Everything you need to know about Chile’s startup scene

Chile Startup Guide

Source: Pixabay

While Mexico’s startup scene is awesome, it’s not the only cool Latin American startup hub. There’s Chile, Argentina, Brazil, Colombia and more! And in about 3 months, Josh and I will depart Mexico and visit Chile. So on that note, I’m thrilled to let you know that the community and I got together and wrote this Chile Startup Guide for you!

In this post, you will find:

  • What everyone needs to know about Chile’s startup scene

If there’s something missing, leave a reply and I’ll update the post periodically.

What everyone needs to know about Chile’s startup scene

  • Innovation — According to the Global Innovation Index 2021, Chile ranks #1 in Latin America and is followed by Mexico and Costa Rica.
Source: CBInsights
  • VC funding — Per Statista, venture capital funding deployed in Chile increased over 1.6K% between 2015 and 2019. Not surprisingly, in 2020 Chile hit a new high in total venture capital funding at $136M. In October 2021, US$73.2M were deployed in Chilean Startups according to VC Insights.
Source: Stastista
  • Startup categories — At 105 startups, there are more software and data companies than in any other category. At 57 companies, the second-tier categories include: social and leisure.

💰 Interested in learning more about the startup-VC opportunity that lies in LATAM? Read this post.

🗞 Want to follow or join my journey through LATAM’s hottest startup hubs? Subscribe to my newsletter here.

🗓 Want to meet-up with the Chile startup community for coffee in Santiago, Chile? RSVP here.

Why Chile will attract investors and founders alike

So, why would you go to Chile? The TL;DR is Chile has a stable economy and wants you to become a founder in Chile! For investors: I love that they are an *underestimated market, cost of living is low, talent abundant, and that they’re women-friendly.

  • Government, VISAs, taxes, and Double Taxation Avoidance Agreements — The government offers 1-yr work visas, and $30K+ grants and investment dollars to founders to get started. Chile also offers low corporate tax rates at 10% until 2022 (and then 25–27%) and Double Taxation Avoidance Agreements. Software companies can also charge their clients without VAT if they provide their services from Chile. Read more on the Chilean startup visa here.
Source: LivingCost.org
  • Cost of living — The cost of living per person in Chile is over 2Xs lower than it is in the US. Cost of living is low.

*Underestimated markets: underestimated markets tend to be markets that are not the US or of the original colonizer countries but have the potential to become the world’s startup-VC leaders.

Underestimated founders: founders who can build unicorns but are looked over because they don’t fit the stereotypical Silicon Valley mold (Nathan Lustig — Underestimated founders article)

Underestimated GPs: Underestimated GPs are those who can build funds that will return alpha but are looked over because they don’t fit the stereotypical Silicon Valley mold (or the equivalent in other geographies).

Chile is cool, right?! Let’s learn more below.

Chile founders and startups to watch

Founders to watch

Startups to watch

  • Algramo — A startup focusing on providing reusable packaging made specifically for the consumer. Using radio frequency to create this innovative solution to packaging waste the startup aims to create bulk products creating wholesale relationships with various industries.

For more, look at Failory’s list of the 17 Fastest Growing Startups Founded in Chile. Also, here is LatamList’s 10 Chilean Startups to Watch in 2020.

Chile startups with exits

The number of exits completed by startups accelerated by Start-Up Chile reached 25 as of mid-2021.

  • MuvSmart — acquired by 99minutos

Start-Up Chile has begun to see a few of its incubated startups get acquired, including:

  • Bizpora

Chile investors

According to Startup-Chile’s data, the top most active investors in Chile include: Kaszek Ventures, Startup-Chile and Aurus.

Source: Startup-Chile

Chile-based VCs

  • Alaya Capital is a Venture Capital Fund geographically located in Argentina, Chile and USA. As a private fund Alaya invests in startups and small size enterprises with strong growth potential that are seeking for a financial injection in order to grow and expand taking the business into the next level.

International VC

* If you see an asterisk, they were called out to be most active by the community.

  • ACCION is a fund focused on fintech seed investing. ACCION invests across Emerging Markets and looks for startups that promote positive impact in society. Some of their portfolio companies are Konfio, Clip, and Henry.

Chile accelerators

  • Platanus is an exclusive founder-friendly program focusing on early stage companies with strong technical foundations. Their offer to Latin American startups: mentorship, technical support, and US$100,000 in exchange for 7% equity in the business.

Chile co-working spaces

Source: Google Maps


Additional reading

  • AMI | Latin America Market Intelligence Research

Community contributors 🙌🏽 Thank you to all contributors: Josh Taub, Alex González Ormerod, Carlos Javier Scheuch, Nicolas Bernal, Chaitanya Ravi, Fer Díaz, Pedro del Campo, Leonardo Barrientos, Ezequiel Martín, Antonia Rojas, Funke, Patrick Alex and anonymous contributors!

Author Lolita Taub is a stealth mode GP and Scout at Lightspeed Venture Partners, where she invests in community-driven companies. With 15 years working within the Silicon Valley ecosystem, she has accomplished $70M+ in sales and made 70+ investments as an angel investor and VC at Backstage Capital and The Community Fund. Lolita is also a Co-Founder of the Startup-Investor Matching Tool, the GP-LP Matching Tool, and LaaS. Forbes and Inc Magazine have featured her as a woman promoting investment in underestimated founders and funders. She has a BA from the University of Southern California and an MBA from the IE Business School. Most importantly, she is a dog mom to the cutest Dachshund mix, Choco.



About investing in community-driven cos + supporting our underestimated founder/investor fam. @lolitataub

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Lolita Taub

About investing in community-driven cos + supporting our underestimated founder/investor fam. @lolitataub