Almost three decades ago, Chile began to write a unique story around the venture capital industry, which today is consolidated as a strategic component in the development of the entrepreneurship ecosystem. In this context, Endeavor Chile, one of the key articulators of high-impact entrepreneurship in the country, with the support of DLA Piper presented “The path of venture capital in Chile”, an x-ray prepared to map the different mechanisms available in the territory.
As stated in the document, the Venture Capital (VC) industry began to take shape in the 1990s due to legal modifications and incentive programs originated by CORFO. This process laid the foundations for the creation of a more concise ecosystem with international projection.
Endeavor Research divides the history of venture capital in Chile into two major cycles. The first, between 1997 and 2010, was characterized by the genesis and exploration of a nascent ecosystem. During this period, most funds operated as private equity vehicles, investing in traditional low-risk businesses.
The second cycle, which spans from 2010 to the present, marks the takeoff of the sector. Initiatives such as the creation of Start-Up Chile and the appearance of new public policies favored greater openness towards innovation. “This stage is distinguished by a more sophisticated and diverse wave of venture capital funds, whose results and solidity will be measured in the next five to ten years,” projects Andrés Alvarado, director of Endeavor Research.
Liquidity events
The study also addresses the importance of liquidity events as an indicator of ecosystem success. Although over the last five years, the number of exits in Latin America has fallen by 30%, Chilean entrepreneurs have demonstrated resilience and strategic vision, such as acquiring other startups or even choosing to remain private.
An emblematic example of the exit of the national ecosystem occurred in 2021, when Uber acquired Corneshop for US$3 billion, positioning its sale four years later among the twenty most valuable companies in the country. “Between 2021 and 2025, around 30% of exits came from acquisitions made by other local startups, while prior to 2020, this phenomenon was practically non-existent,” explains the executive.
Finally, Patricio Rojas, executive director of Endeavor Chile, stated that this research confirms that Chile has a venture capital industry that is evolving positively. Now, the challenge lies in consolidating what has been learned, opening new doors and continuing to build an inclusive, dynamic and sustainable ecosystem.
