Startup Latin America: Deep Dive Into Santiago’s Accelerator Ecosystem

The Accelerator Conundrum is a multipart series that challenges the prevailing wisdom of the tech startup ecosystem that entrepreneurs should Blitzscale out of the gate. Written by Sramana Mitra, the Founder and CEO of One Million by One Million (1Mby1M), the world’s first global virtual accelerator, it emphatically argues that a better strategy is to Bootstrap First, Raise Money Later, focus on customers, revenues and profits. 1Mby1M’s mission is to help a Million entrepreneurs reach a million dollars in annual revenue and beyond. Sramana’s Digital Mind AI Mentor virtually mentors entrepreneurs around the world in 57 languages. Try it out!

Santiago, as the undisputed epicenter of the Chilean startup scene, has achieved global recognition largely due to a single, transformative government initiative. It is a hub of innovation with a strong pro-business environment and a highly educated talent pool. The city is a leader in fintech, foodtech, and cleantech, home to nearly 91% of all startups in the country.

However, its success is a perfect illustration of the “Blitzscale from the get-go” philosophy, which I’ve deconstructed in my The Accelerator Conundrum blog series.

This model, which pressures founders to prioritize speed and raising massive rounds of capital, is a dangerous game. It’s built on the faulty assumptions that capital is always available and that profitability can be deferred. For a startup in Santiago, this approach is particularly risky. It leads to a glut of cash-burning companies that are unable to survive without continuous infusions of external capital. The result is often diluted equity and a high rate of failure.

The only viable and proven path is to “Bootstrap first, raise money later.” This is the core of my methodology. It is a philosophy that empowers you to build a resilient business with customer revenue, not investor money. You achieve profitability, prove your model, and only then, from a position of strength, do you consider raising capital. This approach builds a resilient company that is immune to the whims of the funding market. You are in control. When you do raise capital, it is from a position of strength and strategic necessity, not desperation. This is the path to building a truly great, resilient company.

A Comparative Analysis of Santiago’s Accelerators

For entrepreneurs in Santiago, 1Mby1M global virtual accelerator is not just an alternative to local accelerators; it’s a necessary antidote to the flawed philosophies they promote. Here’s a comparative look at some of the key players in the city.

Start-Up Chile

Start-Up Chile is a government-funded accelerator that has been a magnet for entrepreneurs from all over the world. Its model offers seed capital in the form of a grant (typically no equity is taken) and a six-month program that provides mentorship and networking opportunities. The value proposition is clear: free money and access to a diverse, global cohort. However, the model has significant flaws. The program is a fixed-term, high-pressure sprint that culminates in a demo day. It’s designed to get companies to a pitchable state, not necessarily to profitability. This approach is a classic example of the “Accelerator Conundrum” at work. Startups are encouraged to focus on raising the next round rather than building a sustainable business. The short-term, high-impact nature of the program often leaves founders ill-equipped for the long, hard road of building a company. In contrast, 1Mby1M is a non-equity-taking model that provides continuous, on-demand support over a long-term period, focused on building a profitable, resilient company.

Imagine Lab

Imagine Lab is another accelerator with a strong presence in Santiago, often operating in partnership with major corporations. Its model involves providing mentorship and resources in exchange for equity. While these partnerships can be valuable for certain types of startups, they often come with limitations. The programs are fixed-term and are often designed to support the strategic interests of the corporate partner, which can restrict a startup’s growth and market reach. For a founder, giving up equity for a short-term, fixed-term program is often a poor transaction. 1Mby1M, on the other hand, is completely founder-centric and industry-agnostic. Our guidance is always focused on what is best for the founder’s business, not on the strategic interests of a corporate partner.

Parallel 18

While technically a program in Puerto Rico, Parallel 18 is often compared to Start-Up Chile due to its similar government-backed, equity-free grant model. Its primary value proposition is to attract global talent and accelerate them in a local environment. Like Start-Up Chile, it is a fixed-term, high-pressure program that focuses on a short-term sprint to a demo day. The program’s success is often measured by the number of startups it “graduates” and the amount of funding they raise, rather than their long-term sustainability or profitability. This focus on vanity metrics is a dangerous trap for founders. 1Mby1M’s Digital Mind AI Mentor, which can mentor in Spanish and provides private, 24/7 strategic guidance, offers a far superior and more sustainable alternative. We teach founders how to build a real business from the ground up, not just how to network or raise money.

Comparison Table

Photo Credit: Simon from Pixabay

This segment is a part in the series : Startup Latin America