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 August 2017 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 89% of our portfolio. Those surveyed were participants across all of Start-Up Chile programs, TSF, Seed and Scale. Of the 89% of responses, 22% reported formal valuations and overall the findings demonstrated the positive effect of Start-Up Chile.
54.5% of startups accelerated by the program, reported they were still active in 2017. Studies are limited measuring
survival rates, however Start-Up Chile consistently proves to be on par with other prominent accelerators.
Of the 54.5% of surviving startups, 59,9% 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.
22% of startups reported formal valuations to the amount of 1,427 million USD, meaning they were validated by the market.
Startups have collectively raised 997 million USD in capital, 46% of which came from public funds and 54% from private sources. The total raised capital is 18,3 times CORFO´s investment for Start-Up Chile.
*The Global numbers include the capital raised in Chile.
The accumulated sales worldwide were in excess of 691 million USD, 342 million of which were produced in the last 12 months.
56,4% of startups, remained in-country to continue their operations. Those that were generating sales in Chile totaled 140 million USD, 63 million USD of which was generated in the last 12 months.
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. 56,4% of the active startups of our portfolio still have operations in Chile, from which 50,4% are foreign startups and 49,6% are Chileans.