The Chilean Association of Investment Fund Administrators delivered a diagnosis and suggestions to the Startup Caucus to reduce barriers in the venture capital industry.
A few weeks ago, ACAFI presented four main measures to Startup Caucus lawmakers in the Chamber of Deputies. These include creating a public-private fund of funds, reviewing the tax burden to achieve fiscal neutrality, greater flexibility for pension funds to invest in venture capital, and modernizing the R&D Law.
Cristóbal Silva, president of ACAFI’s Venture Capital commission, said pension funds face regulatory requirements that are virtually impossible to meet. “Unfortunately, pension funds have very limited options in venture capital,” he stated.
Silva recalled that Chile lost regional leadership to Mexico, which multiplied its industry fivefold after implementing a fund of funds. He emphasized that the proposals seek only to match international standards, without requesting special subsidies.
