- The public letter is based in four recognitions driving five personal pledges from investment players;
- In Brazil, another movement created by companies commits to preserve jobs for the next two months
Several venture capital firms including 500 Startups Latam, Redwood Ventures, ALLVP, Angels Ventures Mexico, Dalus Capital, and Ignia, signed the Mexican Ecosystem Pledge, a public document in which they are committed to maintaining support in growth and innovation for the entrepreneurship ecosystem in the country amidst the coronavirus pandemic.
The initiative is also being supported by Mexican Private Capital Association (Amexcap), Endeavor, and Mexico’s Entrepreneurs Association (ASEM).
The pledge states that business and entrepreneurial ecosystems will be key drivers in the economic revival when it comes. They will also be the crucial factors in the creation of a more sustainable and prepared world, capable of enduring similar situations in the future.
The public letter is based in four recognitions:
- Entrepreneurial innovation needs the continued support of investors to maintain its role to generate jobs, productivity, enhance industries and push the frontiers of innovation to provide better goods and services for society.
- A well functioning financial venture capital industry requires all the value chain to operate uninterruptedly, with Limited Partners, Funds of Funds, DFIs, Family Offices, CVCs, VCs and Angel Investors all being essential in their continuity.
- In a post COVID-19 world, the entrepreneurial ecosystems will be an essential part of the economic rebound as well as a critical factor in imagining a more sustainable and prepared future.
- Abusive behaviors occur in our industry not just because some believe it’s no big deal, but also because those who do find it unacceptable don’t do enough to actively discourage it.
These items lead to five personal pledges made by investors:
- I will honor all my signed commitments to VC funds and startups and will deposit in agreed timing and conditions.
- I will not take advantage of the lack of liquidity to force VC firms or startups forcing them unfairly advantageous deals. I will only sign new commitments that are fully actionable and that I can back.
- If I see a venture capitalist behaving differently from this standard, I will disclose this information to my colleagues as appropriate.
- I will stop doing business with VCs who engage in this behavior. LPs should stop investing. Entrepreneurs should stop considering those VCs.
- I recognize that under current conditions, as always, my behavior must set an example of integrity and mutual respect, eliciting trust and esteem from the multiple stakeholders I serve. I will remain accountable to my peers and to society for my actions.
In Brazil, a movement asks: do not dismiss workers!
In Brazil, another initiative is aimed at preserving jobs in the whole economy, not just the flow of capital in the startup sector. A group of 40 companies released a manifesto on Friday 3 in which they pledge to maintain jobs at least until the end of May, amid the COVID-19 pandemic. Among the companies that signed the document, published on the website Não Demita! (Do Not Fire!) there are large retailers, banks, construction, technology and investment firms.
According to the manifesto, already signed by more than 200 firms, “a company’s first social responsibility is to return to society what it receives – starting with the people who dedicate their lives, every day, to the success of its business.” “This crisis will pass. We are going to build this crossing together until the end of May. By maintaining our staff, we will help to avoid or minimize a possible economic and social collapse”, says the letter.