Venture Capital - Argentina

Argentina

Highlights

Argentina is projected to have Total Capital Raised in the Venture Capital market market of US$698.40m in 2024.
Later Stage is expected to dominate the market with a projected market volume of US$458.30m in 2024.
In global comparison, the United States will generate the most Capital Raised (US$136.6bn in 2024).
Argentina's Venture Capital market is gaining momentum, attracting more investors due to the country's innovative startups and growing entrepreneurial ecosystem.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Argentina, known for its vibrant culture and rich history, is also making a name for itself in the world of venture capital. With a growing startup ecosystem and increasing investor interest, the venture capital market in Argentina is experiencing significant development.

Customer preferences: Entrepreneurs in Argentina are increasingly turning to venture capital as a source of funding for their startups. This is driven by a number of factors, including the desire for rapid growth and the need for capital to scale their businesses. Additionally, venture capital provides entrepreneurs with access to expertise and networks that can help them navigate the challenges of building a successful startup.

Trends in the market: One of the key trends in the venture capital market in Argentina is the focus on technology startups. Argentina has a thriving tech ecosystem, with startups in sectors such as e-commerce, fintech, and software development gaining traction. Investors are drawn to these sectors due to their potential for high growth and scalability. Another trend in the market is the increasing participation of international investors. Argentina's economic reforms and favorable business environment have attracted foreign investors looking to capitalize on the country's emerging startup scene. This influx of international capital has helped fuel the growth of the venture capital market in Argentina.

Local special circumstances: Argentina's venture capital market is also influenced by unique local circumstances. One such circumstance is the country's strong entrepreneurial culture. Argentina has a long history of innovation and entrepreneurship, with a number of successful startups and tech companies emerging from the country. This culture of entrepreneurship has created a supportive ecosystem for startups and venture capital investment. Another local circumstance is the availability of talent in Argentina. The country is known for its highly skilled workforce, particularly in the fields of technology and engineering. This pool of talent has attracted both local and international investors, who see the potential for building successful companies with access to top-tier talent.

Underlying macroeconomic factors: The development of the venture capital market in Argentina is also influenced by macroeconomic factors. One such factor is the country's economic stability. Argentina has made significant progress in recent years in terms of stabilizing its economy and reducing inflation. This stability has increased investor confidence and made Argentina an attractive destination for venture capital investment. Additionally, government policies and initiatives have played a role in the development of the venture capital market. The Argentine government has implemented a number of measures to support entrepreneurship and attract investment, including tax incentives and funding programs for startups. These policies have created a favorable environment for venture capital investment and contributed to the growth of the market. In conclusion, the venture capital market in Argentina is experiencing significant development, driven by customer preferences for rapid growth and access to expertise. The market is characterized by a focus on technology startups and increasing participation of international investors. Local special circumstances, such as Argentina's entrepreneurial culture and availability of talent, further contribute to the growth of the market. Underlying macroeconomic factors, including economic stability and government policies, also play a role in the development of the venture capital market in Argentina.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.