Fundraising and Startups in Chile Part 1

ChileChile, a secluded country that until recently was rarely a topic of discussion especially in the digital tech world, is now attracting a lot of global media attention for its efforts to modernize and become the regions tech hub.

I migrated to Chile to explore what opportunities this young but promising ecosystem had to offer. I reasoned that there are likely to be more opportunities for an entrepreneur in a startup ecosystem that is still in its infancy in a country that is off most people’s radar. This proved to be true. In 10 moths, I met an amazing technical co-founder and we founded Fundacity, raised $170,000, were sponsored by the government for a 5 week mentorship program in Silicon Valley, became a financial advisor to successful Argentine startup Taggify, co-organized one of the first Startup Weekends in Chile, co-organizing the first Junior World Entrepreneurship in Chile and this journey took me on business trips across 4 continents. This, for someone so new to this industry, would not have been possible anywhere else.

Chile’s most prominent initiative is undoubtedly Start-Up Chile. Start-Up Chile is indeed, in my opinion, a success story. $40k non-equity non-loan grants for 100 promising startups handpicked by Silicon Valley experts has attracted the attention of the global tech community and notable news reporters including CNN, Economist and Tech Crunch over the last 2 years. Applications to Start-Up Chile have surged from 300 applications to 1500 from 50+ countries over the past 2 years. The quality of the startups has also followed suit.

20120904-start-up-chile-logo

Support for Startup Chile is not unanimous. Critiques point out that an overwhelming majority leaves Chile after the 6-month program. Whilst this is true it ignores the impact these international innovators make when in Chile. Startup Chile requests that each of its incubatees earn “RVA Points” (Return Value Agenda) which is a mechanism for entrepreneurs to give back by spending time spreading their knowledge in the community through organizing events, workshops, presentations, hackathons and forming communities and groups. Start-Up Chile is artificially creating an ecosystem that is inspiring, enabling and educating Chileans about Start-Ups and bringing this concept closer to home. Chilean entrepreneur Diego Izquierdo, co-founder of Fundacity, told me,

We all thought a startup is only something you can do if you are in the USA.

Fact: this is not the case. Fact: more Chileans today than previously are launching startupsPart 2 to follow

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This entry was posted in Fundraising by Miklos Grof. Bookmark the permalink.

About Miklos Grof

Miklos is the CEO and co-founder of Fundacity. Fundacity is making startups investing easier. Fundacity already supports all the notable accelerators in LatAm in their startup selection and management and they are expanding rapidly across Asia-Pacific and Europe. With the recently launched Fundacity Investments Clubs it seeks to simplify the startup investing process in emerging markets and make it accessible to more people. Miklos has unique and extensive experience in start-up formation, business development and venture financing. He has raised and evaluated investment offers in venture capital from angels and VCs from three continents for a variety of deals. He thrives at launching businesses and making sales in new geographies. Miklos currently serves as a financial advisor and mentor for various start-ups including Taggify (an online contextual advertising company based in New York and Buenos Aires). At Taggify, Miklos advises on fundraising, financial reporting to the board of investors, tax filling and cash flow management. Miklos completed his MsC in Finance at the London School of Economics and previously worked in corporate finance at PricewaterhouseCoopers in London, fund sales at UniCredit Vienna and economic research at Erste Bank Budapest. He is a Chartered Accountant with the ICAEW, Institute of Chartered Accountant England and Whales and is quinti-lingual. He is passionate about startups and entrepreneurship and spends his free time engaging with the startup community.

One thought on “Fundraising and Startups in Chile Part 1

  1. Pingback: Fundraising and Startups in Chile Part 2 | Fundacity

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