The debate over the capital markets reform (MK4, for its initials in Spanish) has recently turned its attention to a new area: financing for startups and innovative companies.
During the discussion, the Finance Committee of the Chamber of Deputies approved amendments authorizing CORFO to subscribe and pay for interests in venture capital funds and to create, or contribute to, public investment funds designed to invest in other funds whose primary focus is venture capital, a structure internationally known as a “fund of funds”.
The initiative seeks to strengthen the financing ecosystem for early-stage companies by channeling resources to specialized fund managers that subsequently invest in startups and companies with high growth potential.
What is a fund of funds?
Unlike a traditional venture capital fund, which invests directly in companies, these funds invest in other venture capital funds. In this way, resources are channeled indirectly to startups: the fund of funds selects the funds in which it will invest, while those funds select the companies and manage the investments in them.
These structures are used in various markets to increase the availability of capital for innovative ventures and facilitate the participation of institutional investors in this asset class.
Why is this relevant for Chilean startups?
There are support mechanisms for early-stage companies, but many startups face difficulties accessing more significant investments as they scale their operations.
The approved amendments could help expand the funding sources available to venture capital funds and, consequently, increase the amount of capital available to innovative companies.
In addition, the measure complements other initiatives included in MK4, such as the creation of a special stock market segment for emerging companies and a new framework to promote venture capital investment.
What should startups and investors monitor?
For the innovation ecosystem, the next steps in the legislative process will be relevant not only in determining whether the fund of funds moves forward, but also in defining the final scope of venture capital incentives and the measures aimed at facilitating emerging companies’ access to the capital markets.
The debate remains open
The Government, through the Ministry of Finance, raised a constitutional objection regarding these amendments, arguing that they may concern matters for which legislative initiative lies exclusively with the President of the Republic. As a result, the debate could continue during the next stages of the bill’s legislative process.
Information updated as of October 2026.
Lucas Fyfe, Corporate Associate, Fischer y Cía.