Venture capital companies and angel investors play a critical role in the creation and development of Argentina's startup ecosystem. While the industry is still modest in comparison to other countries in the area, it has been gradually developing in recent years. In 2021, USD 2.1 billion was raised in series A or subsequent rounds, a significant increase from USD 330 million in 2020. The majority of it, USD 1.61 billion, represented series D/E stage or later venture capital. Investments in the region may still continue to grow, so if you're looking to start your venture in Argentina, you'll find information on VC funds and Angel Investors in Argentina in this article.
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Topics Covered:
Venture Capitalist Funds in Argentina
Angel Investors in Argentina
Why Should You Raise Funds in Argentina?
There are a number of reasons why you should raise funds for your company in Argentina:
Expanding startup ecosystem and increasing investments: Argentina has a growing startup environment, with an increasing number of investments, startups, and supportive government law. According to LAVCA, between 2019 and 2021, the number of transactions in Argentina increased from 27 to 60, and the amount invested increased from $294M to $1.29B; demonstrating a 131% YoY increase in terms of the number of deals and 503% increase in terms of dollars deployed.
Strong talent pool: Argentina has a deep talent pool of highly skilled and educated professionals in the field of technology, engineering, and design. Due to Argentina's free and high-quality postsecondary education programs, the populace is among the most educated in Latin America and the country has become well-known as a global software and app development outsourcing powerhouse.
Cost advantages: Argentina's cost of living and doing business is generally lower than in other countries, which can help stretch startup capital further. According to the Argentine Scientific Society, a top-tier developer can cost 1/3rd of a comparable developer in the US and a scientist 25% of their US counterpart; providing a significant competitive advantage for startups in the country
Access to a large market: Argentina has a large domestic market of over 45 million people, which can be a valuable customer base for startups. As of 2022, the South American country had approximately 37.18 million internet users. This year, internet penetration in Argentina amounted to 81% of the population.
Of course, raising funds does not come without any challenges in Argentina. These may include a lack of capital, economic insecurity, weak financial culture, and regulatory obstacles. However, for companies prepared to traverse these obstacles, obtaining capital in Argentina can be rewarding.
Venture Capitalist Funds in Argentina
The venture capitalist funds below are actively looking for investment opportunities in diverse sectors and at different stages. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Type: VC
Stage: Pre Seed, Seed, Series A
Focus: Deep Tech
Draper Cygnus is an early-stage investor in deep technology and decentralization. They back founders who are building the next paradigms and harnessing deep tech and innovation to transform our society towards sustainability. Knowing that entrepreneurial talent is spread globally, Draper Cygnus is devoted to scouting the best entrepreneurs from Latin America and Latinx immigrants in the United States, Europe, and Israel.
Type: VC
Stage: Seed
Focus: Cloud & SaaS, E-commerce Enablers, Fintech, B2B Marketplaces, AI and Data-Driven Businesses
NXTP Ventures is a B2B-focused LatAm Seed Fund. As one of the pioneers of early-stage venture capital in Latin America, they have amassed a portfolio of 130 investments, 32 exits, and 6 unicorns. From concept to execution, they work with high-impact, visionary entrepreneurs as one of the first institutional investors to help them turn their startups into potential industry leaders.
Type: VC
Stage: Seed
Focus: E-Commerce, Digital Media, Digital Publishing, Digital Advertising, Marketing Services, AdTech, eSports, VR/AR, Marketplaces, Software, Offshore Service Providers, Mobile Gaming, Video Entertainment, SaaS, IA, Fintech, InsurTech
Boasting a tremendous success record of 15 exits from 26 investments, Patagonia Ventures makes early-stage investments in fast-growing startups in Latin America. They are active investors with the goal of nurturing the ideas of innovative, high-tech entrepreneurs and accelerating their growth. Aside from financing, they also provide experience, coaching, and networking opportunities to the best and brightest Internet startups to help them succeed.
Type: VC
Stage: Seed, Series A
Focus: New Business, Digital Transformation, New Digital Consumer
Envisioning a new Latin America economy built on technology and information, Alaya Capital invests in the next generation of LATAM digital entrepreneurs who will have a positive global influence. As the startup's investment partner, they will also lend their expertise and growth specialists to assist companies in scaling at the regional level, acquiring and retaining talent, and fundraising for the following round.
Type: VC
Stage: Seed, Series A, Series B, Series C
Focus: Technology
Built by tech entrepreneurs, Kaszek looks forward to collaborating with imaginative and purpose-driven Latin American founders. As a team, they like to get their hands dirty and be involved directly with entrepreneurs to help them establish the next generation of Latin American iconic firms. Aside from capital, they also offer assistance and insights in strategy, growth, technology, product development, operational execution, team-building, networking, and fundraising.
Type: VC
Stage: Seed, Series A, Series B, Series C
Focus: Technology
54 Ventures invests in early and later-stage high-impact technology startups in Latin America. They understand that building a successful business requires more than just capital, so as an investment partner, they will provide you with access to their intellectual, network, and financial resources to help you fulfill your idea. With expertise in building and scaling businesses, they will help startups in developing a successful plan for regional and worldwide development.
Type: VC
Stage: Seed, Series A, Series B, Series C
Focus: Real Estate, Retail Agribusiness, Technological Financial
Underlined by the purpose to support enterprises with values and create meaningful work,
Pegasus supports and invests in long-term sustainable businesses in Latin America. Pegasus promotes innovation and initiative, with a focus on post-deal management and tight project oversight to create value. They exclusively invest in industries they are experienced in, either via their own team's experience or through strategic alliances.
Type: VC
Stage: Seed, Series A
Focus: AgriFoodTech
The Yield Lab Latam is part of The Yield Lab, a global network of Venture Capital funds with operations across North America, Europe, Latin America, and Asia Pacific. They are an AgriFoodTech venture capital firm that invests in early-stage startups addressing the challenges faced by the agri-food sector throughout the whole food and agricultural innovation spectrum. They also provide assistance programs for portfolio firms in key areas such as governance, talent, commercial strategy, growth, and funding. They encourage the long-term development of this essential industry by uniting entrepreneurs, investors, corporate stakeholders, farmers, the public sector, and research groups.
Type: VC
Stage: Seed, Series A
Focus: Technology, Future of Education, Future of Work, Future of Food
Mr Pink VC is obsessed with investing in initiatives and people. Created by entrepreneurs who have been in a founder's shoes, they know how hard it is to raise a seed round in the region, and they are here to help. They want to overturn the logic of the investment market in the region, make it easy to launch a business in South America and offer value to startups. They provide not only capital but also startup expertise and a network of contacts in LATAM, the United States, and Europe to accelerate startup growth.
Angel Investors in Argentina
The Angel investors listed below are part of and represented by an Angel group. As individual Angel investors are hard to come by, these platforms are the best place to secure Angel financing.
Type: Angel Platform
Stage: Seed
Focus: Sector Agnostic
The Angel Investment Network is a UK-based angel investment platform where startups from Latam can meet angel investors. Startups may post their project on the platform for potential investors to see, and they can also use the search function to browse through and proactively approach angels. They have recently launched a chapter in Argentina, and it has since received numerous investor and entrepreneur sign-ups. Now, there are over 1100 registered businesses on the platform ready to meet angel investors who have over USD 100 billion in accessible capital.
Type: Angel Network
Stage: Seed
Focus: Sector Agnostic
Focused on the promotion and consolidation of early-stage entrepreneurs, Emprear finds, trains, and accompanies entrepreneurs to improve their growth potential and connects high-potential startups with investors. As a community of individuals interested in actively participating in startup firms, the network serves as a venue for chosen entrepreneurs to pitch their businesses to club members.
Closing Thoughts on VCs and Angel Investors in Argentina
Though the investment industry in Argentina is still relatively small compared to other countries in the region, it has been growing in recent years. The government has taken steps to promote entrepreneurship and innovation, and a number of promising startups have started emerging in the country. For instance, out of the 42 unicorns in Latin America in 2022, 8 of them hail from Argentina. This include Auth0, Despegar, Globant, MercadoLibre, Mural,OLX, Prisma Medios de Pago, Tiendanube/Nuvemshop and Ualá. There is optimism about the potential for the startup ecosystem in Argentina as it is likely that investments in Argentina will continue to grow.