Bettina, who are you and what do you do?
I am Bettina Stengel, I’m German-Chilean and I came to Germany to be the Director of the Trade and Commission Office of the Chilean Government, called ProChile. In this position I worked a lot with startups and the VC ecosystem, mainly helping Chilean startups to internationalize, looking for new markets or customers, finding investors, etc. Now I am an Operating Partner for Genesis Ventures, a Chilean based Venture Capital Fond with more than $100 million of assets under management & committed resources. We have operating teams in the most important hubs: London, Miami, Berlin, Bogotá and Edinburgh. Thanks to our internationality our startups and investors can benefit from our extended network. One of our key selling points is that we have the resources to capitalize on the untapped potential of the Latin American venture capital market, building a bridge between the region and the developed markets. My job? I look for startups to invest in, I do fundraising (now we are doing fundraising for our new growth fund of 100 millions), I help our portfolio companies to internationalize and, of course, look for possible exits. Network, network, network! Get to know us www.genesisventures.vc
What are the characteristics and chances of the Chilean startup ecosystem?
Chile has very good internet and digital services, is well connected and is a very stable country in Latam. It also has free trade agreements with almost every developed economy, therefore many companies can benefit from this. According to the Global Entrepreneurship Index, Chile is the best country in Latin America to start a business and 16th best in the world.
What are the challenges concerning the digital transformation in Latin America?
The digital transformation is already happening at a very fast pace. The biggest challenge is the heterogeneity between the countries in Latam, and this gap is not easy or fast to close. Even though we share a common language, which helps to connect between countries, culturally we are very different. According to CEPAL (Economic Commission for Latin America and the Caribbean) almost 50% of Latin Americans already participate in the digital universe, but this percentage is far from the OECD countries, (Chile is already an OECD country) where Internet use rates are around 82.2%, resulting in a gap of more than 28%. So this shows a great opportunity for companies to come to Latam and work in this digital transformation and become leaders in this region.
Do state initiatives like the “Digital Hub Initiative” matter? Are there similar initiatives in your country, too?
Definitely, these initiatives are crucial, but the most important thing is that all stakeholders work and cooperate together. So not only the private sector, but also the public and educative sector has to be active. Chile has no Digital Hub Initiative but we have the STARTUP CHILE program, which has now developed into three programs, The S Factory, The Seed and The follow on fund. We also have some programs that foster the Venture Capital industry. The funds get a very interesting leverage from the government, up to 1:4. STARTUP CHILE was created by the Chilean Government with two main intentions: to change the nation’s culture towards entrepreneurship and to position Chile as THE hub of innovation for Latin America. The startups get 40.000 dollars (no equity), a visa for six month, soft landing and also connections and mentoring opportunities. The only thing the government wants in return is an active participation in activities such as demo days, innovation talks, etc. And it still is, really successful. More than 1500 startups have been part of the program, more than 3000 jobs have been created and Chile has become an important startup Hub in Latin-American.
If you would start a business today, which location would you chose and why?
Of course the location is important but it depends a lot on the business that I would start. The business has to be raised with a global perspective. Of course one will always start in one market, prove the concept and from there start reaching other markets and clients, but the international focus has to be there in the concept in order to really be able to scale big. I think mobility/flexibility is a key characteristic in every business. I would absolutely think in new markets such as Latam, not everything happens in The United States or Europe, be fearless and try new things.
