Introducing Adara
Q: Can you introduce yourself and your startup, Adara?
A: I’m Magdalena, a 34-year-old entrepreneur who launched Adara in 2021. My academic background is in business and administration, which provided a solid foundation for my venture into the tech industry.
Adara is a software development company focused on enhancing e-commerce conversion rates, improving customer experiences, and automating processes. Currently, we’re developing apps for the Shopify App Store aimed at achieving these objectives.
Q: How did you come up with the idea for your startup?
A: The idea for Adara sprouted from challenges I faced while working as a product manager in the e-commerce section of a large retailer, Ripley. I noticed a significant issue with our online platform: every customer, regardless of age or preferences, encountered the same landing page. This one-size-fits-all approach seemed inefficient, especially considering our diverse customer base, ranging from teenagers to seniors. Additionally, I was concerned about the “long tail” of inventory—products listed on later pages that rarely saw any visibility. This inefficiency led to substantial waste, with up to 20% of fashion items going unsold and eventually being discarded or sold at a loss.
Motivated to address these challenges, I envisioned a solution that would automate the sorting process of e-commerce products, personalize the shopping experience for each customer, and efficiently market the less visible products to reduce waste and enhance profitability. This three-pronged approach formed the cornerstone of Adara, aiming to revolutionize the e-commerce landscape by leveraging technology to create a more dynamic and responsive shopping environment.
Why Start-Up Chile?
Q: What motivated you to join Start-Up Chile?
A: Start-Up Chile is renowned as one of the premier accelerators in Latin America, and many would argue, globally. My decision to join was significantly influenced by positive feedback from peers who had participated in the program. They shared their exceptional experiences, highlighting two key benefits that resonated with me: the grant and the network.
The grant is a crucial aid for early-stage startups, allowing for investment in essential areas such as human resources, technology, marketing, and sales. In my case, technology being a pivotal aspect of Adara, the financial support was invaluable for fostering growth and innovation.
Equally important, if not more so, is the expansive network Start-Up Chile offers. The community encompasses a broad spectrum of individuals, from the staff who can assist with various aspects of running a business, like recruiting and marketing, to a diverse array of mentors and fellow founders. This network has been instrumental in our development, providing resources, advice, and connections that are vital for a burgeoning startup.
Additionally, the program facilitated my initiative to establish a group of women entrepreneurs in technology within Chile. Recognizing the limited presence of women in our field, I brought together a small, yet impactful, group. We meet monthly to discuss not only business strategies but also broader issues affecting our sector. This camaraderie and shared learning have been invaluable.
Start-Up Chile Application Process
Q: Can you briefly describe the application process for Start-Up Chile?
A: The application process for Start-Up Chile is straightforward yet thorough, designed to evaluate potential startups across various stages of development. Applicants are required to fill out a form, which differs slightly depending on the program they’re applying to. There are three main programs:
- Build: For those at the idea stage, allowing applicants to enter with just an idea. This is perfect for anyone who’s in the very early stages of their startup journey.
- Ignite: Aimed at startups that have begun generating sales.
- Growth: For startups looking to scale their sales.
I applied to the Build program when I had just an idea and a minimum viable product (MVP). Currently, I’m part of the Ignite program, and my goal is to progress to the Growth program within the next year.
The form itself is a valuable tool for reflection and planning. It prompts applicants to detail their market, the problem they aim to solve, their solution, team composition, business model, and revenue strategies. It also inquires about the startup’s potential impact and reasons for choosing Chile, which is an essential consideration for the application.
One crucial piece of advice I’d offer is the importance of including data and numbers in your application. Using data to validate your business model, including cash flow projections, can significantly enhance your application. This approach not only helps in assessing the viability of your startup but also in ensuring it can be profitable in the long run. Even for those who may not be accepted, completing this application is an invaluable exercise in organizing your thoughts and evaluating your startup’s potential profitability.
Inside Start-Up Chile Program
Q: What does the program look like after you get accepted?
A: Upon acceptance into Start-Up Chile, participants embark on a well-structured journey, beginning with a comprehensive welcome meeting. This session introduces the new cohort to the program’s schedule, including important dates, available resources, and an overview of the legal and logistical aspects. The emphasis from the start is on understanding the program’s expectations and red flags to avoid, ensuring compliance with essential criteria such as dedicating a founder full-time, physically relocating to Santiago, Chile, and not receiving overlapping government funds.
The kick-off is both informative and engaging, featuring activities like a treasure hunt to foster connections among participants. Regular meetings, particularly on Fridays, are part of the program in both the Ignite and Build phases. These gatherings occur in a co-working space in downtown Santiago, offering a vibrant environment for exchanging ideas and networking.
The program is structured around three main pillars:
Educational Sessions: Covering a wide range of topics from marketing to fundraising, these sessions are conducted by Startup Chile staff, alumni, and industry experts. Although attendance is recommended, recordings are available for those unable to participate live.
Personalized Business Development Support: Each startup is assigned a business developer who assists in setting and tracking key performance indicators (KPIs), crucial for monitoring growth and progress.
Demo Day and Extension Opportunity: A pivotal event where startups pitch their progress, competing for an additional grant worth half the original amount. This encourages startups to demonstrate significant advancement during their time in the program.
Participants are encouraged to actively engage with the program’s offerings, including leveraging the extensive network of mentors and professionals available through Start-Up Chile. This proactive approach is vital for maximizing the benefits and opportunities provided by the accelerator.
Q: Do you get opportunities to meet potential partners or customers through the program?
A: Absolutely! Start-Up Chile offers a variety of perks through partnerships with numerous organizations, including marketing agencies, legal firms, and public relations companies. These connections are invaluable for startups looking to expand their network and resources. Personally, I’ve taken advantage of many of these opportunities and found them extremely beneficial.
Furthermore, the program facilitates connections with potential investors and customers, which is a significant advantage for startups looking to raise capital or expand their market reach. For example, they have partnerships with major companies like Walmart, which, in my case, could serve as a potential client. It’s essential to proactively engage with your assigned business developer to explore these opportunities, whether you’re looking for customers or partners.
Q: Since it’s a grant, Start-Up Chile doesn’t take any equity from the companies, right?
A: That’s correct; the program doesn’t take any equity. However, it’s crucial to be mindful and organized with your expenses. Participants are required to report their spending midway through and at the end of the program, ensuring that the expenditures align with their stated objectives. For tech startups, this means investments should primarily go toward technology and human resources, like software development.
To manage this, I recommend keeping meticulous records of all expenses, and organizing invoices, and paperwork monthly. This organization is not just for compliance; it’s also practical for your startup’s financial health. When the program concludes, and you need to present your financial reports, having everything sorted makes the process much smoother and less stressful.
Q: How long does each Start-Up Chile program last, and what are the key differences?
A: The duration of participation in Start-Up Chile varies depending on the program you’re enrolled in. Both the Build and Ignite programs last four months, tailored to the early stages of startup development. The Growth program, on the other hand, extends over eight months, recognizing that scaling companies have different needs and might not require as intensive a schedule of activities. In the Growth stage, the focus shifts more towards providing financial support to aid expansion, rather than the more hands-on approach seen in the earlier stages.
Q: What commitment is required from founders in these programs?
A: A crucial requirement for all programs is that at least one founder must be fully dedicated to their startup. This dedication means that the founder cannot be splitting their time between a separate full-time job and the startup. The expectation is for founders to commit their full attention and efforts toward growing their business within the accelerator’s framework.
Milestones and Challenges Within the Program
Q: Can you share a significant milestone you achieved during your time in the program?
A: One of the most significant milestones for me was finding a Chief Technology Officer (CTO) and successfully raising capital. Initially, I contracted external software companies for development needs, but soon realized the importance of having an in-house CTO to oversee all technical aspects. With the program’s guidance, I undertook a thorough search process, which included preparing a detailed profile for the ideal candidate and leveraging various platforms for recruitment. Eventually, I found my CTO through a network connection, illustrating the value of a supportive community.
Additionally, raising capital marked a pivotal moment in my startup’s journey. Although the fundraising process took place after the program’s conclusion, the foundation laid during my participation was instrumental. The program provided essential resources on legal documentation, pitch preparation, financial projections, and introductions to venture capitalists (VCs) and angel investors. Opting for angel investment suited my startup’s stage better, but the exposure to the fundraising ecosystem was invaluable for navigating this complex process.
Q: Did you encounter any challenges during the program, or is there anything you would change?
A: Reflecting on my experience, one aspect I found challenging was the criteria for the Demo Day associated with the program’s extension phase. The expectations weren’t entirely clear to me, particularly regarding what the judges were evaluating. I have a background in public speaking, so delivering the pitch was within my comfort zone, and I was confident in my ability to articulate Adara’s concept, business model, and team effectively. However, what I missed was emphasizing our progress since joining the program.
This oversight, I believe, impacted my chances of securing the extension grant. Feedback suggested that the judges were looking for tangible progress, which I hadn’t highlighted adequately in my presentation. Having spoken with peers who successfully received the extension, it’s clear now that demonstrating growth and advancements is a critical component of the evaluation.
Armed with this insight, I feel better prepared for future presentations and funding opportunities. Understanding precisely what evaluators seek—progress and development, in this case—will enable me to tailor my pitches more effectively. This experience has been a valuable lesson in the importance of clear communication and aligning with the expectations of your audience, especially in competitive settings.
Adara’s Current Status and Future Goals
Q: What is the current state of your company, and what goals do you have for the future?
A: Currently, Adara has launched our inaugural Shopify app, MetaMind, designed to revolutionize the tagging process for e-commerce in the fashion industry. This app utilizes computer vision to automatically generate product tags based on images, streamlining a process that traditionally requires manual input. This innovation not only saves time but also enhances SEO for our clients. We’ve successfully onboarded 30 clients, including 5 from international markets and 8 from Chile, demonstrating our growing footprint.
Our development team is also working on a second application, a recommendation system that embodies the initial concept I shared. This system is aimed at personalizing the shopping experience, a core mission of Adara. To support our growth, we’re implementing a dual marketing strategy. Our outbound efforts involve direct outreach through emails and calls, while our inbound strategy focuses on content creation to establish Adara as a thought leader in e-commerce technology.
We’re actively expanding our clientele, targeting both small businesses on Shopify and larger entities like Adidas and Nike, which, despite longer sales cycles, offer significant revenue potential. Balancing our approach between these two segments is crucial for our sustained growth and market penetration.
Financially, we’re leveraging the grant to bring on board an additional developer to support our CTO and enhance our product offerings. Furthermore, we’re planning a capital raise in the upcoming months to further accelerate our growth, with a focus on expanding our sales and development teams. These steps are integral to our strategy for scaling Adara’s impact in the e-commerce space, as we continue to innovate and provide value to a broader spectrum of clients.
Final Advice for Prospective Start-Up Chile Applicants
Q: Do you have any final pieces of advice for founders considering applying to Start-Up Chile?
A: Firstly, and perhaps most obviously, my advice is to simply apply. Regardless of whether you’re at the idea stage or already generating sales, the application process itself is incredibly valuable. It forces you to organize your thoughts, put numbers to your ideas, and offers a chance to receive feedback from knowledgeable individuals within the startup ecosystem.
Secondly, start your application early. If you’re new to the process, be aware that it can be quite time-consuming. The effort is worthwhile because it helps you articulate your business plan and financial projections more clearly, but you’ll need ample time to do it justice.
Thirdly, seek advice from those who’ve successfully navigated the program. I’m happy to offer insights based on my experience, but talking to others who have won the grant can also provide valuable perspectives. When answering the application questions, focus on responding directly and concisely to what is asked. If you encounter a question where you might not have a complete answer, such as detailed unit economics in my case, it’s better to provide projected figures rather than leaving gaps. This approach shows foresight and a willingness to estimate based on available data, which is critical for early-stage startups.
In summary, applying to Start-Up Chile can be a rewarding exercise in itself, offering a chance to refine your business concept and receive feedback from seasoned professionals. Take the application seriously, start early, and don’t hesitate to reach out for advice to strengthen your submission.