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a $1.0B equity opportunity for scale-ups

Equity listing welcomes a broader network of potential investors, such as asset managers, pension funds and private wealth products.

As venture capital investment volume in Latin America continues to face structural headwinds  public markets will play a pivotal role in fostering economic growth, providing a stable funding alternative to private high-growth companies. ScaleX is the new listing segment specifically designed for scale-up companies in the region.

Exhibit 1: Latin America Late-Stage VC i vs ScaleX Investment Volume ($m)


Source: ScaleX, Superintendencia de Pensiones, Crunchbase.

Note 1). Excluding 2021 given the effect of monetary easing by central banks around the world as a result of the COVID-19 pandemic.Note 2). US$1bn expected from pension funds in Chile and US$1bn from other investors.

In the last three years, the Latin American growth stage investment volume  has suffered amid a stronger dollar, geopolitical tension and a challenging macro environment.  LPs’ flight-to-safety asset allocation has shifted from high-return/high-risk assets such as VC investments towards investment-grade fixed-income. This has driven VC investment volume lower, along with a stronger focus from Venture Capital Fund Managers from high growth names, to profitable  businesses.

As Exhibit 1 shows, during 2023, less than $1.0 B was invested in VC opportunities across Latin America, consolidating a 32% drop compared to the  historical average.


Based on our clients feedback:

  • The average time to raise Equity from VCs has increased from 12 months to 24 months.

  • Investors now prefer  companies  at operational breakeven or a solid path to achieve it.

We believe  ScaleX represents a tangible alternative to raising VC funds.

ScaleX is the "junior" chapter of the Santiago Stock Exchange, It facilitates the public listing process of equity or debt by  giving access to startups that would have been denied such an opportunity. ScaleX platform is tailored to their needs, including mechanisms, regulations, and processes beneficial to the potential  market participants. It caters for greater liquidity through a deep secondary market, while streamlining the onboarding process in 3 to 6 months.

During the last 12 months, 5 companies have issued an equivalent to $13 million of which 4 have been technology companies.


Source: Santiago Stock Exchange

Is ScaleX a liquid market?

Equity listing welcomes a broader network of potential investors, such as asset managers, pension funds and private wealth products. This boosts liquidity, not only for inaugural offerings, but more importantly for secondary offerings, representing a stable source of funding, and an exit opportunity for angels and founders.

Furthemore, a recent regulatory change allows Chile’s pension funds (AFPs) to take positions in this asset class through their standard equity portfolios and not only through their alternative asset portfolio, increasing AFP’s investment capacity, expected to reach $1.0 B during the next five years, according to ScaleX.


We also expect family offices and other professional investors from Latin America to join the Chilean pension funds increasing the expected total equity market of ScaleX to $2.0 B in the next five years. This is a game changer for our clients and we are here to help you get listed in the Santiago Stock Exchange.

Image 2: Listed companies in ScaleX program

Image 3: Expected investment in ScaleX listed shares 

by Chilean Pension Funds during the next 5 years.


Source:   ScaleX, Superintendencia de Pensiones.

What eligibility Criteria make scale-up  companies eligible for  ScaleX?

The ScaleX program allows growth companies established in Delaware and Chile to issue shares in the Santiago stock exchange, and currently, the ScaleX team is under negotiations to include also Colombian and Peruvian  scaleup companies.

After discussing with three of the largest pension funds in Chile and with four of the most prominent small and mid-caps asset managers, we have concluded investors are interested in companies that show a credible business plan, with profitability at its core and are willing to raise on average $5M in equity funding.  

Image 4: ScaleX’s Eligibility Criteria

Aluna Partners has consolidated the below criteria that meet regulatory and investor’s requirements.


Source: ScaleX and Aluna Partners Ltd.

We see ScaleX as an extraordinary opportunity for growth companies that are exploring or have decided to raise equity in the next 12 months. Furtheremore, It represents a great way for founders to exit or return capital to their early-stage investors.

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