Since its launch in 2010 Start-Up Chile has hosted over 1000 startups from across the globe in its six month accelerator program, based in Santiago de Chile. Besides free co-working space, mentorship and a visa for the country, entrepreneurs receive a $40.000 grant in return for no equity.
The program by the Chilean government comes with the objective to create a tech scene in the country. Unfortunately, due to the lack of follow-on investment opportunities most startups relocate after the six months of the program in order to raise funding or simply burn out.
In order to give the best performing startups of each batch more runway and an incentive to stay in Chile, Start-Up Chile has announced its own follow-on fund Start-Up Chile SCALE. Through the fund up to 10 startups of each batch will have the opportunity to get up to $100.000 in funding. In return the startup needs to stay another year in the country and needs to have a permanent legal presence in Chile. During the extended period, the startups will have access to all Start-Up Chile resources.
The follow-on funding is, like the $40.000 grant, equity-free but in order to receive it the startup needs to match the grant with a 30% outside investment. According to TechCrunch, Start-Up Chile companies have raised over $110 million with 85% coming from investors outside of Latin America.
According to the website about 80 edtech startups have participated in the Start-Up Chile accelerator program.
- Start-Up Chile Launches Follow-On Fund To Boost Local Growth | TechCrunch
- Chile’s Grand Innovation Experiment | TechCrunch