Client Profile: Netero, Inc.
Meet the Founders
Steven Riskey, Co-Founder, Netero, Inc.
Ricardo Vargas Lugo, Co-Founder, Netero, Inc.
Dallas, Mexico City
Who We Are
Netero is a free international money transfer service that allows its customers the ability to send store credit (as opposed to cash) to their loved ones at any retailer in Netero’s international partner network. Netero allows its US customers to buy store credit in well-known Mexican grocery stores, pharmacies, mobile operators, utilities companies, and other types of business and send that credit to their family and friends living abroad in Mexico – providing a convenient and secure way for people to support their families, and give them control of how the funds they send back home is being spent – and all entirely for FREE.
Our Five Year Plan
In 2014 Netero has launched in Mexico, initially. The focus in this market will allow Netero to become a mainstream alternative to traditional money transfer businesses among its customers. The long-term growth plan of Netero, however, is geographical expansion beyond Mexico into other Latin American and Southeast Asian countries – countries which are plagued by the same expensive, inefficient, and frustrating money transfer services as Mexico.
Best Piece of Advice for Other Startups
Be adaptive and flexible. A seemingly simple business proposition, selling the equivalent of store gift cards, turned out to be far more complicated than initially envisioned. As our attorney knows well, Netero had to be very adaptive to legal regulations in (a) the financial services sector, (b) the consumer products/services sector, and (c) international money transfer business. Netero’s business model evolved on several occasions to successfully implement a business within the legal limitations instituted by U.S. and international regulations.
If you weren’t involved in a startup what would you be doing?
If it wasn’t Netero, it would be residential real estate investment. I have always loved residential real estate and continue to invest and work on homes as a hobby.
The guidance and assistance you received from CMLaunch was…
Our attorney was an extension of the Netero team. He was involved in every step of the business from setting up the legal entity, to identifying the key federal and state laws and regulations applicable to the model, and helping us adjust our model to best adapt to the regulatory scheme, to securing an exemption from a potentially onerous state banking registration requirement, to helping us secure a trademark for our name, to developing terms and conditions and privacy policies for our customers, to developing agreements with our retailer partners, to assisting with the negotiation of our office lease, and to advising on other related contracts, among many other strategic and tactical projects!