Chile’s Startup Surge Stalls as Regional Rivals Gain Ground

Fifteen years ago, Chile set a new standard for innovation in Latin America by launching Start-Up Chile, the world’s first government-backed accelerator for startups.

This initiative drew more than 2,000 startups from over 85 countries and helped create billion-dollar companies. Santiago quickly became the country’s innovation hub, attracting entrepreneurs and investors from around the world.

Today, Chile’s early lead is slipping. According to the 2025 StartupBlink index, Chile ranks 37th among global startup ecosystems. Santiago stands at 75th among world cities, but other Chilean cities lag far behind, with Valparaíso at 882nd and Concepción at 1,282nd.

This imbalance highlights how most innovation and investment remain concentrated in the capital, leaving other regions with fewer opportunities. Chile’s economy grew by 2.6% in 2024, supported by strong copper and lithium exports.

Inflation dropped to 3.8% by the end of 2024, close to the central bank’s 3% target. However, growth is expected to slow in 2025, and inflation remains a challenge for businesses and consumers.

Start-Up Chile has enabled local startups to generate over two billion US dollars in sales. Most government support, however, still targets early-stage companies. Few programs help startups scale up or reach international markets.

Only six companies have joined ScaleX, a new platform designed for late-stage startups seeking broader capital. President Gabriel Boric’s administration recently announced the Startup Campus, an $11 million project in Santiago.

The goal is to support 200 high-growth startups over five years and foster more cooperation between public and private sectors. Officials hope this will help regions outside Santiago catch up and reduce the economy’s reliance on natural resources.

Chile’s experience shows that government action can ignite innovation, but sustaining momentum is harder. Without increased investment in scaling companies and more support for regions beyond the capital, Chile risks falling further behind neighbors like Brazil and Colombia.

The country now faces a critical decision: invest more to spread opportunity and maintain its leadership, or watch its early gains fade.