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The conditions of the grants are that they create local jobs I believe. So 2,344 Chileans will create at least 300 jobs for 300 fellow Chileans. I wouldn't say

The conditions of the grants are that they create local jobs I believe. So 2,344 Chileans will create at least 300 jobs for 300 fellow Chileans. I wouldn't say those tax payers are "wasting" 40% of their working lives, but you are entitled to your opinion on this. I think its a smart and cheap move to get their entrepreneurial community rolling. All net jobs in the US over the last 30 years have come from startups/small businesses.

OstiaAntica 16y ago
Actually the government is displacing whatever private venture market exists in Chile. If there is a lack of venture capital in Chile, the government should address the taxes and regulations that are stifling startup activity.
- trevelyan 16y ago
  The Chilean government is actively facilitating the growth of private venture markets by reducing taxes on venture gains to a point far below those in the United States. Part of the point of this program is attracting high growth businesses into an environment where local financial networks can invest at their own risk and connect with networks outside Chile. If you believe in markets you should realize the Chilean government is doing something innovative and pro-entrepreneur at very low initial cost and likely negative cost in aggregate. I'd put it in the same boat as the matching funds programs run by Hong Kong and Singapore, with the major difference that the individual sums invested are much smaller and there is less bureaucracy involved.
trevelyan 16y ago
There's actually no requirement to hire locally, but the parent poster is wrong for a number of reasons. First because some companies are already generating revenues and spending that cash locally. Add those inflows to the matching funds participants are expected to provide (most end up spending more) and it's clear Chile's exposure per startup is lot less than $40,000. And that's without considering the multiplier effect all this spending has on the local economy. How the exact numbers run will depend on how they pick the teams, but I'm guessing that if two to three percent of the participants take investment or stay on permanently the program will be a net plus. Which makes it an income transfer if it works - but one from other parts of the world to Chile. And it's a good deal for entrepreneurs too so what is not to love?
- martharotter 16y ago
  Someone on the program now came to our Dublin OpenCoffee meetup last week to talk about it. He said that due to the cost of living, he was able to employ some very smart individuals who he wouldn't be able to afford to pay if he lived, say, here in Ireland. And mentioned that other startups were doing the same. So even if it's not a requirement it happily happens anyway due to economics/cost-of-living/etc which sounds great.

OstiaAntica 16y ago

Actually the government is displacing whatever private venture market exists in Chile. If there is a lack of venture capital in Chile, the government should address the taxes and regulations that are stifling startup activity.

trevelyan 16y ago
The Chilean government is actively facilitating the growth of private venture markets by reducing taxes on venture gains to a point far below those in the United States. Part of the point of this program is attracting high growth businesses into an environment where local financial networks can invest at their own risk and connect with networks outside Chile. If you believe in markets you should realize the Chilean government is doing something innovative and pro-entrepreneur at very low initial cost and likely negative cost in aggregate. I'd put it in the same boat as the matching funds programs run by Hong Kong and Singapore, with the major difference that the individual sums invested are much smaller and there is less bureaucracy involved.

trevelyan 16y ago

There's actually no requirement to hire locally, but the parent poster is wrong for a number of reasons. First because some companies are already generating revenues and spending that cash locally. Add those inflows to the matching funds participants are expected to provide (most end up spending more) and it's clear Chile's exposure per startup is lot less than $40,000. And that's without considering the multiplier effect all this spending has on the local economy. How the exact numbers run will depend on how they pick the teams, but I'm guessing that if two to three percent of the participants take investment or stay on permanently the program will be a net plus. Which makes it an income transfer if it works - but one from other parts of the world to Chile. And it's a good deal for entrepreneurs too so what is not to love?

martharotter 16y ago
Someone on the program now came to our Dublin OpenCoffee meetup last week to talk about it. He said that due to the cost of living, he was able to employ some very smart individuals who he wouldn't be able to afford to pay if he lived, say, here in Ireland. And mentioned that other startups were doing the same. So even if it's not a requirement it happily happens anyway due to economics/cost-of-living/etc which sounds great.