companies in the region," said Amorós, who is also listed as a co-creator among a panel of international experts contributing to the publication.

Cárdenas underscored the importance of understanding financing as a fundamental pillar of the entrepreneurship and innovation ecosystem, noting that "behind every great company, there is a financing story that was crucial to its growth."

He also highlighted that the evolution of the world’s most successful business ecosystems has depended on combining five key factors: entrepreneurs, universities, government, corporations, and capital.

KEY INSIGHTS FROM FINANCING THE FUTURE

Financing the Future provides an in-depth review of startup financing, covering instruments such as Venture Capital (VC), angel investors, accelerators, incubators, search funds, and crowdfunding. It also includes case studies and examples of high-growth companies and unicorns, along with expert perspectives on the future of financing in the region.

During the presentation, Cárdenas explained that the book is structured into four sections: funding sources, financing process, entrepreneurial growth, and alternative paths to entrepreneurship. He also detailed the development stages of a startup, from the seed stage through startup/launch, growth/expansion, and maturity.

"The book is a practical tool for understanding which sources of financing are best suited for each stage of a company's development and how to avoid common mistakes in the investment search process," stated Cárdenas.

Alemany, meanwhile, provided an analysis of the top VC investment ecosystems in Latin America, noting that Brazil leads the ranking, followed by Mexico, Argentina, Colombia, and Chile. At the city level, the top investment hubs are São Paulo, Mexico City, Buenos Aires, Bogotá, and Santiago.

"It is crucial to understand that venture capital has funded the world’s largest companies, yet it remains an exclusive resource," explained Alemany. "Only 0.5% of new businesses each year receive venture capital, yet they represent half of the companies that go public."

She also highlighted that VC investment in Latin America has been growing at an annual rate of 13%, increasing from $1 billion in 2014 to $4 billion today, with Brazil and Mexico leading the market.

Alemany emphasized that "venture capital not only finances projects but exponentially drives innovation." She referenced a study that analyzed three decades of companies across 20 industries, revealing that startups backed by venture capital generate three times more patents than those funded by traditional corporate investment. She noted that this underscores the impact of venture capital on developing new technologies and business models.

Cárdenas added that while fintech and software investment in Latin America has gained traction, a significant gap remains compared to global ecosystems such as Israel or the United States.

"The challenge lies in mobilizing more resources toward innovative startups and fostering more investment hubs in cities like Monterrey, which has the potential to be on the venture capital map," he stated.

The book is an adaptation of the award-winning Entrepreneurial Finance: The Art and Science of Growing Ventures, published in 2018 by Cambridge University Press, which has been adopted by more than 100 universities across Europe and translated into Chinese in 2023. This new edition integrates a Latin American perspective, blending theoretical foundations with case studies and practical analysis.

The book is available on Amazon: https://a.co/d/4gFXjIA.