Argentina is seemingly a paradox: How can one of the most economically unstable countries in Latin America produce so many great entrepreneurs and the only three public tech companies of the Internet age? On one hand, outcomes for startups have been way ahead of its neighbors, but, on the other hand, local businesses have suffered from the economic instability.
The recent passing of the Entrepreneurs Law by President Macri in April 2017 aims to empower Argentina to dominate the regional startup scene. The new law not only contributes seed funds to small businesses in Argentina, but it also makes it dramatically easier to start a business. As Macri opens up Argentina’s market to the global economy, we will likely see more and more startup success.
If you are seeking investment for a venture in Argentina, here are some of the major players in the venture capital ecosystem. For a more in depth look at Argentina’s ecosystem, see my post Doing Business in Argentina.(more…)
Some of the pioneering investors and entrepreneurs have started to be successful, paving the way for the next generation of startups. Other founders who tried and failed in the early 2010s have learned their lessons and are starting second rounds of companies. The ecosystem is much more developed, including startup specific attorneys and more experienced venture investors. From the link:
Startups in Latin America are using creative solutions to address not just local but also global problems. For investors outside the region, the prospect of working with these startups can appear attractive, yet complicated. Investing in early-stage startups in Latin America can present challenges; however, despite the challenges, time and time again I’ve found it can be well worth the effort.
When I first came to Santiago, Chile in 2010 as part of the pilot round of Start-Up Chile, there was hardly any talk of startups. Most people didn’t even know what startups were. Within nine months of returning to the U.S., the company I co-founded was acquired. So I decided to go back to Chile to look for more opportunities in this emerging market.
Over the next couple of years, I taught entrepreneurship in Chile, mentored local entrepreneurs and eventually started investing in Latin American companies myself. I’ve now invested in more than 30 early-stage companies in Latin America, and I firmly believe the time to help early-stage startups in Latin America has never been better. Here’s why.