Venture Capital - Chile

Chile

Highlights

Chile is expected to see Total Capital Raised in the Venture Capital market market reach US$447.20m by 2024.
In the same year, Later Stage is anticipated to dominate the market in Chile, with a projected market volume of US$329.10m.
When compared globally, the United States is set to generate the most Capital Raised, with a forecast of US$136.6bn in 2024.
Chile's Venture Capital market is burgeoning, with a notable increase in funding rounds and a growing interest from international investors.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Venture Capital market in Chile has been experiencing significant growth in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in Chile have played a crucial role in the development of the Venture Capital market.

Chilean entrepreneurs are increasingly seeking external funding to scale their businesses and pursue innovative ideas. This shift in mindset is driven by a growing awareness of the benefits that Venture Capital can bring, such as access to expertise, networks, and capital. Additionally, there is a rising demand for funding in sectors such as technology, renewable energy, and healthcare, which has further fueled the growth of the Venture Capital market in Chile.

Trends in the market have also contributed to its development. One notable trend is the increasing number of local and international Venture Capital firms setting up operations in Chile. These firms are attracted by the country's stable political and economic environment, as well as its growing entrepreneurial ecosystem.

This influx of Venture Capital players has not only provided entrepreneurs with more funding options but has also fostered a culture of innovation and collaboration. Another trend is the rise of corporate Venture Capital. Many large corporations in Chile are now establishing their own Venture Capital arms to invest in startups and disruptive technologies.

This trend is driven by the need for corporations to stay competitive and innovative in a rapidly changing business landscape. By investing in startups, corporations can gain access to new technologies, talent, and business models that can help them drive growth and transformation. Local special circumstances in Chile have also contributed to the development of the Venture Capital market.

The government has implemented various initiatives to support entrepreneurship and innovation, such as tax incentives for investors and the establishment of startup incubators and accelerators. These efforts have created a favorable environment for Venture Capital investment and have attracted both local and international investors. Underlying macroeconomic factors have also played a role in the growth of the Venture Capital market in Chile.

The country has experienced steady economic growth in recent years, which has provided a solid foundation for investment and entrepreneurship. Additionally, Chile's strong financial sector and well-developed capital markets have facilitated the flow of capital into the Venture Capital market. In conclusion, the Venture Capital market in Chile is developing rapidly due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

The increasing demand for funding, the presence of local and international Venture Capital firms, the rise of corporate Venture Capital, government support for entrepreneurship, and Chile's favorable macroeconomic environment have all contributed to the growth of the market. As a result, Chile is becoming an attractive destination for entrepreneurs and investors looking to tap into the country's thriving innovation ecosystem.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.