Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • February 2022 (Revised November 2022)
  • Case
  • HBS Case Collection

Fondeadora

By: Álvaro Rodríguez Arregui and Mitchell Weiss
  • Format:Print
  • | Language:English
  • | Pages:16
ShareBar

Abstract

Norman Müller and René Serrano, cofounders of Fondeadora, a Mexican “neobank,” had lined up a $12.5 million in Series A funding round in 2020 only to run into a major obstacle: The lead investor was Gradient Ventures, a venture firm launched by Alphabet, Inc., and Mexican banking law would require personal financial disclosures from Alphabet’s biggest owners, including Google’s founders Larry Page and Sergey Brin. That would be a non-starter with them. To stay under a 5% ownership threshold, Mexican banking regulators had established for such disclosures, Müller and Serrano faced two choices: work with Gradient and the lawyers to try to put together an alternative structure or syndicate the round among multiple investors, with no lead for their Series A. Müller and Serrano had deployed new fundraising approaches before. They had tapped an early crowdfunding platform for money, as well as friends and family and other angels. They had used a Mexican adaptation of SAFE notes, a financial instrument created by YC for early-stage fundraising. Could two designers turned fintech entrepreneurs get creative once again?

Keywords

Fundraising; Entrepreneurship; Venture Capital; Financial Institutions; Business Startups; Government Legislation; Governing Rules, Regulations, and Reforms; Financial Strategy; Financial Services Industry; Mexico City; Latin America

Citation

Rodríguez Arregui, Álvaro, and Mitchell Weiss. "Fondeadora." Harvard Business School Case 822-077, February 2022. (Revised November 2022.)
  • Educators
  • Purchase

About The Authors

Alvaro Rodriguez-Arregui

Entrepreneurial Management
→More Publications

Mitchell B. Weiss

Entrepreneurial Management
→More Publications

Related Work

    • February 2022 (Revised November 2022)
    • Faculty Research

    Fondeadora

    By: Álvaro Rodríguez Arregui and Mitchell Weiss
Related Work
  • Fondeadora By: Álvaro Rodríguez Arregui and Mitchell Weiss
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College