With its top rated universities and cosmopolitan spirit, Buenos Aires is fast becoming a top South American startup hub. And while Argentina has faced financial instability in the past, today’s entrepreneurs are responding to that history with ingenuity and innovation. Their efforts are supported by a suite of startup-friendly laws and initiatives. The Entrepreneur’s Law, passed in 2017, laid the foundation for growth. The law provided tax incentives and interest-free loans to entrepreneurs, funded startup support organizations, and created the Fiduciary Fund for the Development of Venture Capital (FONDCE) to finance funds investing in promising startups. Forming a company in Buenos Aires can now generally be done in just a day. The Law of Promotion of Software created tax cuts to spur the tech industry. As a result, the number of IT companies based in Argentina more than doubled between 2003 and 2013. Reforms passed in 2019 cut the tax rate to 15% for 10 years for the “knowledge-based economy,” including engineering and R&D. It’s not just the government supporting the ecosystem. Organizations such as Startup Buenos Aires help local entrepreneurs connect, learn, and grow their businesses. Academia Buenos Aires offers a 2-month training course that teaches lean startup methodology, design thinking, and other essential startup skills. IncuBAte offers equity-free funding, mentorship, and coworking space to up to 100 startups per round. Combine these initiatives with the city’s strategic location and the entrepreneurial spirit, and it’s no surprise that Buenos Aires’ profile as a startup hub is rising fast.
Ecosystem by the numbers
Similar to FinTech, Blockchain technology offers a way for Argentine companies and consumers to protect themselves from financial instability and corruption. The Argentine government uses Blockchain technology to record daily official bulletins. This interest has led Buenos Aires to become one of the most important Blockchain hubs in Latin America. The city hosts sub-sector events such as the Latin American Bitcoin and Blockchain Conference, while local Blockchain companies such as Flixxo, RSK, Bitfarms, and Decentraland have attracted significant interest and funding. Crypto exchange Buenbit raised an $11 million Series A round in July 2021.
Reasons to move your startup to Buenos Aires
Argentina offers free, quality tertiary education, and the University of Buenos Aires, with its 300,000 students, is the top ranked university in South America. Universities in the country are even free to foreign students from the Mercosur area (Argentina, Brazil, Paraguay, Uruguay, and Venezuela). The population has the highest level of English proficiency in Latin America. Because of its large workforce of highly educated, internationally oriented developers and engineers, Argentina has become a major global outsourcing hub.
Buenos Aires is just 1 hour ahead of U.S. East Coast time, 4 hours behind London, and 4 hours ahead of Silicon Valley, making it a strategic location for teams working remotely or serving a variety of international clients.
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