Fourth in Hispanic America | Argentina has recently dropped in the rankings to become the fourth most entrepreneurial country in Hispanic America*. Buenos Aires leads the way, the Buenos Aires innovation ecosystem is ranked first in Argentina and fourth in South America. Among the most valuable, Argentina’s MercadoLibre, the first Latin American technology company to be listed on the NASDAQ, is the 72nd most valuable company in the world: 23 billion USD.
*Behind Mexico, Chile and Colombia, according to StartupBlink data in 2023. Hispanic America includes the Spanish-speaking countries in Latin America and the Caribbean.
Startup overview
The global slowdown in venture capital and the local economic situation have reduced investment in the Argentine ecosystem: 6 rounds of financing were closed in the first half of 2023, compared to 36 in the same period in 2022. Recent political changes will continue to affect entrepreneurship.
The most popular sector for entrepreneurship was the knowledge economy.
Argentina today: economic snapshot
Inflation, which reached 142.7% year-on-year in October 2023, marks the reality of Argentine companies and entrepreneurs.
Aid for startups
- 2022 | The World Bank approved a loan of 200 MUSD* (72 billion ARS) to support the creation of technology-based companies.
- 2023 | The Government expanded the Argentine Credit Programme (CreAr) to mobilise 800 billion ARS (2.218 billion USD) in financing lines for SMEs.
*Millions of US dollars
Private investment
- 2021 | 622.4 MUSD. 85 agreements
- 2022 | 252.7 MUSD. 61 agreements
The adventure of entrepreneurship in Argentina
The opportunities…
- Benchmark technological talent.
- Success stories of startups that drive the ecosystem.
- Easy access to the market.
…And the challenges
- Macroeconomic context: inflation and exchange rates.
- Tax burden.
- Changing regulations.
Three key sectors
Fintech innovation
- The Argentine fintech sector already has more than 330 startups.
- Buenos Aires has announced measures such as a digital identification system based on blockchain or tax payments through cryptocurrencies.
Deeptech depths
- Argentina leads deeptech innovation in Latin America.
- The sector registers 103 startups, with a total value of 1.9 billion USD.
Cultivating agrotech
- Argentina is a major global agricultural producer and the world’s second largest exporter of soybean meal.
- The sector had almost one hundred startups in 2021.
Entrepreneur radar
Of (ex) unicorns
The fintech Ualá is currently the only Argentine unicorn:
- Financial management app linked to a prepaid card
- Valuation | 2.45 billion USD
Other Argentine companies have reached unicorn status before. Their success has led them to major exits:
- MercadoLibre | E-commerce | Online commerce and digital payments ecosystem. Listed since 2017
- Globant | SoftTech | Consulting and technology for digital transformation. Listed since 2014
- Auth0 | Cybersecurity | Digital authorisation and access solutions. Acquired by Otka in 2021
- OLX.com | E-commerce | Classified ads platform. Acquired by Naspers in 2014
- Aleph | AdTech | Advertising and digital media holding company. It filed for an IPO in the United States in 2022, which it eventually withdrew in 2023
- Bitfarms | Crypto | Bitcoin mining. Listed since 2021
- Despegar | Traveltech | Online travel agency. Listed since 2017
Other companies that are aiming high in the ecosystem
- Ripio | Fintech | Platform for buying and selling cryptocurrencies. Valuation | 95 MUSD
- Digital House | Edtech | Online digital skills academy. Valuation | 70 MUSD
- Pomelo | Fintech | B2B fintech infrastructure provider. Valuation | 45 MUSD
- Agrofy| E-commerce | E-commerce platform specialised in agribusiness. Valuation | 30 MUSD
- Osana| Healthtech | API-connected infrastructure for the healthcare industry. Valuation | 28 MUSD
- Clicoh| Logitech | Logistics solutions for online stores. Valuation | 25 MUSD
Entrepreneurial infrastructure
Incubators, accelerators and investors are positioned as strategic partners that drive the Argentine entrepreneurial ecosystem:
Incubators
Accelerators
Inverstors
Support for startups
From new regulations and public spaces to communities and associations, Argentina has an interesting network of support for entrepreneurs:
Legal initiatives
- Entrepreneurial capital support law.
- The Trust Fund for the Development of Entrepreneurial Capital is created alongside the credit programme CreAr.
- It includes measures such as tax deductions, crowdfunding and the new legal form of the Simplified Joint Stock Company.
- Knowledge Economy Law | Promotes the application of advanced technologies in sectors of interest in exchange for tax benefits.
- Digital nomad visa
Spaces
Events
Associations
- Asociación de Emprendedores de Argentina
- Asociación Argentina de Capital Privado, Emprendedor y Semilla
- Asociación de Emprendedores Tecnológicos
Communities
Entrepreneurship + innovation = change
23.3% of people aged between 18 and 64 years of age in Argentina are entrepreneurs. Technology is an increasingly important pillar of Argentine entrepreneurship, and a driver of value creation for the entire economy.
As the fourth most vibrant ecosystem in Latin America (and 47th globally), Argentina has a lot to say in the innovation landscape.
“The local Argentine entrepreneur has problem-solving in their DNA; in turn, successful entrepreneurs return to the ecosystem to teach and help those who are starting out, because they know that the beginning is difficult.” Daniel Gatti, BBVA Spark Coordinator in Argentina.
Sources: StartupBlink, Kantar BrandZ, Ministerio de Economía de Argentina, World Bank, Crunchbase, Gobierno de la ciudad de Buenos Aires, Forbes, Bloomberg Línea, Endeavor, Cámara Argentina Fintech, Soonicorns Club, BBVA Spark, Startup Genome, Medium, ASEA, The LatAm Tech Report 2023, Venture Capital Argentina KPGM, CB Insights
