SCALE is a follow-on fund that offers 60 Million Chilean pesos to Chilean companies that need the extra capital to grow in Chile and expand to the rest of Latin America and the world. The money will be given through a co-financed grant in which Start-Up Chile will put up to CLP 60M, corresponding to 70% of the fund; the recipients of this grant must put up the remaining 30%.
For being eligible, the companies have to first pass through the Start-Up Chile Seed program, or other programs of the Entrepreneurship Division of CORFO, the Comite InnovaChile or the “Comité de Desarrollo Productivo Regional del Bío-Bío”, such as the ones specified in the following section. In addition, companies must be legally incorporated in Chile for no more than 6 years.
The application process will be announced internally and will be done through an online application form. Each company will be reviewed by a committee at CORFO (Entrepreneurship and Innovation agency of the government of Chile).
What are we looking for?
We will select companies with disruptive innovations that respond to unmet and incremental innovation, that prove greater value than other existing solutions in the market. These companies need to demonstrate significant traction, i.e. must have tested the solution and business model with clients and/or users, and have adjusted the product or service to a focused market. These companies must be generating sales and/or have raised private capital in the last year.
Every applicant will upload their application in an online form including information about the traction and scale of the company, work plan and expected results and the team.
Every applicant will have to upload a 3 minute video describing the team, traction and impact of the company and the work schedule.
In the form, the applicants should choose a Supporting Entity (Entidad de apoyo), which will help the company to:
- Get the necessary insurance for the grant,
- File the expenses for the grant to CORFO and,
- Guide them in order to accomplish the goals of the project, to scale and expand the business internationally.
This supporting entity can be chosen before the application and indicated in the form. IF not, the entity must be appointed by the applicant company before the signature of the grant contract.
The following is the list of potential Supporting Entities:
- Endeavor Chile (Patagonia & Atacama)
- 3IE – UTFSM (también es aceleradora)
Universidad Federico Santa María
- INCUBATEC UFRO (también es aceleradora)
Universidad de la Frontera
- ACELERADORA UDD VENTURES
UDD Ventures S.A.
- AUSTRAL INCUBA
Universidad Austral de Chile
- CORPORACION SANTIAGO INNOVA
Corporación Santiago Innova
Pontifica Universidad Católica de Valparaíso
- EMPRENDE FCH
- INCUBA UC
- INCUBADORA DE LA INDUSTRIA TIC
Incubadora de la Industria TIC S.A. (ImagineLab)
- INNOVO USACH
Universidad de Santiago de Chile
- INCUBADORA DE NEGOCIOS ELEVAGLOBAL
Incubadora de Negocios Elevaglobal SpA (Magical Startups)
How is the grant given to the selected company?
The companies selected will have to sign a contract with CORFO, where the grant will be delivered in two equal installments of 30.000.000.- CLP.
The first one will be given right after the contract is formalized and the insurance is approved. The second one will be given after The company will have to submit two financial and technical development reports after the first 6 months and after the 12 month period of the grant contract.
What we expect the Companies to accomplish?
We expect that the companies accomplish a minimal increase of 50% in sales or initial sales of at least 100.000.000.- Chilean pesos. Apart from this we expect them to accomplish at least one of the following goals:
- New private fundraising rounds,
- And the start or increase in exports to at least 2 different countries.
Accountability of the Companies
Every company will have to set a 4 month critical continuity milestone in the application form. This milestone will be set by the company during the application and revised by the CORFO Entrepreneurship committee, who can make observations and modify it, to ensure that the company is on the right track. If a company doesn’t approves the critical milestone, the contract with the beneficiary company, can be early terminated depending on the terms described in the T&C.
Also the company will have to set milestones for the 12 month project, also in the application form.
Every company will have to file reports after the 4th month for the critical continuity milestone, after the 6 month period and the 12 month period.
What are we giving the companies apart from the money?
During this period the company will have full access, to all the Start-Up Chile resources workspace, mentors, the investor club, perks, and many other benefits.
What are the company’s obligations with the program?
Every company selected must consider in their budget, expenses intended to finance activities for internationalization and exporting of goods and/or services; and also activities for the design and sophistication of the product or service and the creation of the brand strategy.
Also, every company selected will be required to develop a social impact activity. The Companies must mentor 1 TSF company, for a period of 3 months, in 6 consecutive sessions, and file reports for every meeting. Each company will be assign by Start-Up Chile.