Start-Up Chile

Start-Up Chile
Name	Start-Up Chile
Formation	2010
Headquarters	Santiago, Chile
Founder	Sebastián Piñera
Type	Public accelerator
Region served	Chile; international
Parent organization	Corfo

Start-Up Chile is a public accelerator and entrepreneurship program created in 2010 to attract early-stage, high-potential founders to Chile. Conceived as an innovation policy experiment, it sought to position Santiago, Chile as a regional hub for technology and entrepreneurship by offering equity-free funding, visa support, and access to local networks. The initiative operated as a flagship program of Corfo and became a high-profile example of market-oriented development strategies in Latin America, attracting teams from across North America, Europe, Asia, and Africa.

Background and Objectives

Start-Up Chile launched amid efforts by the administration of Sebastián Piñera to stimulate foreign direct investment and diversify Chile’s export base beyond commodities. The program aligned with policy discourses promoted by institutions such as the Organization for Economic Co-operation and Development, Inter-American Development Bank, and World Bank that emphasized entrepreneurship-driven growth. Objectives included importing talent to catalyze local ecosystems in cities like Santiago de Chile and regions such as Valparaíso Region, strengthening linkages with multinational hubs like Silicon Valley, Tel Aviv, and Shenzhen, and reducing barriers faced by founders from countries like Argentina, Brazil, Mexico, Colombia, Peru, Spain, United Kingdom, and United States.

Program Structure and Services

The program offered a standardized acceleration track featuring equity-free seed grants, typically delivered in phased disbursements, combined with services such as residency visas, co-working space, mentorship, and access to investor networks. Participants engaged with a curriculum influenced by practices from accelerators such as Y Combinator, Techstars, and 500 Startups, while receiving support from organizations like Wayra and local incubators associated with universities such as Pontifical Catholic University of Chile and University of Chile. Start-Up Chile convened demo days, pitch events, and workshops with partners including Microsoft, Google for Startups, Amazon Web Services, and regional venture groups like Kaszek Ventures and Nubank's early supporters.

Program components included themed cohorts and verticals that mirrored industry clusters present in Santiago and regions like Antofagasta, addressing sectors where accelerators worldwide, from MassChallenge to Plug and Play Tech Center, have concentrated efforts—fintech, agritech, energy, and health technologies. The initiative coordinated with immigration services and municipal actors such as Santiago Metropolitan Region authorities to facilitate short-term residencies and work permissions for founders.

Selection Process and Funding

Applications were competitive and open internationally, evaluated by panels comprised of representatives from Corfo, venture capitalists from firms like Accion Venture Lab, angel networks such as Latin American Business Angels Network, and entrepreneurs from startups like Cornershop and NotCo. Selection criteria emphasized scalability, team quality, and potential for links to Chilean markets and industry clusters like mining around Copiapó and agriculture in O'Higgins Region. Funding modalities included equity-free seed transfers and in-kind services; capital arrangements drew scrutiny in comparisons with equity-based models used by Andreessen Horowitz and Sequoia Capital. Follow-on financing prospects often involved engagement with accelerators and funds across Latin America and global gateways such as New York City and London.

Impact and Outcomes

Start-Up Chile reported attracting thousands of entrepreneurs from dozens of countries, contributing to ecosystem growth in Santiago, spawning coworking spaces, angel networks, and specialized events akin to Web Summit and South by Southwest. Measurable outcomes cited by supporters included company formation, job creation, and increased international visibility—paralleling narratives around accelerators like Y Combinator and policy initiatives in Estonia and Singapore. Several cohort companies mobilized follow-on investment from funds including Sequoia Capital-backed vehicles and regional players such as Monashees. The program also influenced national innovation policy debates alongside initiatives by Conicyt and entries to regional startup rankings and festivals in cities like Buenos Aires and Mexico City.

Criticism and Controversies

Critics argued the program prioritized international founders over local entrepreneurs, raising questions similar to debates around trade-offs seen in policies promoted by World Bank reforms. Analyses by academics and think tanks compared Start-Up Chile’s cost-effectiveness with targeted local capacity-building programs championed by institutions such as OECD affiliates and Economic Commission for Latin America and the Caribbean. Concerns included retention rates of foreign startups post-grant, possible displacement effects in neighborhoods undergoing gentrification, and the efficacy of equity-free models versus equity-participation programs favored by some venture funds. Episodes involving administrative audits and parliamentary scrutiny by members of the Chilean Congress stimulated public debate over transparency and long-term value for taxpayers.

Notable Alumni and Success Stories

Alumni companies and founders who participated in cohorts later achieved visibility, partnerships, or exits that drew attention from international press and investors. Examples included ventures that partnered with corporations like Falabella, LATAM Airlines, and Cencosud; companies that secured venture rounds from firms such as Sequoia Capital, Andreessen Horowitz, and Khosla Ventures; and startups that expanded into regional markets including Argentina, Peru, Colombia, and Mexico. Several founders became ecosystem builders themselves, founding accelerators, angel networks, and investment vehicles that engaged with entities like ChileGlobal Ventures and academic entrepreneurship programs at the Catholic University of Chile.

Category:Business incubators