Essential information

Ongoing leadership
Sophisticated talent
Entrepreneural Enviroment
A Latin American hub

Overview

Chile’s venture capital industry has trebled in the past decade, reaching over US$1.300 million, and has financed more than 280 companies. Chile serves as an excellent laboratory for companies to test their business model before expanding to other countries in the region.

 

Chile’s attributes

Platform

Chile is an excellent gateway to Latin America, standing out for its model of openness to global markets and its broad network of double taxation treaties. This is borne out by the over 1,000 exporters of global services that have chosen Chile as a business platform.

Chile led the region in the Digital Readiness Index 2019 and is the country best prepared for the development of a digital economy, which is conducive to its aim of consolidating its position as a financial and global business hub.

Outlook

Chile’s investment fund industry has a dynamic outlook. In 2019, it comprised 462 funds, up by 20% on the previous year. Out of these, 66% focus on alternative assets (ACAFI 2019).

Chile leads the region on its environment for private equity and venture capital (LAVCA Scorecard 2018), with strengths that include its legal and regulatory framework, protection of intellectual property and transparency.

The country also stands as an example of digitization and financial inclusion: 97% of the adult population has access to some financial product (CMF 2019) and there are 84 Internet users per 100 inhabitants, out of whom 85% are mobile users (SUBTEL 2019).

The industry’s growth has been boosted by the Funds Law (LUF 2014) and the 2016 Productivity Law, under which alterative assets can account for up to 15% of the assets under management of pension funds, which total some US$200,000 million.

Entrepreneurship ecosystem and talent  

Chile’s entrepreneurship environment sets trends. Public support began in 2001 with nine start-ups; by 2019, there were over 2,000. Today, the country has over ten networks of mentors, 15 incubation programs and 25 co-working spaces around the country (CORFO 2019). Key initiatives include Start-Up Chile, a world-class state incubator (Forbes 2018).

The country has a workforce imbued with a culture of entrepreneurship and innovation, representing a pool of talent not only for the development of innovative companies but also for the installation of overseas companies, the recruitment of country managers, proffessionals for company builders or regional scouting.

Your local contact

Beatriz Herrera

Investment Promotion Executive

facts

OPPORTUNITIES

 Establish your operations in Chile and explore the following competitive advantages:

  • Investment in companies at the Series A and Series B funding stages
  • Different corporate venture capital (CVC) initiatives under development, with well-known multinationals already implementing projects in mature sectors of the Chilean economy such as the food, energy, construction and mining industries
  • Tax exemptions for funds that invest more than 80% of their portfolio overseas (income from a foreign source)
  • Opportunities for investment in financial technologies, due to the transition to the four-party scheme and future fintech regulation as well as public-private interest in cybersecurity
  • Capacity for innovation in agribusiness, energy, mining, construction and science-based enterprises, given Chile’s competitive advantages and solutions that can easily be replicated regionally
  • The opportunity to invest in a market that requires a smaller capital outlay (compared to the United States, Europe or Asia) and has high growth potential
  • A range of government programs and incentives for venture capital and entrepreneurship.

PARTNERS

Investor's Guide full version