Grants to FONSOFT-ANPCyT Entrepreneurs

CONTEXT:

The goal of FONSOFT’s grant program is to fund and promote R&D projects in the ICT sector and see them through to fruition, fulfilling the objectives outlined in the “Innovative Argentina 2020” plan. The agency supports research centers and universities in expanding innovative tech projects and provides scholarships to eligible students with proven academic records. FONSOFT provides grants newly formed firms in the Software and Service sectors in addition to project development advice. FONSOFT maintains a rigorous system of evaluations, with beneficiaries returning every year to renew the agency’s funding commitment.  Underperforming organizations may be rejected for further financing, while successful groups may be given expanded resources.

Accepted grant proposals will receive funding for up to 50% of overall project costs. The maximum grant value is ARS 270,000.

SUPPORT MECHANISM:

The National Agency for Scientific and Technological Promotion (ANPCyT) supports, through the Trust Fund for the Promotion of the Software Industry (FONSOFT), the completion of undergraduate careers, the generation of new ventures and the strengthening of SMEs, producers of goods and services belonging to the ICT sector.

IMPLEMENTING AGENCIES:

Trust Fund for the Promotion of the Software Industry (FONSOFT), National Agency for the Promotion of Science and Technology (ANPCyT).

ELIGIBILITY:

Individuals or companies less than 24 months old. 

Timeline:

FONSOFT founded its grant program in 2005. It opened its first call for proposals in 2006 and continued holding one per year until 2014, when it expanded its operations to two calls per year. 

RESULTS:

The FONSOFT grant program has successfully funded 123 companies, 199 entrepreneurs, and 386 students. Due to its increased activity in 2014, the agency implemented a dissemination plan of 24 regional seminars and workshops regarding project formation. It also created the Beneficiary Care Center, a toll-free number that grant recipients can contact for advice and information. A total of ARS 100,146,799 has been disseminated through FONSOFT’s grant program.

CHALLENGES + LESSONS TO DATE:

The regular evaluation process has been integral to the program’s longevity and success. Engaging with young students and nascent entrepreneurs is highly rewarding for a country’s economy, but success relies on constant contact. The agency’s partnerships, advice, and support serve as a safety net that mediates an ever-present risk of failure.

NOTES + ADDITIONAL CONTEXT:

The grant program goes hand-in-hand with a national tax incentive that supports software companies. Law 25.922 provides a proportional tax credit on social security payments and an overall tax reduction, resulting in an effective 14% tax rate for digital corporations. 

  • FONSOFT website
  • Relevant tax codes were found in Ernst & Young’s Worldwide R&D Incentive Reference Guide, available here.

CURATED BY

Global Entrepreneurship Network
United States
Global Entrepreneurship Network
United States
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