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Chile may not be the first place that comes to mind when you visualize a bustling startup scene, but that’s exactly why Chilecon Valley, as it’s become known, is a high tech hub to watch.
In 2010, the Chilean government encouraged the local startup scene with the launch of a publicly funded accelerator, Start-Up Chile. This announcement, alongside increased funding and updated labor policies has made Chile a top innovation destination.
Today, much of the new technology coming out of Chile is created with the local community in mind. Here we highlight Chilean startups using an entrepreneurial approach to tackle the issues of access to water, food and education.
First Things First – Why Chile?
The Chilean government invests $15 million per year in the local entrepreneurial community, and as a result is committed to the success of companies coming from the area.
Beyond funding, the government has taken additional steps to make the location appealing for startups such as a lenient immigration policy, a one-year startup visa and an equity-free funding model. The Chilean startup scene is also enjoying the recent trend of global investors venturing to Latin America.
But alongside a growing entrepreneurial ecosystem, Chile is still an emerging nation. This environment eager for technological innovation is fertile ground for startups to develop and test products on a large scale.
Solving the Water Crisis
From floods to economic implications of privatized water, Chileans are living through an ongoing water crisis. Millions of people suffer on a daily basis from lack of access to running water, even in the capital of Santiago.
Experts believe that by 2070, water availability will fall by more than 40%, creating a dire humanitarian crisis in the area. This bleak outlook has stirred startups into action in an effort to turn the situation around.
Experts believe that by 2070, water availability in Chile will fall by more than 40%. - The Guardian Click To TweetTOHL (Tubing Operations for Humanitarian Logistics) is one startup stepping up to the challenge by engineering affordable water access solutions for local communities. The company received $40,000 in funding from Start-Up Chile to move their research from Atlanta to Chile. Since then they have been leveraging their technology to simplify water access for local Chilean communities.
Chilean startup FreshWater Solutions turned to fresh air as the solution to local water shortage by building a drinking fountain that extracts and filters moisture from the air into drinkable water. The idea came from technology used on submarines to produce and store potable water. FreshWater fountains have been installed in the dry areas of north Chile, and the goal is for future iterations to be small — down to the size of a backpack — and affordable.
Combatting Food Monopoly in Chile
While some startups have turned their eyes to the water crisis, other startups have made it their goal to revolutionize the food industry of Chile, specifically pertaining to the monopoly supermarket chains have in the area.
Algramo has made it their goal to reduce the price of food and increase accessibility to food in poor areas of Chile. The startup offers the same produce as the supermarket chains, but sells them in inexpensive and reusable packaging from vending machines in poor communities.
Beyond reducing the cost of the products, Algramo encourages sustainable practices by offering financial incentives for recycling, and nurtures foot traffic in local stores by placing vending machines outside traditional supermarkets.
Improving Education in Chile
While Chile invests heavily in innovation, the country allocates fewer resources to education, making it a great place for startups looking to make a difference in the next generation.
Portal Educativo tackles the issue of literacy with an online educational program. More than three million people access the site each month and many schools throughout the country have developed partnership programs with Portal Educativo in order to strengthen struggling students outside the classroom walls.
Edoome, another Chile-based education startup, is focused on improving communication between teachers and students by creating a digital classroom environment.
Kidint, one of the latest education startups to join Start-Up Chile, aims to become the literary answer to Netflix, offering books in mobile and digital versions for kids.
The Future of Chilecon Valley
As the Chilean government continues to invest in the local startup scene and entrepreneurs from all over the world take advantage of the innovation-friendly policies, there is no doubt that that Chilean startup scene will continue to grow.
Beyond solving the basic needs of the Chilean people, Chilecon Valley has innovative solutions in a variety of industries that can transform the global community. We can’t wait to see what else is in store!
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