Why do Chilean startups leave Chile for Delaware (USA) or the Cayman Islands when they scale up? That was the analysis made by La Tercera with different specialists.
There are more than 60 local startups that have migrated to raise funds, over US$ 5 million, which are not available in Chile.
"It is a mistake to suggest that Chilean startups incorporate their parent company abroad to seek a better tax deal (...) Investors who are willing to invest these amounts are generally based abroad and invest in jurisdictions they know, such as the United States (Delaware), UK (United Kingdom) or Cayman, depending on where the company operates, the origin of its revenues and its investors," said Francisco Guzman, president of the ACVC.
"Chile's challenge is to create the conditions to encourage investment in venture capital, so that new investors participate in the industry (...) Evidently, an important benefit for the country is generated if the conditions are provided for investment in startups in Chile, without the need to go out early to seek capital abroad," he added.
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