Argentinean insurance companies will soon be allowed to invest up to 1% of their capital in entrepreneurial capital funds, according to a press release on LAVCA. The Ministry of Production of the Nation of Argentina has formed a partnership with the National Insurance Superintendent, the Argentine Associate of Private Capital (ARCAP by Spanish acronym), the Argentine Entrepreneurs Association (ASEA in Spanish), and the insurance sector to create an entry point for this new investor in the Argentine entrepreneurial ecosystem.
Insurance companies will be able to invest via Entrepreneurial Capital Institutions (ICE), allowing insurers to take advantage of new legislation passed in the Entrepreneurs’ Law. This change is also meant to make capital more readily available to startups in the Argentine ecosystem.
“With this new resolution, there is a new opportunity for all insurers, who are one of the biggest investors of venture capital in the world. Fundamentally, this is big news for the entrepreneurs who will be able to access around AR$4B (~US$133.5M) to support their projects,” said Secretary of Entrepreneurship and Small Business, Mariano Mayer.
Read more in the original press release for LAVCA.