Argentina

Buenos Aires

"Argentina's capital (and largest city) has long fostered the entrepreneurial spirit thanks to its prominent universities, affordability, and a currently rising number of venture capital investments."

Inc. magazine
Top 5 Latin American Ecosystem in Talent & Experience
Top 5 Latin American Ecosystem in Funding
#2 Latin American Ecosystem in Performance

Highlights

Buenos Aires is known as a lively cultural center, but Argentina’s capital is also rapidly turning into an exciting startup hub. Since 2008, accelerators and incubators financed by the Buenos Aires City Government and public-private investment schemes have supported more than 30,000 entrepreneurs in the city. Academia Buenos Aires offers the Emprende course, in which entrepreneurs learn lean startup methodology, design thinking, and other business skills, and the Buenos Aires Institute of Technology offers an entrepreneurship course. Incubator program incuBAte finances up to 100 startups per round and offers equity-free funding, mentorships, networking, and coworking spaces to participants. 


Startups also benefit from Buenos Aires’ pool of educated, international talent. The city is home to many distinguished universities and more than 40% of young adults here have completed tertiary education. The city also boasts the highest level of English proficiency in Latin America. The National Trust Fund for Entrepreneurial Capital (FONDCE) is composed of ten funds with a minimum of $30 million allocated to each. FONDCE provides zero interest loans to new businesses. Argentina-based companies can also sell equity and offer convertible notes online via crowdfunding to raise funds. Recent notable fundraising news out of the ecosystem includes e-commerce platform Tiendanube’s $500 million Series E in August 2021, which put the company's pre-money valuation at $2.6 billion.

Ecosystem by the Numbers

TOTAL EARLY STAGE FUNDING
(2019H2-2021)
$222 m
GLOBAL AVG.
$687 m
ECOSYSTEM VALUE
(2019H2-2021)
$7 bn
GLOBAL AVG.
$28.6 bn
MEDIAN SEED ROUND (2019H2-2021)
$410 k
GLOBAL AVG.
$671 k
MEDIAN SERIES A ROUND (2019H2-2021)
$4 m
GLOBAL AVG.
$4.7 m
SOFT. ENGINEER SALARY (2021)
$15 k
GLOBAL AVG.
$46 k
490 m
GLOBAL AVG.
11.3 bn
37
GLOBAL AVG.
101
Amount ($)
Count (#)

Exits

(2017-2021)
EARLY-STAGE FUNDING GROWTH TIER (2018/19 VS. 2020/21)
5
Calculated on a scale of
1 (lowest) to 10 (highest)
TOTAL VC FUNDING (2017-2021)
$1.3 bn
GLOBAL AVG.
$4.5 bn
TIME TO EXIT (2017-2021)
8.3 years
GLOBAL AVG.
9.4 years

Sub-Sector Strengths

Fintech

The Argentine central bank’s Transferencias 3.0 initiative was launched in 2021, with a goal to increase the amount of digital transactions. The Argentine Chamber of Fintech’s Fintech Women initiative identifies and aims to overcome barriers for women in the sub-sector. Fintech industry body Camara Argentina de Fintech includes over 300 companies employing almost 15,000 people. Crypto exchange Lemon Cash raised a $16.3 million Series A in July 2021, and digital banking startup Ualá raised a $350 million Series D in August 2021.

Blockchain

Buenos Aires has begun building a public Blockchain-based digital identity platform to give the city's residents control over their personal data. Digital payments startup Ripio was the first Bitcoin payment processor in Latin America, and now offers a digital wallet, exchange, and credit services. Ripio raised a $50 million Series B in September 2021 to expand operations in Mexico, Colombia, and Uruguay. Cryptocurrency exchange Buenbit raised an $11 million Series A in July 2021.

Reasons to Move Your Startup to Buenos Aires

Convenient Location

Buenos Aires is just one hour ahead of U.S. East Coast time, four hours behind London, and four hours ahead of Silicon Valley, making it a strategic location for teams working remotely or serving a variety of international clients.

International Appeal

Argentina’s capital city is the regional headquarters of over 30 global companies and hosts one of the largest entrepreneurial ecosystems in the region. A cosmopolitan cultural hub, the city attracts both local and international talent. With more than 50 universities offering excellent and affordable education, Buenos Aires is popular with international students, according to the QS Best Student Cities Ranking. The Nestpick Index rated the city the best urban destination for digital nomads in Latin America and among the best 35 globally.

Tech Talent

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.

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