27 August, 2018
Argentine insurers get greenlight for fintech investments

Regulators allow Argentina’s insurance companies to invest in startups via venture capital funds

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By Katie Llanos-Small

 

Argentine fintech companies are eyeing a new, USD 131 million pot of potential investment, thanks to a recent rule change.

Insurance companies can now invest up to 1% of their portfolio in startups, via venture capital funds. That equates to around ARS 4 billion (USD 131 million), according to Mariano Mayer, Argentina’s secretary for entrepreneurship and SMEs.

Previously, insurance companies were not allowed to invest in such funds, due to their high risk of losses.

Under Argentina’s entrepreneurship law, such investments are eligible for tax incentives.

Currently, Argentine insurers invest close to 40% of their portfolio in government bonds, and around 26% in domestic investment funds.

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