Don’t do it: The most common mistakes when applying to Start-Up Chile

You’ve probably been encouraged to read this because you would like to apply to one of our programs. Congratulations, you’re on the right track. Why? Because most projects that apply to Start-Up Chile often leave out information or don’t take the time to apply calmly, thus receiving low scores and ending up far from being selected for our generations. But there’s no need to despair; perhaps by following these recommendations, you can avoid being one of them.

Hello, how are you? I’m Michelle Babbitt, Scouting Manager at Start-Up Chile, responsible for the selection process of startups entering Start-Up Chile. Below, I will tell you about some common mistakes we see in applications to our programs.

At Start-Up Chile, we select innovative, scalable, technology-based projects that aim to solve global problems.

Today, most projects/businesses use some form of technology, but for Start-Up Chile, this means there should be an interesting technological development behind the project, as well as a significant innovative component.

Over the years, I have evaluated hundreds of projects, not only for Start-Up Chile but also for other institutions, and most errors tend to follow a defined pattern. Before delving into those errors, the first thing you should ask yourself as an applicant, before investing many hours and pouring your hopes in an application, is whether you fit with any of the programs.

Am I suitable for this program?

To find out if you fit, you should verify that the program you want to apply to is in tune with your project and vice versa.

Why do I mention this? Well, because about a quarter of the applying startups are declared inadmissible and do not progress in the process simply because they are not compatible with the program they are applying to. Fit in this context can range from the project’s eligibility level —such as whether your business involves hardware construction or IT consulting— to the applicant’s eligibility level, such as not being 18 years old. It can also happen that your project is very good but does not align with the program’s objectives. This often occurs with production-focused projects or those that are too far from having a functional minimum viable product.

The best way to understand the requirements of our program is to read both the technical and administrative guidelines. Additionally, you can attend webinars to learn about the types of projects we have supported in the past.

Common mistakes:

1.Lack of clarity: When presenting your idea, make sure it is crystal clear. Describe the problem you are addressing clearly and in detail, and demonstrate how your startup offers a technology-based and differentiated solution. Avoid being vague or generic, and use all the space we give you to write. 

2. Low or no market validation: One of the best ways to support your proposal is to demonstrate that there is a real market for your product or service. Share data on the demand to solve the identified problem and data on the interest in your approach to the problem. Any early validation you have obtained should be included. This demonstrates that you have done the necessary research and that your idea has potential for success. Also, share data and metrics that support the validation. Keep in mind that relevant metrics will vary depending on the stage, but they may include: waiting lists, users, pilots, sales, churn, customer acquisition cost, among others. However, be wary of vanity metrics that do not contribute to your application and end up detracting from its seriousness, such as including how many Instagram followers you have.

A common issue among those applying to Build is insufficient validation. For that program, we require at least a validated idea, meaning you have evidence that the market may have interest in your solution. This can be seen through interviews with potential clients or key players in your industry, waiting lists, and commitments to pilot, among others. We are an acceleration program, so if the project is a year away from having a minimum viable product that can be tested with real clients, we won’t be able to support you in the way you need. Perhaps it would be better to look for a program focused on R&D and then reapply when you are closer to having a functional minimum viable product.

3.Weak team and/or networks: Your team is one of the most important assets of your startup. Make sure to highlight the skills and experience of each team member and how they complement each other to make the project a success. In Build, it’s important to highlight the potential of both the Team Leader and the team, or if there is no team and you are a solo founder, highlight your networks and/or mentors. In Ignite and Growth, the team must be capable of carrying out the project both technically with product development and commercially.

4.Lack of commitment or fit with Chile: Demonstrate your commitment to Chile and its entrepreneurial ecosystem. Explain why you have chosen to apply to Start-Up Chile and how you plan to develop a business in Chile. Your application will be stronger if you demonstrate that you have researched the relevant market and have identified potential clients. If you already have clients or a team in Chile, mention them.

5.Weak growth plan: Start-Up Chile looks for startups with global growth potential. Emphasize how you plan to expand in Chile and reach new international markets if you are already at that stage. Evaluators want to see that you have an ambitious vision and that you are ready to take your startup to the next level. Support your plan with data and research, naming potential clients, for example. This item is particularly important for startups in Growth

6.Thinking that presenting the minimum is enough: Start-Up Chile has highly competitive programs. Therefore, simply meeting all the basic requirements does not guarantee that you will be selected. The more robust your application, the better. We also recommend paying special attention to differentiation, validation, and team aspects.

In summary, by avoiding these common mistakes and presenting a solid and well-thought-out application, you will increase your chances of being selected for the Start-Up Chile program. Good luck!