This newly released report developed by Crowdfund Capital Advisors (CCA) and commissioned by the Multilateral Investment Fund and the Ministry of Economy maps the current ecosystem, identifies challenges and gaps in funding, and identifies opportunities for increasing GDP growth that are tied to job creation, innovation and entrepreneurship in Chile. Among the key findings:

1) When comparing Chile to other economies that have robust crowdfunding ecosystems in place, Chile has 86 percent of all the variables (in social, cultural, technological, and regulatory terms) necessary for crowdfunding to succeed.

2) Chile’s biggest challenges to succeeding with crowdfunding include a lack of risk tolerance in investing, a lack of trust between individuals, and the lack of an active early-stage investment mindset. Crowdfunding provides capital in a more transparent, time-efficient, and direct way than has ever been
available before. It may address some of these issues by allowing Chileans to explore investing in SMEs in a limited, regulated, lower-risk way.

3) Chilean finance and technology pioneers are already exploring securities crowdfunding, even though its legality has been questioned. These platforms are highly motivated to create a transparent, efficient, and collaborative industry that works with the Chilean government to support the creation of a regulatory
approach to foster a successful crowdfunding marketplace.These include five platforms active in Chile: two debt crowdfunding platforms (Cumplo and Becual, both focused on SME lending), one equity crowdfunding platform (Broota), and two rewards-based platforms (Dale Impulso and Fondeadora). These platforms have
completed funding for nearly 1500 projects totaling over US$ 55 million. The report profiles these platforms.