Start-Up Chile was launched in 2010 as an initiative of the Chilean Government to change the nation’s culture towards entrepreneurship and to position Chile as the hub of innovation for Latin America. It is important to understand that, economic impact was not a goal at the beginning of the program (The culture needed to change first in order to ensure long-lasting entrepreneurial domestic activity).
In March 2016 Start-Up Chile conducted a survey to measure the economic impact of the program. With any public intervention it is important to understand that the policies implemented are improving the situation of the individuals directly and indirectly affected by them.
The data set of respondents accounted for 70% of our portfolio. Those surveyed were participants across all of Start-Up Chile programs, TSF, Seed and Scale. Of the 70% of responses, 21% reported formal valuations and overall the findings demonstrated the positive effect of Start-Up Chile.
51.1% of startups accelerated by the program, reported they were still active in 2016. Studies are limited measuring
survival rates, however Start-Up Chile consistently proves to be on par with other prominent accelerators.
Of the 51.1% of surviving startups, 55.4% of them are Chilean. It could be argued that cultural proximity is a reason for their
success. Chilean startups tend to have broader networks, better connections and more opportunities to access public
follow-on funds to avoid death valley.
21% of startups reported formal valuations to the amount of 1,350 million USD, meaning they were validated by the market.
The accumulated valuation of the startups is 34 times larger than the 39.7 million USD invested in the program by CORFO.
Startups have collectively raised 30.5 million USD in capital, 29% of which came from public funds and 71%
from private sources. The raised capital is 3 times the yearly CORFO budget for Start-Up Chile.
32% of startups, remained in-country to continue their operations. Those that were generating sales in Chile totaled
42.6 million USD, 26 million USD of which were generated in 2015. The accumulated sales were in excess of 276
million USD, 143 million of which were produced in 2015.
46% of the total portfolio declared to have generated employment, collectively creating 5,162 positions worldwide.
30% of jobs created were in Chile. Average salaries ranged between $1,216 to $2,280 USD monthly.
UPDATE: After the survey, according to the Servicios de Impuestos Internos (Internal Revenue Service), startups that
went through Strat-Up Chile, created more than 5,000 advanced human capitaljobs only in Chile.
STARTUPS IN CHILE
The initial objective of the program was to position the country as the most important innovation hub in Latin America.
To lead the way by attracting international entrepreneurs and transform local entrepreneurial culture to become
more global. Although, over the years, Start-Up Chile retained 34% of its startups, meaning that after
participation in the program they remained in-country to run their operations.