Director of SQM Lithium Ventures details the progress of the investment fund and introduces a new generation of startups

From Antofagasta

In December 2022, SQM Lithium Ventures, the corporate venture capital arm of non-metallic mining company SQM, unveiled its first fund of up to US$40 million to invest in eight Chilean or foreign startups.

The instrument is aimed at Series A stage ventures with tickets from US$ 1 to US$ 3 million and they are looking for startups to add value to their core business, that is, efficient processes linked to lithium, but also water and electromobility.

The fund is designed to be executed in 10 years and considers follow-on rounds for those startups that receive an initial investment and require subsequent financing for their growth.

To date, they have only contributed US$ 3 million to the US-based Electric Era, which created an artificial intelligence-based machine for electric vehicle fast-charging stations.

To lead SQM Lithium Ventures, they hired Ángeles Romo, former manager of Start-Up Chile at Corfo and who also had a stint as managing director of Endeavor Chile.

After presenting the second generation of SQM Lithium Ventures’ startup acceleration program, Romo spoke with DF about the execution of the corporate investment fund.

“We have been moving much faster than we projected. We already had the first executive committees this year, which fit in with the launches of the accelerator program generations,” he said.

In addition, he pointed out that this Tuesday they will add a new investment to their portfolio with an English startup of which he cannot provide details, and said that due to the rapid progress of the fund, it is “likely” that they will provide financing to two more ventures during this year.

Regarding the corporate venture capital model, Romo commented that they have four annual committees where they “constantly evaluate opportunities to invest” and stressed that this is key for startups to be able to link up with companies. “It allows them to have a partner with whom they can adjust their business and grow beyond,” he said.

The investment fund is one of SQM Lithium Ventures’ two tools for startups. The second is the global accelerator program for early-stage firms.

Acceleration Program

Last Wednesday in Antofagasta, SQM Lithium Ventures brought together entrepreneurs, investors and mentors to kick off the acceleration program for the second generation of startups, which in this edition total 12.

The program consists of four months of mentoring conducted by Endeavor Chile and SQM, as well as meetings and field visits.

Romo pointed out that the objective is to look for startups in an incipient stage, without the obligation to have sales or a minimum viable product.

More than 150 startups from all over the world applied and the idea was to select 10, but, due to “the high level”, they left 12 firms of different nationalities: Chile (4), the United States (3), Germany (2), Colombia (1), Argentina (1) and the United Kingdom (1). In total, there are eight linked to lithium, three to water and one to electromobility.

Although Romo commented that the acceleration program and the investment fund operate on separate tracks, he did not rule out that they may make some investment in some generation in the future.

The program will end in December with its respective demo day – presentation of projects to investors in the ecosystem – and the selected startups will receive US$ 25,000 each.

The event also coincided with the closing of the first generation, where on Friday they had a demo day to present the projects.

The balance, according to Romo, left them with lessons, with mixed results because “there are some who are advancing more, others who are still questioning the business model, and others who are looking at technology.”

He also commented that it is “such a limited acceleration process, that the result is very incredible, because the entrepreneurs who come, arrive with an idea and are finally able to leave their comfort zone and pushed to implement their own solutions“.