Santiago, stable economy and impressive government action
Santiago can rely on a very stable economy that is concentrated among few wealthy families. Through Start-up Chile, the government has created one of the most influent acceleration program in the world. With 17 million inhabitants, Chile can count on a stable economy, mainly based on mineral extraction as well as real estate, which makes it the most developed country in South America, according to HDI ranking (0,895). Despite a dark part of history during the second part of the 20th century, it is also the less corrputed country in the area. Besides, its economy is very concentrated, only a few industrial families based in Santiago owe a large part of the GDP thanks to mineral extraction. Thus, when they started interesting themsleves in the city’s entrepreneurial ecosystem, even at a low share of their capital, funds were quickly available for Chilean start-ups. However, Santiago’s ecosystem owes its tremendous growth and worldwide fame to the government actions, especially thanks to Start-up Chile launched in 2010 by Corfo, Chilean agency for economic development. This public acceleration program hosts every year 250 start-ups from the whole world. The entity has gained such a notoriety in the region that having been accelerated at Start-up Chile is everyone’s goal as it provides legitimacy towards investors. We could nevertheless wonder about the dependence of the ecosystem towards this program. Will an entrepreneurial mindset make it sustainable on long term ?
Cumplo, revolution and flexibilisation of credit for SMEs
Cumplo links creditors with SMEs looking for loans. A company can find a loan in less than 24h where the process lasts several days in a classic bank. Cumplo is a crowdlending company that was created in 2011 in Santiago. After 6 years, the start-up has had an impressive growth, won many prizes and raised funds several times. They really created a new market in Chile : crowdlending. The idea is to enable small and medium companies to grant loans at a very interesting rate. Cumplo provides an online platform that matches SMEs wanting loans with investors willing to lend money. Anybody can ask for a loan or propose a loan and match. An impressive statistic is that any SME asking for a loan will find one within one day. Besides, it is attractive for investors as the payback rate is way higher than on any other platform. Since its creation, the start-up has funded more than USD 180 million in loans. The company has been through Start-up Chile and benefited from funds from Corfo national agency. It is nowadays a leader in Latin America and will probably soon target other big markets in the world.