Originally posted on VentureBeat:
In early August, Dave McClure’s venture capital firm, 500 Startups, acquired Mexican.vc, a small VC that, well, invested in Mexican tech startup companies. The acquired VC, which co-founder David Weekly told me started as an email with the subject line something like “500 Sombreros” in late 2010, had progressed by mid-2012 to being the leading investor in a small but growing community of tech-oriented venture capitalists in Mexico. While David has stepped back to work on a new project, Oha.na, co-founders Santiago Zavala and Cesar Salazar continue to work with portfolio companies in Mexico and spot new ones as part of 500 Startups.
It would be easy to dismiss this as just another one-off acquisition by 500 Startups on a quest to live up to its name. McClure, et al, have taken stakes in a variety of companies all over the world. And it was McClure, after all, who started Geeks on a Plane, an effort to encourage Silicon Valley types to think a bit more globally. He has cast his net widely looking for talent.
But the acquisition of Mexican.vc was different. It marked the first time 500Startups had actually acquired another VC firm. This is a fairly rare occurrence in the broader VC community, but a Silicon Valley VC buying a VC in another country was all but unheard of. McClure could have easily taken a stake in any of Mexican.vc’s portfolio companies — he didn’t need to buy it outright.