The Accelerator Conundrum: 1Mby1M vs Other Latin American Accelerators

Gemini: Give me an overview of the startup accelerators in Latin America and how they compare with 1Mby1M.

Latin America’s startup ecosystem has been on a meteoric rise, attracting significant attention and investment. The region is now home to a growing number of unicorns and a vibrant landscape of accelerators, fostering innovation and connecting local talent with global opportunities.

Overview of Startup Accelerators in Latin America

Key Characteristics and Examples:

1. Emerging Hubs: While still developing, key cities have emerged as central to the region’s startup scene:
   • São Paulo, Brazil: The largest economy in Latin America, São Paulo is a major hub for FinTech, AgriTech, and SaaS. Examples include ACE Startups (Brazil’s largest), Plug and Play Brazil, and various corporate accelerators.
   • Mexico City, Mexico: A significant hub with a focus on FinTech, PropTech, and e-commerce. 500 Global LatAm (formerly 500 Startups LatAm) has a strong presence here, as does MassChallenge Mexico.
   • Santiago, Chile: Pioneering the government-backed accelerator model, Start-Up Chile is globally renowned.
   • Bogotá, Colombia: Growing rapidly, with Rockstart Colombia (a European accelerator with a strong presence) and local initiatives.
   • Buenos Aires, Argentina: Known for its strong engineering talent, with accelerators like NXTP Ventures.
2. Diverse Funding Models, with a Unique Government-Backed Approach:
   • Equity-for-Investment: Many private accelerators follow the standard model of providing seed funding in exchange for equity (e.g., 500 Global LatAm, NXTP Ventures, ACE Startups).
   • Government Grants (Non-Dilutive): This is a major differentiator for Latin America, largely thanks to Start-Up Chile. It provides significant equity-free grants (e.g., $20,000 to $100,000 USD) to attract and foster startups, influencing similar initiatives in other countries.
   • Corporate Accelerators: Large Latin American corporations and international firms often run accelerators to partner with startups in FinTech, logistics, energy, and retail.
   • Venture Builders/Studios: Some entities actively co-found and build companies.
3. Strong Focus on Local Market Needs & Specific Sectors: While some global trends are adopted, many accelerators focus on solutions tailored to the region’s unique challenges and opportunities.
   • FinTech: Addressing financial inclusion, digital payments, and lending gaps across the region is a huge focus.
   • AgriTech: Leveraging Latin America’s agricultural prowess.
   • Logistics & E-commerce: Optimizing supply chains and last-mile delivery for a rapidly growing online consumer base.
   • HealthTech: Improving access and quality of healthcare.
   • AI/ML: Increasingly integrated into various sector solutions.
4. Connecting to Global Ecosystems: Many programs act as bridges, helping Latin American founders scale regionally and globally, often with an eye towards the U.S. market.

How Latin American Accelerators Compare with 1Mby1M

1Mby1M’s model is quite distinct from the prevailing accelerator approaches in Latin America, offering a contrasting value proposition.

1. Equity vs. Non-Equity:

• 1Mby1M: Non-equity. Its core offering is subscription-based strategic guidance, allowing founders to retain 100% of their company’s equity.
• Latin American Accelerators (General):
  • Equity-taking is common: Most private accelerators like 500 Global LatAm, ACE Startups, and NXTP Ventures follow the typical model of providing seed capital ($20,000 – $150,000 USD range) in exchange for an equity stake (often 5-10%). Latitud Fellows also takes a small equity stake for their initial “Ideation Check” and offers follow-on investment.
  • Significant Non-Equity Options: Start-Up Chile is a prime example of a successful, large-scale non-equity model, providing grants. Similarly, Google for Startups Accelerator: Latino Founders offers equity-free support. MassChallenge Mexico also adheres to its “zero-cost, zero-equity” model. This makes Latin America a region with relatively more significant non-equity options than, for instance, Europe or North America (excluding specific university/government programs).

2. Virtual vs. Physical:

• 1Mby1M: Fully Virtual. This provides ultimate flexibility and accessibility for founders across Latin America without requiring relocation.
• Latin American Accelerators (General): A mixed approach.
  • Historically, many programs (like early Start-Up Chile batches or programs from 500 Global LatAm) encouraged or required a physical presence to foster intense cohort interaction and leverage local ecosystems.
  • However, with improved internet infrastructure and the impact of recent global events, hybrid and fully virtual models are becoming increasingly prevalent, allowing wider reach across the diverse geographical expanse of Latin America (e.g., Latitud Fellows‘ virtual program with a SF trip, Seedstars also offers virtual programs).

3. Exclusive vs. Inclusive:

• 1Mby1M: Generally Inclusive in its subscription-based structure, designed to be accessible to a wide range of entrepreneurs.
• Latin American Accelerators (General):
  • The most reputable and well-funded accelerators (500 Global LatAm, Start-Up Chile, Antler, Latitud Fellows) are highly exclusive, with very competitive application processes due to high demand.
  • Other community-focused or more specialized programs might be more inclusive for their initial stages.

4. Global vs. Local/Specific Category:

• 1Mby1M: Global. Its curriculum and network are applicable and accessible to entrepreneurs worldwide, including those in Latin America.
• Latin American Accelerators (General):
  • Many have a regional focus (e.g., 500 Global LatAm, Latitud Fellows for Latin American founders).
  • Some, like Start-Up Chile, are globally open to applicants but aim to use Chile as a platform for growth.
  • Others are strictly country-specific or focused on a particular city (e.g., ACE Startups in Brazil, Startup Mexico).

5. Sector Focus:

• 1Mby1M: Broad/Agnostic. Focuses on fundamental business building applicable to any tech-enabled startup.
• Latin American Accelerators (General): While many are broad/agnostic, there’s a strong trend towards sector specialization reflecting the region’s unique opportunities and challenges: FinTech, AgriTech, Logistics, EdTech, and solutions for the informal economy are common areas. Some also have a specific focus on AI/ML or deep tech.

6. Demo Day vs. No Demo Day:

• 1Mby1M: No formal Demo Day. Investor introductions are typically personalized and based on a company’s readiness for funding.
• Latin American Accelerators (General): Most structured, cohort-based accelerators (500 Global LatAm, Start-Up Chile, ACE Startups, NXTP Ventures) culminate in a Demo Day or Investor Day event to showcase their cohort to potential investors.

7. Long-Term Mentorship vs. Short-Term Sprint:

• 1Mby1M: Long-term mentorship/continuous engagement. It’s designed for sustained strategic guidance over a year-long (or longer) period.
• Latin American Accelerators (General): The majority of traditional accelerators are short-term, intensive sprints (typically 3-6 months), focusing on rapid growth and key milestones. While alumni support is often provided, the core acceleration phase is time-bound. Latitud Fellows has an intensive short residency but aims for a longer-term investment relationship.

8. Funding, Investor Introductions, or Just Education/Networking:

• 1Mby1M: Primarily Education and strategic consulting, combined with investor introductions when founders are ready. It does not provide direct funding.
• Latin American Accelerators (General):
  • Direct Funding (Equity-based) + Mentorship + Introductions: The common model for private accelerators (e.g., 500 Global LatAm, ACE Startups, NXTP Ventures, Latitud Fellows).
  • Non-Dilutive Grants + Mentorship + Introductions: A significant strength, particularly through Start-Up Chile and Google for Startups Accelerator.
  • Education + Networking + Community: Some platforms focus primarily on these aspects.
  • Corporate Partnerships: Many programs prioritize pilots and integration with large corporates.

In essence, Latin America’s accelerator landscape is characterized by its dynamic growth, increasing global integration, and a unique blend of traditional equity-for-investment models alongside influential government-backed, non-dilutive grant programs. 

1Mby1M offers a distinct alternative for Latin American founders who seek a virtual, equity-free, and long-term strategic guidance approach focused on building sustainable, revenue-generating businesses.

Both equity and non-equity programs in Latin America can easily be combined with 1Mby1M to gain access to the US / Silicon Valley ecosystem.

The level of expertise provided by 1Mby1M in building tech-enabled businesses is also off-the-charts superior to anything accessible through most local programs.

Photo Credit: Gerd Altmann from Pixabay

This segment is a part in the series : The Accelerator Conundrum