You're looking to launch a startup in South America. Which incubator is right for you?

When choosing a business incubator or accelerator, it is important for entrepreneurs to carefully consider a few aspects and inquire about the approach taken by managers or executives. For instance: - If the incubator/accelerator requests you to relocate to its headquarters, investigate whether you will have access to a large concentration of potential clients or if there is a mature ecosystem that you can learn from. - If your project is in the early stages, the incubator/accelerator should create an environment that encourages experimentation, validation, and dissemination of uncertainty. - If you are close to achieving product-market fit, the incubator/accelerator should provide the necessary conditions to help you get there.

Your main goal is likely to access a supportive ecosystem for business success. To achieve this, assess the track record and achievements associated with the incubators you're considering. For example, 500 Startups has proven effective in nurturing startups in the region, while Startup Chile and Rockstart Colombia have demonstrated their commitment to fostering innovation. By examining the overall success of these programs, you can gauge their potential to help your startup thrive. Look for alignment in terms of industry focus, development stage, and geographic presence to make an informed choice.

Several notable startup incubators in South America could suit a startup's needs. Some top ones include 500 Startups LatAm, ACE Startups, Founder Institute, Google For Startups, Mass Challenge, Rockstart Colombia, Start-Up Chile, Startup Farm, Startup Mexico, and Wayra. These incubators offer a range of support for startups, including funding, mentorship, product development assistance, sales and marketing support, and more. They also provide opportunities for networking and learning from industry experts. Some incubators specialize in certain industries, while others are more general in their focus. Before applying, startups need to research each incubator's reputation, curriculum, culture, and terms and conditions.

It is important to consider how an incubator/accelerator utilizes its networks. Research suggests that alumni play a significant role in helping new batches gain potential clients and establish activities like pilots or collaborations. If the incubator/accelerator uses its alumni network to accelerate learning, it is good news.

It is crucial to pay close attention to the terms and conditions of any agreement. For instance, some public incubators and accelerators offer grants to support teams without taking any equity. However, they do require certain obligations from the entrepreneurs. These may include reporting the amount of money spent on each expense item, attending the program in person, and creating a clear plan to have an impact on the country. This plan should include acquiring clients, creating jobs, and paying taxes.

1. Local Market Insights: An incubator well-versed in regional challenges, from regulatory shifts to consumer trends, is invaluable. 2. Agility and Flexibility: The ability to quickly pivot in response to market changes, while seizing short-term opportunities, is essential. 3. Networking and Support: A well-connected incubator can open doors to investors, partners, and skilled professionals, crucial in a region where relationships are key. 4. Risk Management: Skills in navigating risks and developing contingency plans are vital to withstand sudden shifts in the economy or politics. 5. Urgency with Vision: The right incubator instills urgency, necessary in fast-paced markets, balanced with a sustainable and scalable long-term vision.

Here are a few examples: --> NXTP Labs (Argentina) One of the most active early stage investors in Latin America based in Buenos Aires. Focused on tech, fintech, media, and entertainment startups. --> Start-Up Chile (Chile) --> Wayra (Region-wide) --> 500 Startups Latin America (Region-wide) Well-known Silicon Valley accelerator expanded into Latin America in 2017. Now run programs out of Mexico City, S?o Paulo and Buenos Aires. --> Globant Ventures (Uruguay) --> ACE Startups (Brazil)