Who would have expected Chile to emerge as Latin America's CVC powerhouse?
- Lilia Mitina
- 4 days ago
- 9 min read
What really stood out to us is that Chile ranks 51st globally in innovation — outperforming Mexico (56th), Colombia (61st), and Argentina (76th) — while still lagging behind smaller economies such as Bulgaria and Vietnam.
But here's the real surprise:
Corporate Venture Capital activity across Latin America doubled between 2020 and 2023, with 15% of all venture deals now involving corporate investors.
Santiago has earned itself a nickname that says it all: "Chilecon Valley."
The numbers tell the story — Chile boasts the highest startup penetration per capita in Latin America. Chilean startups raised an impressive $143.2 million in 2020, with investments hitting $125.5 million at their peak. Only 15 companies in Chile have implemented corporate venture capital models so far, but the momentum is building fast.
Organizations like ProChile and Corfo aren't just supporting startups — they're actively helping transform innovative ideas into businesses that can compete globally.
The question isn't whether Chile can compete with regional neighbors anymore. It's whether the rest of Latin America can keep up with what's happening in "Chilecon Valley."
The rise of CVC in Latin America and Chile
Latin America became the fastest-growing region for venture capital in 2021, with a remarkable USD 19.50 billion invested in the economy [5]. This surge created the perfect conditions for Corporate Venture Capital to take off.
Why CVC is gaining traction in the region
What's driving this CVC boom? Three sectors are capturing corporate attention like never before: fintech (40% of large companies), sustainability (28%), and healthcare (25%).
Most Latin American CVCs aren't waiting for late-stage opportunities — 47% jump in at pre-seed, 80% at seed, and 83% at Series A rounds [11]. This early-stage focus makes perfect sense when you think about it: corporations can maximize their impact while managing risk through hybrid models that blend venture-building with venture-client approaches.
How Chile compares to other LATAM countries
Chile's digital readiness tells a compelling story. The country ranks 35th globally in Cisco's Digital Readiness Index — well ahead of Uruguay (41st), Mexico (71st), and Brazil (82nd). That digital foundation has created the ideal environment for customer-facing startups to thrive.
The corporate world has taken notice too. More than a third of Chilean companies now have venture exposure, with players like Cencosud Ventures actively hunting for e-commerce and fintech opportunities . Even when global venture markets struggled, Chilean VC secured USD 898 million in 2023 — just a 12% drop compared to the previous year.
The role of ProChile and Corfo in early-stage support
ProChile's GoGlobal program isn't just about funding — it's about building globally competitive companies. The program takes up to 48 companies annually through structured pre-internationalization and market immersion processes.
Corfo takes a different but equally important approach. Their Technological Early Stage Fund targets dynamic new ventures, helping push Chile into the Top 20 global entrepreneurship ecosystems .
Flagship Start-Up Chile program has earned recognition as one of the world's leading government initiatives . Will other Latin American countries follow Chile's playbook, or will they develop their own unique approaches to corporate venture capital?
How Chilean CVCs are driving innovation
Chilean corporate venture capital arms aren't just writing checks — they're actively reshaping entire sectors through hands-on innovation partnerships.
Cencosud Ventures and retail tech investments
José Antonio Pascual, former Wayra investments leader, runs Cencosud Ventures with a contrarian investment philosophy that's delivering remarkable results. One of their initiatives hit its 24-month targets in just five months!
The CVC focuses on scalable solutions across e-commerce, logistics, supply chain, financial technologies, and retail services. Their dual approach involves investing in external startups while creating internal ventures that align with Cencosud's business areas.
Take Mimo Live Sales — their white-label live streaming services generate approximately 800 million views annually, comparable to a Latin American television channel. More recently, Cencosud Ventures led a $4 million investment round in Vopero, a clothing operations company expanding into Chile.
Krealo's fintech strategy and Credicorp alignment
Krealo operates across the Andean Region, continuously searching for investment opportunities with disruptive growth potential [9]. Their approach balances financial returns with strategic alignment when selecting portfolio companies.
A standout investment is Shinkansen, a Chilean startup automating B2B transactions in real-time through API integration. The numbers speak for themselves: in 2023, Shinkansen's clients transacted approximately $1.4 billion using its API across Chile, Mexico, Colombia, and Peru [10]. This investment perfectly demonstrates how Krealo enhances Credicorp's core business while accessing new verticals and technologies.
University of Concepción's role in regional innovation (Udec Bio Bio)
The University of Concepción (UdeC) drives innovation through industry partnerships, technology transfer, and entrepreneurship support. Their collaboration with CMPC since 2019 covers three key areas: future industry development, talent development, and entrepreneurship acceleration.
The results are tangible. Gesfire — a forest fire management platform developed by UdeC's Data and Artificial Intelligence Center — provides real-time consolidated data on rural fires. Meanwhile, their Technology Business Platform IncubaUdeC has supported over 1,200 entrepreneurs through various project calls.
UdeC also leads the "Green Hydrogen Strategic Alliance for Biobío" project, co-financed by the Biobío Regional Government, identifying opportunities for green hydrogen use in public and production sectors.
These aren't just investment stories — they're examples of how Chilean CVCs are building the future of Latin American innovation, one strategic partnership at a time.
Hybrid models and strategic goals of CVCs
What if we told you that Chilean CVCs aren't choosing between investment models — they're combining them?
Chilean corporate venture capital units have moved beyond traditional either-or approaches. These strategic frameworks are reshaping how corporations engage with startups across the country's rapidly maturing ecosystem.
Venture building vs. venture client models
Here's where it gets interesting: Chile's CVC landscape now features two distinct approaches working in tandem.
The venture client model positions corporations as customers rather than investors, allowing companies to partner with numerous startups without equity investment [6]. Companies can rapidly test and integrate innovative solutions while maintaining lower financial risk. The venture building model takes the opposite approach — direct equity investment and deeper strategic involvement with fewer startups.
The numbers speak for themselves: venture client units can explore up to 10 times more new technologies than traditional CVC units each year [6]. Both models serve complementary purposes — venture client approaches provide immediate access to innovative solutions for specific business problems, while equity investments through CVCs offer broader strategic insights and potential financial returns.
How Casa W and Bio Bio Endeavor support hybrid innovation
Bio Bio Endeavor exemplifies this hybrid approach through its accelerator program that creates opportunities for both innovation and business relationships. The program has helped more than 20 emerging companies with dedicated space and resources, with eight of those companies successfully raising capital and expanding operations .
Fundación Chile takes a similar approach through its comprehensive platform that incorporates all components required by Corporate Venturing. Their strategy includes everything from project acceleration to venture capital for businesses, connecting corporate challenges with technological solutions from entrepreneurs. Fundación Chile has developed 15 Open Innovation Programs engaging over 1,500 startups with more than 15 corporate clients .
Balancing short-term wins with long-term strategy
For Chilean CVCs, finding equilibrium between immediate results and strategic vision remains the ultimate challenge.
Research reveals that only 22% of CVCs globally successfully implement a dual-goal approach that balances both financial returns and strategic objectives [15]. Approximately 75% of CVCs operate on evaluation horizons shorter than five years, creating pressure for quick results .
Successful Chilean CVCs must carefully blend short-term tactical wins with long-term strategic planning, ensuring that immediate business solutions contribute to broader innovation goals. The question becomes: how do you deliver results today while building the foundation for tomorrow's breakthroughs?
Social impact and sustainability in CVC investments
We're seeing something remarkable happen with Chilean Corporate Venture Capital — it's not just about financial returns anymore. These CVCs are actively pursuing social impact and sustainability goals, recognizing that long-term success demands more than profit alone.
Gender diversity in CVC teams
Spanish LATAM CVCs are actually outperforming global peers when it comes to gender diversity! 39% of teams being gender-balanced and 22% being primarily or all female stands in sharp contrast to the global venture capital landscape, where women hold only about 15% of GP positions in the US.
Start-Up Chile has made meaningful progress with 26% of supported ventures led by women. And here's something that caught our attention — Chile made history as the first nation to draft a constitution with equal representation of women and men. Yet challenges remain, as seen in the proposed 'More Women on Boards' bill seeking to increase female participation on boards of publicly traded corporations.
Sustainability as a key investment criterion
Chilean CVCs have shifted their approach entirely. Sustainability has evolved from a nice-to-have consideration to a core investment criterion that's woven throughout the entire investment process — from initial due diligence to ongoing monitoring and engagement
.
Corporations now evaluate material sustainability factors alongside traditional business metrics when making investment decisions.
We're witnessing the professionalization of corporate sustainability management across Chilean companies, with dedicated sustainability areas becoming standard in organizational structures. The implementation of progressive reforms like the 40-Hour Workweek Law demonstrates this commitment to work-life balance and broader sustainability goals.
Examples of startups aligned with UN SDGs
The Pro Tiltil Alliance exemplifies how CVC investments can align with UN Sustainable Development Goals. This collaboration between nine companies tackles environmental and socioeconomic challenges in an underdeveloped region, earning recognition under SDG 17: Partnerships for the Goals. The alliance supports agriculture through innovative approaches like cultivating raspberry varieties suitable for water-scarce environments.
Startups like Kilimo showcase the potential perfectly—using satellite-based analytics to optimize water irrigation systems while creating genuine business value. These ventures represent exactly where CVC investment in Latin America is heading: meaningful contributions to social and environmental progress that don't sacrifice financial returns.
What's your take on this evolution toward impact-driven investing?
The Future of Chilean Corporate Venture Capital
Chile has proven something remarkable — strategic corporate investment can completely reshape innovation ecosystems across an entire region.
CVCs now participate in 15% of all venture capital deals throughout Latin America, with Chilean companies leading this movement. Organizations like Cencosud Ventures have shown that contrarian investment strategies work — sometimes hitting two-year targets in just months.
Chilean venture capital secured USD 898 million in 2023 despite economic headwinds, reflecting only a 12% decrease compared to previous years and significantly outperforming global trends. This resilience comes from the robust support infrastructure ProChile and Corfo have built, positioning Chile among the Top 20 global entrepreneurship ecosystems.
The hybrid models Chilean CVCs employ offer valuable lessons for other emerging markets. Bio Bio Endeavor has helped more than 20 companies secure resources and expansion opportunities, while University of Concepción's partnerships show how academic institutions can drive regional innovation through initiatives like the "Green Hydrogen Strategic Alliance".
Challenges remain, of course. Spanish LATAM CVCs outperform global averages with 39% gender-balanced teams , but achieving true equity across the ecosystem requires continued effort. Balancing immediate business solutions with long-term strategic vision presents ongoing difficulties — especially considering 75% of CVCs operate on evaluation horizons shorter than five years.
Chilean CVCs appear poised to differentiate themselves further through sustainability-focused investments aligned with UN Sustainable Development Goals. The country that pioneered democratic constitution drafting with gender parity seems equally capable of leading Latin America's corporate venture revolution.
We're watching "Chilecon Valley" mature into something that could reshape how emerging markets approach corporate innovation. Understanding these investment patterns might prove invaluable — whether you're seeking corporate partnerships, considering startup investments, or tracking the remarkable evolution of Latin America's innovation landscape.
FAQs
Q1. What is driving the growth of Corporate Venture Capital (CVC) in Chile?
The growth of CVC in Chile is driven by the country's high startup penetration, government support through organizations like ProChile and Corfo, and a focus on key sectors such as fintech, sustainability, and healthcare. Chile's digital readiness and thriving startup ecosystem have created an attractive environment for corporate investments.
Q2. How does Chile compare to other Latin American countries in terms of innovation?
Chile ranks 51st globally in innovation, outperforming regional neighbors like Mexico, Colombia, and Argentina. It also ranks 35th in Cisco's Digital Readiness Index, ahead of other Latin American countries. This positions Chile as a leader in the region's innovation ecosystem.
Q3. What are some notable examples of Chilean CVC investments?
Cencosud Ventures has invested in retail tech startups like Mimo Live Sales, which generates significant viewership. Krealo, Credicorp's CVC arm, has invested in fintech companies like Shinkansen, which facilitates B2B transactions across multiple countries. These investments demonstrate the strategic focus of Chilean CVCs on enhancing their digital capabilities and expanding into new markets.
Q4. How are Chilean CVCs balancing short-term gains with long-term strategy?
Chilean CVCs are adopting hybrid models that combine venture-building and venture-client approaches. This allows them to explore multiple technologies quickly while also making strategic equity investments. However, balancing immediate business solutions with long-term innovation goals remains a challenge, as most CVCs operate on short evaluation horizons.
Q5. What role does sustainability play in Chilean CVC investments?
Sustainability has become a key investment criterion for Chilean CVCs. Many corporations now integrate sustainability considerations throughout their investment processes, from initial due diligence to ongoing engagement. There's also a growing focus on aligning investments with UN Sustainable Development Goals, as exemplified by initiatives like the Pro Tiltil Alliance and startups addressing environmental challenges.
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