Startup Latin America: Deep Dive Into the Accelerator Ecosystem in Buenos Aires

The Accelerator Conundrum is a multipart series that challenges the prevailing wisdom of the tech startup ecosystem that entrepreneurs should Blitzscale out of the gate. Written by Sramana Mitra, the Founder and CEO of One Million by One Million (1Mby1M), the world’s first global virtual accelerator, it emphatically argues that a better strategy is to Bootstrap First, Raise Money Later, focus on customers, revenues and profits. 1Mby1M’s mission is to help a Million entrepreneurs reach a million dollars in annual revenue and beyond. Sramana’s Digital Mind AI Mentor virtually mentors entrepreneurs around the world in 57 languages. Try it out!

Buenos Aires is, without a doubt, the undisputed financial and talent epicenter of Argentina. It is a city in which I have spent many wonderful days walking the streets of Palermo, dancing at Milongas, partying at a Cupola apartment on Avenida de Mayo, listening to music at Torquato Tasso. I also spent a week huddling with the Mercado Libre team at their headquarters in 2007 plotting their next move.

With a startup ecosystem that is home to most of the country’s unicorns, a high concentration of venture capital, and a deep talent pool in software and fintech, its influence is unmatched in the region. The city is a powerhouse in sectors like fintech, e-commerce, and deep tech, and it’s the natural first destination for any global investor looking to enter the Argentine market.

However, even a dominant ecosystem like Buenos Aires has a fundamental flaw: it has bought into the “Blitzscale from the get-go” philosophy. This model, which I’ve thoroughly deconstructed in my The Accelerator Conundrum blog series, is a dangerous game that is actively holding back the ecosystem’s full potential. It’s a strategy that pressures founders to prioritize speed and capital at all costs, ignoring the fundamentals of building a resilient, profitable business. In a market as complex as Argentina, defined by persistent economic volatility and a labyrinth of regulations, this approach is not just a gamble—it’s a recipe for disaster. It leads to a glut of cash-burning startups that are unable to survive when the next round of funding doesn’t appear, leaving founders with diluted equity and a high rate of failure.

The only viable and proven path is to “Bootstrap first, raise money later.” This is the core of my methodology. It is a philosophy that empowers you to build a real business with customer revenue, not investor money. You achieve profitability, prove your model, and only then, from a position of strength, do you consider raising capital. This approach builds a resilient company that is immune to the whims of the funding market. You are in control. When you do raise capital, it is from a position of strength and strategic necessity, not desperation. This is the path to building a truly great, resilient company.

A Comparative Analysis of Buenos Aires’ Accelerators

For entrepreneurs in Buenos Aires, 1Mby1M is not just an alternative to local accelerators; it’s a necessary antidote to the flawed philosophies they promote. Here’s a comparative look at some of the key players in the city.

Wayra Argentina

Wayra, as the corporate venture capital arm of Telefónica, has a strong presence in Buenos Aires. It invests in and accelerates startups that are strategically aligned with Telefónica’s business goals. The value proposition is access to Telefónica’s vast network of customers and the potential for a corporate partnership. However, like other corporate accelerators, this model is highly restrictive. Founders are essentially building a company to serve a larger corporation’s needs, which can limit their market, their business model, and their ultimate exit strategy. Moreover, Wayra takes an equity stake. 1Mby1M, on the other hand, is completely founder-centric and industry-agnostic. Our guidance is always focused on what is best for the founder’s business, not on the strategic interests of a corporate partner.

NXTP Labs

NXTP Labs is an experienced Latin American accelerator and venture capital firm that has been a major player in the region for years. Its model is a traditional “equity-for-cash” program where it provides funding and mentorship in exchange for a significant equity stake. Its value proposition is access to its network of investors and partners across the region. However, this is a classic “Blitzscale” model. NXTP’s primary business is taking equity in exchange for a fixed-term program. This transaction is often a poor one for the founder, as the value of the network and the fixed-term mentorship may not be worth the long-term cost of lost equity. In contrast, 1Mby1M is a non-equity-taking model. We provide continuous, on-demand support and a global network of mentors without ever taking a single share of your company.

Endeavor Argentina

Endeavor is a global organization that supports high-impact entrepreneurs. Its model is based on intensive mentorship from successful business leaders and connecting founders with a network of resources. While Endeavor’s network is highly valuable, its programs are generally geared toward more mature startups that have already achieved significant traction and are poised for high growth. For early-stage, pre-idea, pre-product, pre-revenue founders, its model is often out of reach. In contrast, 1Mby1M provides a comprehensive methodology and continuous strategic guidance from the very beginning. Our Digital Mind AI Mentor, which can mentor in Spanish and provides private, 24/7 strategic guidance, offers a far superior and more sustainable alternative. We teach founders how to build a real business from the ground up, not just how to network or raise financing.

Comparison Table

Photo Credit: Matias Cruz from Pixabay

This segment is a part in the series : Startup Latin America