“Since 2020 there were 55 rounds of investments from North America totaling US$ 2,388 million. Globally, investment shows a drop for the third consecutive quarter, as a result of the high volatility in the market,” the KPMG report states.
The work indicates that local venture capital funds (risk investment funds) mainly targeted “early rounds” (small startup investments) in the third quarter, and this sector has maintained a very solid level of activity through 2022. “.
The report says that in the first nine months an average amount of financing for Argentine startups of US$2.6 million was registered for seed rounds (second investment of minimum US$1 million). In the case of type A rounds for companies that have already started their project, the average investment amount was US$13.9 million.
“At the local level, a total of 13 financing rounds of more than US$1 million were registered in the quarter, totaling 45 for the first 9 months of the year,” says the private report.
The partner in charge of Deal Advisory KPMG Argentina, Andra Oteiza, stated that “the report analyzes the role of local or regional funds and is very relevant for Argentine startups since they lead the financing of up to 50% of the seed rounds.”
“As the financing stages progress, foreign funds, particularly from the United States, take an absolute predominance in the financing of startups with more than 90% participation during the late or growth stages when analyzed by amount of operations”said Oteiza.
In the Argentine market, the volume of activity in 2022 was relatively stable with an average of 5 financing rounds per month between seed rounds and A rounds.
May and August show rounds with seed amounts and extraordinary Series A with values between US$20 million and US$35 million.
May had a B round of US$55 million raised by Startup Pachama, and a C round by Startup Belong founded by Argentine Alejandro Resnik.