CHILE UPDATES #24
Chile's Lesser Known Start-Up Funds
-Just a few years ago, Jorge Riquelme, worked as a real estate agent in Santiago's metropolitan area. Eventually, he grew tired of the trade (being an agent in Chile's relatively undeveloped property market isn't for the faint of heart) and decided to see if he could make a living working independently.
He'd always had a knack for growing things and after carefully analyzing the market, he thought there was potential in the cut flower industry. His business plan wasn't groundbreaking but he was able to secure backing from a governmental organization known as CORFO and in short order started constructing greenhouses and developing a strategy for taking over local market share.
-Claudio Rabuco lives in southern Chile and has been facinated by the region's diverse flora ever since he was a child. A number of years ago he started doing research on indigenous plant species found in the area and was particularly impressed by the maqui berry. He decided to form MNL Inc and applied for a grant from CORFO in order see where his research might take him.
His proposal was eventually approved, and after discovering that the maqui berry helps with insulin regulation, MNL Inc set up a partnership with one of southern Chile's universities and Las Vertientes LLC. Today they are involved with the production and processing of maqui extract in Chile and distribute to a number of foreign markets.
I'm always amazed by the number of people I meet here in Chile (foreigners as well as locals) who have never heard of the various business assistance programs and start up funds that are available for entrepreneurs in this country.
Start Up Chile has become fairly well known in recently years (and in turn quite competitive) but programs like Sercotec and CORFO are still relatively off the radar.
Each of these organizations help individuals and new businesses get their projects off the ground by providing seed capital, co-signing for business loans, and helping get new ideas patented.
Sercotec offers seed capital matching funds with a ratio as high as 80%/20% and a maximum contribution of about $11,000 USD on their end (meaning if you were to contribute $2,200 USD to your new company, Sercotec would put in as much as $11,000 USD). They also offer free accounting, business development, and entrepreneurial courses.
CORFO, the Corporation for Industrial Development, offers seed capital matching funds for slightly larger businesses with a ratio as high as 75%/25% and a maximim of about $45,000 USD on their end (meaning you would have to contribute about $11,400 USD to your new company to receive their full $45,000 USD).
CORFO's seed capital funds are specifically designated for companies with high grow potential (20% or more annually) and can be used for a wide range of projects relating to energy, agriculture, mining, and manufacturing.
You don't have to be a Chilean citizen to qualify for one of their grants or other services, however, you do need to have residency in the country. Already having a company formed here can be helpful but isn't required.
This was one of the things that really stood out to me when I first started trying to internationalize my assets and my life. There are plenty of nations around the world that will give you residency if you are willing to spend enough time or invest enough capital there but there aren't many that invite you into their country and then offer you several thousands of dollars if you can come up with a promising business idea.
The local economy here in Chile has slowed down over the last few years but is much healthier than it is in most of North America and Europe and there are plenty of niche markets here that are still largely untapped.
The application period for CORFO's next round of seed capital starts on Tuesday (July 22) at 3:00 PM CLT and will be open until the 12th of August. The ratio of grants to applicants for CORFO’s seed capital funds is much higher than it is for Start Up Chile right now but probably won’t always be this way.
If you’ve been considering trying diversify your assets, establish a foothold in an emerging economy, and would like to try your hand at being an entrepreneur, getting involved with CORFO and Sercotec’s various programs is an absolute no-brainer.
He'd always had a knack for growing things and after carefully analyzing the market, he thought there was potential in the cut flower industry. His business plan wasn't groundbreaking but he was able to secure backing from a governmental organization known as CORFO and in short order started constructing greenhouses and developing a strategy for taking over local market share.
-Claudio Rabuco lives in southern Chile and has been facinated by the region's diverse flora ever since he was a child. A number of years ago he started doing research on indigenous plant species found in the area and was particularly impressed by the maqui berry. He decided to form MNL Inc and applied for a grant from CORFO in order see where his research might take him.
His proposal was eventually approved, and after discovering that the maqui berry helps with insulin regulation, MNL Inc set up a partnership with one of southern Chile's universities and Las Vertientes LLC. Today they are involved with the production and processing of maqui extract in Chile and distribute to a number of foreign markets.
I'm always amazed by the number of people I meet here in Chile (foreigners as well as locals) who have never heard of the various business assistance programs and start up funds that are available for entrepreneurs in this country.
Start Up Chile has become fairly well known in recently years (and in turn quite competitive) but programs like Sercotec and CORFO are still relatively off the radar.
Each of these organizations help individuals and new businesses get their projects off the ground by providing seed capital, co-signing for business loans, and helping get new ideas patented.
Sercotec offers seed capital matching funds with a ratio as high as 80%/20% and a maximum contribution of about $11,000 USD on their end (meaning if you were to contribute $2,200 USD to your new company, Sercotec would put in as much as $11,000 USD). They also offer free accounting, business development, and entrepreneurial courses.
CORFO, the Corporation for Industrial Development, offers seed capital matching funds for slightly larger businesses with a ratio as high as 75%/25% and a maximim of about $45,000 USD on their end (meaning you would have to contribute about $11,400 USD to your new company to receive their full $45,000 USD).
CORFO's seed capital funds are specifically designated for companies with high grow potential (20% or more annually) and can be used for a wide range of projects relating to energy, agriculture, mining, and manufacturing.
You don't have to be a Chilean citizen to qualify for one of their grants or other services, however, you do need to have residency in the country. Already having a company formed here can be helpful but isn't required.
This was one of the things that really stood out to me when I first started trying to internationalize my assets and my life. There are plenty of nations around the world that will give you residency if you are willing to spend enough time or invest enough capital there but there aren't many that invite you into their country and then offer you several thousands of dollars if you can come up with a promising business idea.
The local economy here in Chile has slowed down over the last few years but is much healthier than it is in most of North America and Europe and there are plenty of niche markets here that are still largely untapped.
The application period for CORFO's next round of seed capital starts on Tuesday (July 22) at 3:00 PM CLT and will be open until the 12th of August. The ratio of grants to applicants for CORFO’s seed capital funds is much higher than it is for Start Up Chile right now but probably won’t always be this way.
If you’ve been considering trying diversify your assets, establish a foothold in an emerging economy, and would like to try your hand at being an entrepreneur, getting involved with CORFO and Sercotec’s various programs is an absolute no-brainer.