INSUBCONTINENT EXCLUSIVE:
Even as the Argentine government was announcing the biggest slide in the country economic output in nearly a decade, technology investors in
the nation capital are all gearing up for record fundraising years.
Three of the country biggest firms (which are still small by
international standards) are raising new, exponentially larger, funds in a sign that technology companies are showing promise despite the
bleak picture painted by the broader economy in Latin America.
Leading the pack is NXTP Labs, the early stage investor that developing a
regional network of accelerators and seed investment funds through partnerships that extend from Mexico City to Montevideo and Sao Paulo up
Despite its regional reach, home for NXTP is Buenos Aires and it there that the firm began accelerating and investing in early stage
companies back in 2011.
NXTP has already had 13 exits, according to Crunchbase, and is perhaps the most mature of the crop of investment
It also looking to be among the largest as it capitalizes on that trackrecord of exists and a portfolio of investments that has raised
follow-on capital of nearly half a billion dollars.
The firm is currently knocking on doors to raise $120 million, a significant step up
from its previous $38.5 million investment vehicle.
NXTP Labs isn''t the only firm based in Argentina that looking to significantly expand
its capital under management
Jaguar Ventures,a firm that invests in both Argentina and Mexico, andDraper Cygnus, an Argentine-focused, Buenos Aires-based investment firm
has already raised roughly $30 million of the $60 million it has targeted for its new fund,
While Cygnus is very much focused on the
early-stage Argentine opportunity (which makes sense given the track record of technology companies coming out of the country — and the
capital behind the firm) both NXTP and Jaguar have more of a regional perspective
And Jaguar, too, is massively increasing the size of its fund.
While its first fund was only $10 million, the new one will be closer to $60
million, according to one person with knowledge of the firm plans.
Behind the surge of confidence in the region technology fortunes, despite
the economic turmoil that continues to roil the region, is a growing track record of valuable companies — all with a homebase in Latin
America largest market.
And while Brazil remains the region undisputed economic powerhouse, there&re growing numbers of tech giants coming
from Mexico, Argentina, Colombia, and Chile, investors said.
As Gonzalo Costa, a co-founder of NXTP Labs wrote in an editorial for
TechCrunch earlier this week:
For the first time, companies are raising rounds of $100 million plus
99 (acquired by Didi Chuxing), Nubank and Rappi, have all raised mega rounds in the past two years
Others have raised large rounds, such as Selina and Movile, with $90 million-plus, or Auth0 (part of our portfolio), with $50 million rounds
in 2018.But the increase in dollar amounts is not only driven by mega rounds
More than 30 transactions of $3 million or more happened in 2017, which is triple in amount of rounds of that figure when compared to 2016
This shows a market maturity not seen before.
Not only are companies attracting more capital, but entrepreneurs are launching companies
across a dizzying array of technology verticals.
These are companies like NubiMetrics, which provides competitive analysis and data for
marketplaces like MercadoLibre; or Satellogic, which is developing a network of satellites for earth observation (and raised $27 million
last year); or Pago Rural, which provides financing options for farmers in Latin America (and is raising a $20 million round, according to
sources).
It clear that venture capital and tech in Argentina (and across Latin America) is having a moment
But with a broader base of local capital, it possible that this moment could become a movement
And that would have a profound effect on economies around the world.
