Contxto – In spite of the risks surrounding the Argentine peso sharply declining, some U.S. companies are investing in Argentine startups. The most recent was U.S. toolmaker Stanley Black & Decker that acquired a stake in home renovation startup, IguanaFix.
While David Thomson from Reuters recently bought 15 percent shares of Argentine alternative bank Brubank, Stanely Black & Decker invested in an online company that connects homeowners with service providers.
Behind this undisclosed transaction was the U.S. company’s VC funding arm, SWK.N.
Jack of all trades
Within IguanaFix’s solutions are home or office services ranging from repairs, painting, among other tasks. Everything is available through the app for convenience, transparency and quality.
This company has experienced some past milestones. In 2016, Temasek Holdings from Singapore and U.S. tech giant Qualcomm Ventures helped the company raise over US$20 million.
Due to the acquisition, Stanley Black & Decker will earn distribution rights for IguanaFix’s technology.
Argentina tech potential
Many doubtful eyes are currently looking at the future of Argentina’s startup ecosystem following its massive stock market plummet. Not only is the Argentine peso at an all-time low since 2001, but also stocks. Moreover, bonds are skyrocketing and show an upsetting inverted yield curve.
For IguanaFix founders, though, Argentina’s tech potential won’t be going away anytime soon.
“I don’t believe that investment in tech will dry up in Argentina,” said CEO and founder Matias Recchia. “Argentine entrepreneurs have proven that they can adapt to an ever-changing economic environment and rapidly expand to other markets from here.”
Adding confidence is the fact that Harvard Business School ranked Argentina as number one in tech skills among 60 countries, according to Reuters. It’s also Latin America’s third-largest economy.