2022 | StartupBlink View the Global Startup Map p. 164 Startup Ecosystem Overview Argentinian entrepreneurs have demonstrated their ability to create high impact startups, and the country is blessed with both highly skilled entrepreneurs and specialized programmers. The challenges that Argentina faces are mainly economic; the country suffers from a long term devaluation in the local currency and severe inflation. These challenges were further aggravated by the COVID-19 pandemic, which discouraged foreign investment and drove many international companies to relocate overseas. Argentina was one of the richest economies in the world 100 years ago, yet its current state of economic uncertainty is not helping local entrepreneurs thrive. There is still too much bureaucracy and red tape in the Argentinian economy, exemplified by the confusing blackmarket exchange rate for the Argentinian Peso. Despite all this, Argentina is still one of Latin America’s biggest economies in terms of GDP, and has the potential to be a powerful regional startup hub. The success of MercadoLibre is truly remarkable; The company became one of the strongest Latin American tech startups after launching online ecommerce and auction platforms. With Auth0, the nation demonstrated its capacity to foster Argentinian-owned unicorns. However, Auth0 demonstrates the difficulties of building an impactful startup in Argentina, as the company was acquired by Okta and is now headquartered in the US. Early stage Median round: $0.5M Medium and late stage Median round: $7M Startups Funding Share Hopefully Ualá, the country’s newest unicorn, will not follow suit. Argentina’s public sector needs to improve infrastructure and reform legislation to avoid brain drain and attract foregin entrepreneurs. This process was started in 2017 when a new Entrepreneurship Law was passed, and has continued with other legislation like the Knowledge Economy Law. More should be done to ensure local entrepreneurs feel they can create startups with regional and global impact while remaining in Argentina. The country has plenty of tech talent and STEM graduates, and we hope to see them embrace entrepreneurship within the country.