CHILE Trends and Developments Contributed by: Francisco Barreda, Barreda Legal Tech
Secondary market Exits are still rare in Chile, so investors typically realize returns only in later-stage funding rounds (Series A and beyond), which are also uncom - mon. To provide liquidity to early investors and founders, CORFO could lead the development of a secondary market platform (unlike ScaleX, which involves public offerings). Such a platform would enable the easy transfer of equity stakes or convertible instruments (eg, SAFEs), creating a more dynamic VC market overall. To complete the virtuous investment cycle, CORFO should not only encourage startup investment (which it has done well so far) but also ensure investors can eventually realize returns through a more liquid secondary market.
Conclusion CORFO’s role in Chile’s venture capital ecosys - tem has been instrumental in building a solid foundation of support for startups. From direct funding to startups, credit lines to VC funds, and the creation of extensive collaboration networks, CORFO has positioned itself as a key player in driving sector growth. As the ecosystem matures, CORFO’s policies must evolve to address new challenges and maximize opportunities for Chil - ean entrepreneurs. CORFO’s continued support will undoubtedly remain a competitive advan - tage for Chilean startups and investors betting on Chile’s entrepreneurial future.
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