Don’t worry, we’re talking about:
Spanish (Spanish), too much!
Contxto – If the Chilean venture capital (VC) scene is crowded for such a small country, yet still fast and nimble – as we saw in last week’s VC rankings – then the star country of this week packs a punch with a handful of players.
Related Articles: Top 7 venture capital funds in Chile
The financial and economic turmoil that has plagued Argentina for so long is not deterring investors. At first glance, it would appear that the venture capital ecosystem in the country is actually quite on fire.
Perhaps, an indicator of the misfortune that has plagued this South American country is the fact that funds in this ranking are, by far, among the most intrepid foreign investors. They venture into the wider world of Latin American startups with more enthusiasm than most… and probably to their advantage too!
Again, if this list seems shorter than the others, that’s because it is. Clearly, the ravages of economic instability are not an ideal situation for finance-focused institutions (I know: No s***t, Sherlock).
Indeed, over the years, many once active venture capital firms have disappeared, as Argentina’s venture capital ecosystem continues to diverge into local investors diversifying globally to secure their assets, or homegrown capital foreigner entering Argentina to reap the benefits. low liquidity, high interest rates and inflation.
Related article: Top 9 venture capital funds in Mexico
Either way, it is a thriving ecosystem that cannot be ignored. So, without further ado, we offer you:
The top 5 venture capital funds in Argentina!
NXTP is an early stage VC with a bias towards balanced diversity. It has a portfolio rich in sector diversity, investing broadly in more than 10 different industries. They are starting from fintechs – the biggest bet in their portfolio, with nearly a quarter of all their investments (24.3%) – followed closely by the logistics industry at 16.2%.
Meanwhile, it maintains a relatively good balance when it comes to their geographic diversity, with almost exactly half of their investments resting safely close to home in Argentina. They also seem pretty intermediate when it comes to their average ticket size: between US$500,000 and US$2 million per person.
- Total start-up investments: 37; of which 33 are from Latam; including 18 Argentinians
- Notable startups: Satellogic, Liftit, Cargox
- Main releases: Comenta TV, Aventones
- Latest investment: Series A worth US$10 million in Cobli on October 24, 2019
This VC is industry and stage independent, investing primarily in seed, Series A and B. It is primarily focused on finance, with 29% of investments going into this sector. Health and education follow with 10% each. Nothing too strange so far.
But the funny thing is that, even if it is an Argentinian investor, his native country is far from being the most present country in Kaszek’s portfolio. That honor goes to Brazil with 28 companies in this Argentinian fund’s portfolio, followed by six in Mexico, and far behind Argentina with five seed investments.
- Total start-up investments: 45; of which 43 are from Latam; including 5 Argentinians
- Notable startups: Creditas, QuintoAndar, Konfio, Loggi, Nubank, Gympass
- Key releases: BelezaNaWeb, PedidosYa, Eventioz, Nubeliu
- Latest investment: Series B worth US$8 million in Docket on February 12, 2020
Alaya Capital Partners
Alaya Capital Partners is another start-up fund based in Argentina, but also has headquarters in Chile and the United States. Nonetheless, its largest amount of start-up investments are in Argentina—58 percent, to be precise.
The rest is split between its two other host countries and Mexico. Alaya also doesn’t seem to care too much about one industry. One thing is certain though; he loves his technology. Digital dominance is clear in this VC’s investments given its preference for adtech (16.7%) and e-commerce (12.5%), two preeminent sections of this fund’s portfolio.
- Total start-up investments: 24; of which 22 are from Latam; including 14 Argentinians
- Notable startups: 123Seguro, Burn to Give, Inti-Tech
- Key Outputs: TranslationBackOffice
- Last investment: undisclosed seed round in Inti-Tech on December 4, 2019
Cygnus is a rookie VC looking to get into the digital economy game. He is mainly interested in the development of consumer Internet issues, business to consumer (B2C) and business to business (B2B), marketplaces, digital media, media networks, online games , mobile applications, social networks and software as a service (SaaS). .
A good digital bite, but you should expect more soon, as the VC recently set up a joint fund with Tim Draper to supercharge the potential of these technologies across the region, particularly in biotech, fintech, agtech and cleantech (which is a sustainable technology) Industries.
- Total start-up investments: 30; of which 21 are from Latam; including 21 Argentinians
- Notable startups: Satellogic, Auth0, S4, Stamm, Dynami
- Key outputs: SparkFlow and RingCaptcha
- Latest investment: Investment worth US$3 million in Alxerion, Skyloom and Stamm in December 2018
Patagonia is a bit like a thoroughbred; it’s been infused with leaders who have already been successful with a long history in the VC world and now has the track record to prove it. As it stands, this VC has 21 investments of which more than half have resulted in successful exits, 12 to be precise. It looks like this investor’s portfolio tilt towards digital media, ad tech, and marketing is really paying off.
- Total start-up investments: 21; of which 18 are from Latam; including 17 Argentinians
- Notable startups: 123Seguros, TTSPRTS, FAV!
- Key releases: Properati, RecargaPay
- Last investment: Wondey on March 28, 2018
- Quasar Ventures
- CAP Ventures
- Oikos Venture Capital
Related Articles: Tech and startups in Argentina!
Research by Salvador Betancourt-Ramírez with sources obtained by correspondence with the VCs or, if not answered, cited on the funds’ websites.