Venture Debt - Argentina

  • Argentina
  • Argentina's Total Capital Raised in the Venture Debt market market is expected to reach US$114.7m in 2024.
  • Traditional Venture Debt leads the market with a projected market volume of US$93.7m in 2024.
  • When compared globally, the United States is anticipated to generate the most Capital Raised (US$31,850.0m in 2024).
  • In Argentina, the Venture Debt market is gaining traction as startups seek alternative capital raising options amidst economic uncertainties.

Key regions: India, United Kingdom, China, Europe, Israel

 
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Analyst Opinion

The Venture Debt market in Argentina has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Argentina have played a crucial role in the development of the Venture Debt market.

Entrepreneurs and startups in the country are increasingly turning to venture debt as an alternative financing option to traditional equity funding. This is primarily due to the flexibility and lower dilution associated with venture debt, allowing entrepreneurs to maintain a larger stake in their companies while still accessing the necessary capital for growth. Additionally, venture debt offers a quicker and less complex funding process compared to equity financing, which is particularly appealing to startups looking for rapid access to capital.

Trends in the market have also contributed to the growth of the Venture Debt market in Argentina. The country has seen a surge in entrepreneurial activity in recent years, with a growing number of startups emerging across various industries. This has created a demand for alternative financing options, such as venture debt, to support the expansion plans of these startups.

Furthermore, venture capital investors in Argentina are increasingly recognizing the value of venture debt as a complementary financing tool, leading to a greater availability of venture debt funding in the market. Local special circumstances have also played a role in the development of the Venture Debt market in Argentina. The country has a vibrant and dynamic startup ecosystem, with a supportive regulatory environment and a growing network of incubators, accelerators, and venture capital funds.

These factors have created a favorable ecosystem for venture debt providers, attracting both domestic and international players to enter the market. Additionally, the government of Argentina has implemented various initiatives to promote entrepreneurship and innovation, further fueling the demand for venture debt financing. Underlying macroeconomic factors have also contributed to the growth of the Venture Debt market in Argentina.

The country has experienced periods of economic volatility and currency depreciation, making traditional debt financing more expensive and less accessible for startups. In such an environment, venture debt has emerged as an attractive alternative, providing startups with access to capital at competitive rates. Furthermore, the low interest rate environment globally has made venture debt a more affordable financing option for both startups and venture debt providers.

In conclusion, the Venture Debt market in Argentina has been growing rapidly due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As the startup ecosystem continues to thrive and the demand for alternative financing options remains strong, the Venture Debt market in Argentina is expected to continue its upward trajectory in the coming years.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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