>> A few years ago big name investors would have steered clear from Argentine startups, but now venture capital is streaming into Buenos Aires, outpacing the rate of growth in neighbors Chile and Brazil. I'm Cassandra Garrison in Buenos Aires for Reuters. While startups still face a challenging regulatory environment and anxiously await labor reform, Argentine President Mauricio Macri's business friendly agenda is spurring new interest by investors who avoided the country under previous populist governments.
Billionaire George Soros is one of those investors. He backed a banking app called Uala, which launched in Argentina in October. Its founder, Pierpaolo Barbieri, told us that investment was, which was the first Soros investment in the real economy in Argentina in about 15 years, was all about the timing and the change in government.
>> People told me I was insane for trying to invest in Argentina and start a company here and, before that, to invest in it's bonds. This may end badly as well, but I think countries don't change until they change.>> Argentina is now the third largest venture capital market in Latin America, but start-ups still struggle against a barrage of red tape and financial complications, including a high rate of inflation.
But President Macri's administration is aiming to address some of those lingering concerns. A new national entrepreneur's law allow companies to set up their businesses online and 24 hours and the city government is also exploring ways to promote impact investment including social impact bonds. Some propose labor and tax reforms could also lower cost for start ups and doing business in Argentina.