Joint Ventures in Mexico: Opportunities and Relevant Trends in 2025
Joint Ventures have been, for several years, the ideal vehicle to carry out business in Mexico and the world. The reason for this is because this agent is a facilitator to achieve a strategic association between two or more parties seeking to develop a common project or company with lucrative purposes, sharing the risks and benefits derived from its execution. This type of contract is often used to facilitate entry into new markets, especially when one of the parties is foreign.
In such cases, the foreign entity may contribute innovative technology or business practices, while the domestic party contributes business relationships, local expertise and regulatory compliance. This synergy enhances the competitive advantages of both parties and enables sustainable growth.
The parties involved may contribute capital, labor, assets, know-how, experience or other valuable resources to the joint venture.
Key elements for establishing a Joint Venture in Mexico
To structure an effective and legally sound Joint Venture in Mexico, it is essential to consider the following aspects:
- Written contract detailing the terms of the collaboration.
- Precise identification of the parties involved (individuals or legal entities).
- Purpose and scope of the project, including activities, duration and territory of operation.
- Defined contributions: capital, technology, infrastructure, etc.
- Clear governance, with rules for joint management and decision-making.
- Dispute resolution mechanisms to avoid protracted conflicts.
- Specialized legal advice, key to structuring a solid and tailor-made alliance.
A well-designed Joint Venture can be the difference between a successful collaboration or a source of conflict.
Current outlook and opportunities in 2025
According to a recent study cited by the international news agency Reuters, capital raised for startups in Latin America grew by 26% in 2024 versus the previous year, outpacing the growth seen in Europe (7%), and contrasting with the 34% drop in Southeast Asia.
By 2025, financing for Latin American startups is expected to continue to rise, driven by a young population, accelerated digitalization and an increasingly sophisticated investment environment, according to the report by Mexican entrepreneurship network – Endeavor and the private equity firm Glisco Partners. However, challenges remain, such as the low participation of late-stage local funds and global volatility.
Three key trends identified so far in 2025
- Increasing use of venture debt and mixed rounds combining equity and financing.
- Expansion of secondary markets, with an estimated 60% growth, facilitating liquidity for early – stage investors.
- Growing acquisition of employee stock ownership plans, although less than 20% of startups currently implement them.
In Mexico, the financial technology sector continues to lead the investment volume, while real estate technology startups and software companies register the highest growth rates. Mexico, along with Argentina, was one of the main destinations for venture capital in Latin America in 2024, highlighting deals with startups such as Clip and Justo.
Joint Ventures as an expansion strategy
Companies are no longer looking for a supplier, but for a strategic partner. Joint Ventures allow aligning objectives, sharing resources and facilitating expansion in regulated sectors or in complex local environments, where market knowledge is essential.
However, as in any strategic relationship, its success depends on trust, transparency and a shared division. Poor governance or misaligned goals can jeopardize the objective.
A recent example in the beauty sector in Mexico is the alliance between Ulta Beauty and Axo, which announced a Joint Venture to launch and operate the Ulta brand in the country during 2025. This strategic collaboration aims to offer Mexican consumers a wide range of high-quality beauty products, strengthening their position in their respective sectors.
How can we help you?
Our Lawyers have extensive experience advising domestic and international companies in structuring Joint Ventures in Mexico, ensuring regulatory compliance, tax efficiency and balanced operational control.
For more information about our legal services and how we can support your company in the formation of successful Joint Ventures, please contact our Team:
Fernando Hernández Gómez | Senior Partner
Compliance & Due Diligence
+52 (33) 38171731 Ext 225 | fhernandez@vahg.mx
| Elvia Ríos Sldaña | Partner
Compliance & Due Diligence +52 (33) 38171731 Ext 228 | erios@vahg.mx |
Ana Karen Inzunza Sánchez | Partner
Compliance & Due Diligence +52 (33) 38171731 Ext 235 | ainzunza@vahg.mx |
Luis Andrés Estrada Intriago | Senior Associate
Compliance & Due Diligence
+52 (33) 38171731 Ext 224 | lestrada@vahg.mx
**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document only refers to laws applicable in Mexico.