Start-Up Chile-A Public Accelerator Program Seeding the Latin American Entrepreneurial Ecosystem
| Case Code: LDEN177 Case Length: 22 Pages Period: 2015-2021 Pub Date: 2022 Teaching Note: Available |
Price: Rs.400 Organization : Start-Up Chile Industry : Government & Non-Profit Organisations Countries : Chile Themes: Entrepreneurship, Public Policy , Government & Economy, Venture Capital |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Early Phase
Based on the recommendations of the OECD report, CORFO initiated the Venture Capital for Emerging Companies and Direct Investment Program in Investment Funds in 2008. In 2010, it decided to redesign the programs so that they could contribute to the creation of an entrepreneurial ecosystem in Chile..
Broaden the Scope of the Program
CORFO found the SUC model an ideal vehicle to trigger a snowball effect in Santiago’s startup ecosystem. SUC offered a fixed-term cohort-based program where each cohort consisted of competitively selected participants who were offered shared office space and equity-free seed capital. In addition, the program offered entrepreneurship schooling to a select few of the best performing participants. The program also offered guidance and accountability, as well as networking opportunities...
Programs offeredacross Start-Up Stages
SUC not only encouraged diversity among participants but also offered a host of diverse programs that together brought over 250 businesses into Chile every year. These programs catered to start-ups across the different phases of growth including pre-seed, seed stage, and early or growth stage. The programs were held at different times of the year and participants in one program could not apply for another program or reapply for the same program anytime in the future..
Seed
SUC offered another acceleration program for companies with a functional product and early validation. The start-up idea had to be in its early stage of development and less than 36 months old. The program accommodated early stage entrepreneurs. This was the most popular program offered and focused on connecting businesses in Chile with those in the rest of Latin America with over 100 participants each year. The duration of this program was six months. Participants had the option to extend the duration only once for up to one additional month..
Scale
The Chilean government found that the biggest challenge was holding on to the startups graduating from the Seed program in Santiago since 80% left after taking part in the six-month program..
Huella
The acceleration program was the latest addition by SUC in 2018 and offered support to for-profit, impact-driven startups that used technology to exclusively focus on projects with an economic, social, and environmental impact..
Growth
SUC launched the Growth accelerator in 2020 where selected firms could undertake a 12-month acceleration program that aimed to help more mature startups in Chile open up in other markets and scale exponentially. SUC would provide eight months of support to companies with sales of between USD80 million and USD800 million..
Suc’s Impact on the Entrepreneurial Ecosystem
SUC had a first-mover advantage in the public accelerator space whereby it had built its program from the ground up and tailored it to its government and state structures with a clear purpose and vision. It had been able to make a profound impact through its efforts over nearly a decade..
Next Steps
According to a 2019 report by Global Entrepreneurship Monitor (GEM), a growing number of non-entrepreneurs in Chile were considering founding their own start-up in the near future. The International Development Bank reported that despite Chile having one of the smallest populations in the region, it had the highest start-up penetration per capita..
Exhibits
Exhibit I: Select List of Firms with Successful Exits
Exhibit II: Government Initiatives for Venture Investments before SUC
Exhibit III: Visa Tech Facility to Foreign SUCParticipants
Exhibit IV: Support Network
Exhibit V: Sponsors Associated with SUC
Exhibit VI: TSF Gen 10 List of Start-ups
Exhibit VII: Huella– Second Cohort
Exhibit VIII: SUC Start-ups by Region
Exhibit IX: Founders Lab and Highway Program
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