The presence of startups in our country is growing. The future of the entrepreneurial ecosystem is promising and has a lot of potential to be one of the sectors that accompanies Argentina’s departure from the crisis. The talent and creativity of Argentine entrepreneurs are, without a doubt, a differential, even in challenging contexts like the current one.
While there is still much to be done, in recent times different promising initiatives emerged, which in much of them were destined to shape the ecosystem, either in terms of building community, mentoringincubation and, of course, investment. This is essential since, without an ecosystem that understands all these factors, the development of the sector is much more difficult.
In terms of investment, Brazil and Mexico have “spotting in tip”, capturing most of the investments of Venture Capital in the region. While public information does not abound, according to an Endeavor report, investment rounds in Argentine startups represented approximately 10% of investment rounds in Brazilian startups. Our reading of this is optimistic for the future, the local ecosystem has everything to grow and enormous potential if we adequately address the challenges we have ahead.
Given this scenario, the focus is to do things well, create legal certainty, eliminate or adapt regulations that work development, continue betting on the sustainable growth of the ecosystem and our entrepreneurial community.
The global context also raises challenges, early stage rounds were losing prominence in front of rounds “Late Stage”the deadlines between the Seed Round and Series are stretching and a large number of Latin American startups have raised an investment round without lifting subsequent rounds. All signs of a market that still remains cold.
We are far from placing ourselves on the pessimistic side in the analysis of these signals: these moments have been – historically – those in which we must invest and prepare for the next cycle.
The key for startups to enhance and get ahead lies in making a very efficient use of the capital they have. To do this, in our view, it is key Understand in which areas their strengths reside and in which others need to surround themselves with Advisors or mentors who pounce them and save some learning curves. None of this replaces the vision of the FOUNDERwhich is what drives the startup, but it can be an interesting path to minimize the cost of iterations and, therefore, maximize the use of capital.
To fulfill this task, certain organizations are carrying out strategic accompaniment programs, through which they seek to contribute all their experience to help startups, Scale UPS (businesses that have a certain filming and now seek to climb their model) and corporations, to solve their technological needs.
In these initiatives, beyond assigning them Senior Advisors That they are accompanied in strategic decision making, a network of experts are made available to these organizations that will provide them with the most available tools available and carry out their vision. An example of this type of project is Ingenia, the IT Argentina, which seeks to accelerate Startups to giving them a key look in the areas in which these thriving technological organizations do not have expertise or filming,
But, What does our country need to be a cradle of startups?
First, the ecosystem is fundamental. This means that it is necessary to promote more incubators, accelerators, funds, corporate programs and, above all, community. What is happening at this last point, fills us with optimism, the ecosystem is full of entrepreneurs supporting each other to take their startups to the next level.
Secondly, although not in order of importance, we understand that the great slope of LATAM is to enhance the M&A (Mergers and Acquisions/ mergers and acquisitions), where the corporations of our region begin to find value in acquiring startups that provide them with innovation.
Of course all this is much easier in an orderly and stable macroeconomic contextwith clear rules of the play, legal certainty and regulations according to the time, pretend to be one Startup Nation With labor laws of the 70s, when everything was not yet or science fiction, it is a much more complex task than in other countries.
Last but not least, all of us who can contribute a grain of sand so that this ecosystem grows, we must do it.
The challenge is still great, but so is the opportunity. If we manage to capitalize on our strengths and work as a team, from the public, private sector and the entrepreneurial community, Argentina surely has all the conditions to become a real HUB of innovation and technology in the region.
Source: Ambito
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