According to SmartPlanet, Chile is subsidizing Argentine technology business incubator Nxtp.Labs. The Argentines operate a conventional incubator where the investors expect to profit by taking equity in return for mentorship and capital. Start-Up Chile, in contrast, invests without receiving equity and provides no formal mentorship, relying on the recipients of the gifts to form tribes to help each other. In lieu of equity, Chile uses a Return Value Agenda (RVA) to create a techie network:
Here at Startup Chile there is a concept called a Tribe. These tribes are groups formed around general concepts, like Education, Software Technology, Enterprise Software, Finance etc. The idea of the tribe is to provide support, connections and events to assist people whose companies are based around those general concepts. Every Tribe has a leader and every 3 months the group votes for a new leader. You get 1000 RVA points for being a tribe leader.
SmartPlanet quoted entrepreneur Scott Thompson of Bungolow, reckoning that one-third of Nxtp.Labs investments participated in or are about to participate in Start-Up Chile, and that many entrepreneurs are leaving Chile in favor of Argentina and Brazil.
The Argentine government philosophy is very different. Rather than stealing money from domestic taxpayers, transferring the loot to many foreign and a few Chilean techies, Argentina steals from foreigners to ease the burden of domestic taxpayers, especially the expropriation of the YPF oil company from Spanish investors.
Mary O’Grady, Latin American columnist of the Wall Street Journal, explains how Latin America can become wealthier.