ARGENTINA Trends and Developments Contributed by: Manuel Tanoira, Lucía Rivas O’Connor, Luis Merello Bas and Dolores Nazar, TCA Tanoira Cassagne
reports and oversight committees. Today, there is no clear distinction between impact and non- impact funds. Investment Fund Structure and Liquidity Strategies Despite market challenges, many VC funds continue raising capital, launching their third or fourth funds. Most frequently used structures are those in the Cayman, BVI, the US and the UK, taking advantage of their legal flexibility and tax benefits. As exits decline, funds are extending invest - ment periods and exploring alternative liquidity options for their LPs, such as: • investment period extensions, followed by automatic renewals; • secondary vehicles (SPVs) to allow some LPs to exit early; and • start-up leverage through agreements with strategic clients. These trends mirror global VC shifts in invest - ment strategy, not just those in Argentina. Key players in Argentina’s venture capital market The Argentine VC ecosystem continues to evolve, with key stakeholders including the fol - lowing. • Organisations and associations: (a) IAE Business School, through the NAVES programme, has been the pioneer of the promotion of entrepreneurship in the country; and (b) ENDEAVOR, ARCAP and ASEA played a very important role in the VC industry and entrepreneurship promotion.
• Accelerators and incubators: Notable play - ers include CITES, Glocal, GridX, Wayra and SF500, with a focus on agtech, biotech and applied technology. • Investment funds: Leading funds include The Yield Lab, Grupo Murchison, Pampa Start, Xperiment, Newtopia, BYX Ventures, Draper Cygnus, Innventure, GridX and SF500, which drive investment in key sectors such as agri - foodtech, biotech and deeptech. Local Context General overview Argentina’s entrepreneurial ecosystem is well- established but faces obstacles, including a lack of institutional investors willing to take VC risks, with national funding being nearly non-existent. This limits start-up financing and fundraising for VC funds. Moreover, Argentina faces structural challenges in financing start-ups and VC funds. There is no developed capital market that allows start-ups to access bank financing, nor are there pension funds that can invest in VC funds. This lack of financial tools places our country at a disadvan - tage compared to both developed and emerging markets in the region. Beyond the Ley de Apoyo al Capital Emprendedor , there are currently few specific tax incentives for VCs. Despite these limitations, Argentina continues to stand out as one of the most dynamic entrepre - neurial ecosystems in the world. Foreign inves - tors are attracted by its human capital, which is characterised by their resilience, adaptability and passion, and by its abundant natural resources. What to Expect in 2025 Looking ahead to 2025, Argentina’s VC market is showing signs of growth, with more active funds. In parallel, the government is working on deregu -
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