Santiago, the capital city of Chile, stands out as a vibrant hub within Latin America’s startup ecosystem. Over the past decade, it has cultivated a thriving environment for innovation and entrepreneurship.
Santiago’s startup scene benefits from a supportive infrastructure, a robust talent pool, and an increasing influx of international investment, positioning it as a leading startup ecosystem in the region.
Santiago’s startup ecosystem has emerged as one of the most dynamic in Latin America. Historically, the city’s entrepreneurial spirit has been fueled by a combination of economic stability, strong governmental support, and a growing network of investors.
Santiago is frequently ranked among the top cities in Latin America for startups due to its favorable business climate, strategic location, and thriving innovation culture.
Types of industries
The startup ecosystem in Santiago is diverse, with a strong emphasis on technology, fintech, and e-commerce. Additionally, there is significant activity in sectors like biotechnology, clean energy, and agritech.
This diversification reflects the city’s adaptability and its focus on leveraging local strengths and addressing global trends.
Key metrics
- Total funding raised: In recent years, Santiago-based startups have attracted significant venture capital. In 2023 alone, startups in Santiago raised approximately $250 million in funding, a notable increase from previous years.
- Number of active startups: Santiago is home to over 1,500 active startups, spanning various industries and stages of development.
- Size of the talent pool: The city boasts a well-educated talent pool, with thousands of graduates annually from top universities and technical institutions.
- Notable exits: Several startups have made successful exits, including high-profile acquisitions and IPOs, underscoring the ecosystem’s growth and maturity.
- Growth rate: The startup ecosystem in Santiago has experienced a compound annual growth rate (CAGR) of around 15% over the past five years, reflecting its increasing importance and vibrancy.
Key players
Leading startups
- NotCo: Focused on food technology, NotCo uses artificial intelligence to create plant-based food products that mimic animal-derived foods. It has received international acclaim and significant investment, highlighting Santiago’s strength in tech-driven food innovation.
- Cornershop: A prominent player in the on-demand grocery delivery sector, Cornershop was acquired by Uber in 2020. This success story illustrates Santiago’s capacity to generate high-impact, scalable startups.
Case studies
- NotCo: Launched in 2015, NotCo has rapidly scaled its operations, expanding its product line and market reach. The company’s innovative use of AI to develop plant-based food products has set a new standard in the food tech industry.
- Cornershop: Founded in 2015, Cornershop transformed grocery shopping with its efficient delivery model. Its acquisition by Uber not only validated its business model but also positioned Santiago as a key player in the global tech landscape.
Investors and venture capital firms
- All VP: One of Chile’s leading venture capital firms, All VP focuses on early-stage investments in tech and innovative startups. The firm’s involvement in Santiago’s ecosystem has been pivotal in fostering growth and providing critical funding.
- Mountain Nazca: This firm specializes in investing in high-growth startups across Latin America. Its presence in Santiago underscores the city’s attractiveness to regional and global investors.
Accelerators and incubators
- Start-Up Chile: A government-backed accelerator that supports early-stage startups with funding, mentorship, and networking opportunities. It has been instrumental in attracting international entrepreneurs to Santiago.
- ChileGlobal Ventures: This incubator focuses on scaling startups by providing access to capital, strategic guidance, and international networks. Its success stories include several high-growth companies that have gained prominence in both local and global markets.
Supporting infrastructure
Coworking spaces
- WeWork: With multiple locations in Santiago, WeWork provides flexible coworking spaces that foster collaboration among startups. Its facilities support networking and innovation through community events and shared workspaces.
- Spaces: Another major player in Santiago’s coworking scene, Spaces offers a creative environment for entrepreneurs and startups, helping to facilitate connections and enhance productivity.
Educational institutions and research centers
- Universidad de Chile: One of the country’s oldest and most prestigious universities, Universidad de Chile contributes to the talent pool by providing top-notch education in engineering, business, and technology.
- Centro de Innovación UC Anacleto Angelini: An innovation center affiliated with Pontificia Universidad Católica de Chile, it supports startups through research, development, and collaboration with industry experts.
Government initiatives and policies
- Startup Chile: This initiative offers funding and support to early-stage startups, aiming to boost Santiago’s position as a global startup hub. The program includes equity-free grants, mentorship, and access to a broad network of investors and entrepreneurs.
- ChileCompra: A government platform that facilitates access to public procurement opportunities, providing startups with opportunities to engage in government contracts and expand their market reach.
Market & talent
Market overview
Santiago’s market is characterized by a growing consumer base, increasing digital adoption, and a favorable business environment. The city’s strategic location in Latin America provides access to a regional market with over 600 million people, making it an attractive destination for startups looking to expand.
Local talent pool
- Recruitment trends: Santiago’s talent pool is diverse and highly skilled, with a strong emphasis on technology, business, and design. Recruitment trends indicate a high demand for tech talent, reflecting the city’s focus on innovation and digital transformation.
- Cultural factors: Santiago’s entrepreneurial culture is marked by a willingness to embrace risk and a collaborative mindset. The city’s work-life balance, influenced by its Mediterranean climate and active lifestyle, also contributes to a dynamic and productive work environment.
Entrepreneurial mindset
- Mindset: Santiago’s entrepreneurs are known for their resilience and adaptability. The startup community is characterized by a strong drive for innovation and a willingness to experiment with new business models.
- Work-life balance: The city’s lifestyle promotes a healthy work-life balance, which is reflected in the entrepreneurial culture. This balance supports creativity and sustained motivation among startup founders and teams.
Key events & networks
Major conferences and meetups
- Chilecon: An annual conference that brings together entrepreneurs, investors, and industry leaders to discuss trends, share knowledge, and network. It is a key event for showcasing Santiago’s startup ecosystem.
- Startup Week Santiago: A week-long series of events, including workshops, pitch sessions, and networking opportunities, designed to support and promote local startups.
Industry networks and communities
- Chileno Network: A prominent network of entrepreneurs and investors in Santiago, providing a platform for collaboration and knowledge exchange.
- Startup Chile Community: An active community of entrepreneurs who have participated in the Startup Chile program. It offers ongoing support, networking opportunities, and a platform for sharing experiences and advice.
Success stories
Notable exits and IPOs
- Cornershop: The acquisition by Uber in 2020 was a landmark event for Santiago’s startup ecosystem, demonstrating the city’s ability to produce successful, scalable startups.
- NotCo: With its innovative approach to food technology, NotCo has achieved significant milestones and attracted international investment, highlighting Santiago’s growing prominence in the global startup landscape.
In-depth case studies
- NotCo: The company’s growth trajectory, from its early days to becoming a global player in food tech, showcases Santiago’s ability to nurture high-impact startups. Key takeaways include the importance of leveraging technology and understanding market needs.
- Cornershop: The success story of Cornershop illustrates the potential for Santiago-based startups to achieve significant scale and recognition. The company’s focus on efficient delivery and customer satisfaction set a benchmark for others in the industry.
Challenges & opportunities
Common challenges
- Funding access: Despite significant investment, some startups face challenges in securing early-stage funding. Strategies to address this include seeking out alternative funding sources and building strong investor relationships.
- Regulatory environment: Navigating Chile’s regulatory landscape can be complex for startups. Entrepreneurs often need to invest time in understanding local regulations and compliance requirements.
Emerging trends and opportunities
- Tech innovation: There is a growing focus on AI, blockchain, and sustainability within Santiago’s startup ecosystem. These sectors present opportunities for new ventures and innovation.
- Market potential: Santiago’s expanding digital economy and increasing consumer demand offer significant opportunities for startups in e-commerce, fintech, and technology.
Santiago’s startup ecosystem continues to evolve, driven by a combination of strong local talent, supportive infrastructure, and increasing global investment. The city’s ability to foster innovation and growth positions it as a leading hub for startups in Latin America, with a promising future ahead.