Latam has experienced significant growth in its startup ecosystem over the past decade, led by Brazil, Colombia, and Mexico.
In 2021, there was a record investment of $14.8 billion into startups in Latin America, more than six years of venture investment combined, according to PitchBook. Big firms like Sequoia, which funded Nubank, finally gazed at the region.
Capital investment slumping last because of high-interest rates and economic slowdown, VCs aimed to take care of unit economics instead of magnanimous growth were some causes.
However, within that context, as the startup scene in Latam continues to flourish, accelerator programs gain importance for early-stage companies that need guidance and support to succeed.
As Laura Gonzalez from IGNIA said in a our surviving the venture capital landscape in Latam blog, “even though the current context is a bearish market, it is important to remember that VC, as an asset class, is focused on long-term returns, and there will always be opportunities for exceptional founders”
How can an accelerator help your startup?
Accelerator programs for early-stage companies offer several benefits. Some include funding, mentorship, and networking opportunities. Acceleration programs usually help startups grow and scale at an accelerated rate.
Let’s look at five accelerator programs for tech startups in an early stage in Latam, including their deal specifications.
1. 500 Startups Latam
500 Startups is a global venture capital firm that offers startups seed-stage funding, mentorship, and acceleration programs. 500 Latam has made over 250 investments in Spanish-speaking companies, investing around US$80.000 in exchange for 8 % of the company.
The program costs are valued at US$12.500, so the companies get US$67.500 with no need to report expenses. The program lasts 16 weeks. They have three programs a year with 10 companies per batch. Their 16 weeks of "Somos Lucha" program set growth bases to reach the next stage, professionalizing founders with tools and support to develop the abilities needed to take your company to the next step.
500 Startups help startups with the fundraising process within the program with workshops and connections with potential investors to raise your next round.
2. Platanus Ventures
Platanus Ventures help companies focus on growing fast week by week for Spanish-speaking software founders and developers. The program lasts three months, and focuses on digital startups with a team full-time devoted to the project, from two to five people, including a technical founder. They invest US$100.000 for 7 % equity.
Platanus Ventures helps you build products and understand the dynamics of funding. The program finishes with a Demo Day, startups pitch their business to raise capital.
We are a 12-week program for tech pre-seed startups that gives you the proper support, knowledge, community & network to grow and accelerate your company. We help you build momentum capital, develop a robust fundraising strategy and close your pre-seed round, gaining confidence to grow exponentially.
You will be able to become a better founder and get access to a community of founders globally. We only take 1.5% of the startup, as we're not a fund, we don't give cash in hand, but we will make sure you raise your round.
4. Start-up Chile
Start-up Chile it's a government-funded program aiming to fund mentorships and networking. It lasts 8 months, and they give you US$100.000 equity free. This program is part of a gender-focused initiative, meaning startups with women leaders on the team will receive more funding. Founders must have at least a 10% of the shareholding and full-dedicated time.
Start-Up Chile is managed by Corfo, so it is a public institution. In fact, when it started in 2010, it was the first public accelerator in the world (many countries around the world have replicated the model in the last 10 years). However, it collaborates with different private and public institutions to foster the national and international entrepreneurship ecosystem.
The program is English-taught because it has been delivered to startups from 85 countries. Start-up Chile is aiming to scale companies globally. They also empower founders and their startups to generate impact from Chile to the world regardless of the stage they are in
5. Rockstart Latam
Rockstart Latam look for Latin American startups solving the most urgent problems through technology. They offer tools and knowledge to grow startup exponentially through a semi-customized program according to the company's needs. They invest US$100.000 for 6 % equity.
They support you in investing from the early stage to B Series, strategizing to grow the business, preparing you for the next rounds of investment, and accompanying you in raising capital, for you to join a worldwide community to help you drive exposure.
Apply to Pygma startup accelerator
Priority applications are open now! The early application deadline is May 10st, 2023, at 11:59 p.m. EST. If you apply in this period, we will give priority to your interview.
You will get access to our network of VCs and Angels during and after our program. Joining our program also gives you benefits from more than USD $50k in access & credits from awesome companies that support our program.
Besides, you will get lifetime access to a high-performing community of founders and individuals who are always eager to help and give their best for their companies and the startup ecosystem.
Apply now: https://application.pygma.co/