Meet Gianfranco Mignanelli and EmbedX
Q: Can you introduce yourself and tell us about EmbedX?
A: I’m Gianfranco Mignanelli, 27 years old and the founder of EmbedX. I started the company right after college when I was 24. Our mission is to bridge the gap between the insurance industry and digital platforms. We accomplish this through three main innovations. First, we offer APIs that enable seamless integration for anyone to connect with insurance companies and sell their products in an automated manner. Secondly, we’ve developed plugins for e-commerce platforms such as Shopify, Progento, Bdex, and WooCommerce, among others. These plugins allow store owners to offer extended warranties, simple insurance, and similar products easily. Lastly, we’re currently developing a SaaS platform, essentially a no-code platform that allows salespeople to create their own customized sales flows with various templates. This initiative is showing promising results. The team has grown to 20 members since we began in 2020, during the pandemic. The idea was conceived by my co-founder, Ignacio, who saw a gap in the insurance market that we could fill. Despite our initial uncertainty about what exactly to do within the industry, Ignacio’s idea sparked our journey towards creating EmbedX.
Why EmbedX Chose Start-Up Chile
Q: What led you to join Start-Up Chile?
A: The main reason we joined Start-Up Chile was the need for funding and traction as we began developing our solution. In Chile, Start-Up Chile is renowned as the premier platform for startups seeking support. It’s well-regarded across the country, with the biggest companies collaborating with the accelerator. It provided us with a comprehensive ecosystem of mentors, contacts, and resources essential for validating and advancing our idea. Through the program, we transitioned from a basic concept to a validated, learning solution. Start-Up Chile’s offering of equity-free funding was particularly appealing to us. The program connects entrepreneurs from all around the globe and even now, we continue to utilize the office spaces provided. The funding tiers are structured to support startups at various stages, starting with $20,000, then $35,000, and up to $100,000, with opportunities to double this amount based on performance. This structure has enabled us to raise significant funds without giving up equity, which has been incredible. The access to mentors, tools, and workspace has been invaluable. It’s been a fantastic journey with Start-Up Chile, providing everything we needed to grow.
Navigating the Start-Up Chile Application Process
Q: Could you describe the application process for Start-Up Chile?
A: The application process for Start-Up Chile is quite rigorous and spans two to three months. It begins with a detailed survey of around 200 questions, which is more in-depth than it initially appears. Applicants are also required to submit a one-minute pitch and, if available, a one-minute demo of their product. This stage serves as the first filter in the selection process.
After completing the survey and submitting the pitch and demo, the next step involves a pitch session. When we applied, there were about 3,000 startups in the first round, narrowed down to 200 for the second quarter. Those who advance past this initial phase are then invited for an interview about a month later. The interview is highly technical and involves a panel that typically includes a business expert, a technical expert, and an operations expert. This panel asks a range of questions, expecting applicants to have a solid grasp of their market, including numbers and potential challenges.
Following this interview, there’s another filtering process. Some may be asked for a further interview, while others are accepted into the program. If accepted, the funding is provided about a month later, coinciding with the start of the program. The program itself kicks off with a pitch and includes multiple classes covering business models, technical specifications, sales techniques, and more. It’s an extensive learning experience, supported by mentors who guide you through refining your business model and sales strategies. The whole process is intense but incredibly rewarding, providing a solid foundation for any startup.
Q: What factors contributed to EmbedX being accepted into Start-Up Chile?
A: Three critical factors contributed to our acceptance into Start-Up Chile: scalability, validation, and traction. The program prioritizes projects that demonstrate potential for scalability, have some level of validation, and show initial traction. Even at the idea stage, having interest from potential customers or actual sales can significantly impact the application’s success.
When we applied, we had already achieved $20,000 in sales, indicating to larger companies the value and applicability of our solution. This traction was a strong point in our favor. Additionally, we were in talks with several other businesses, showing further interest in our product. Another advantage for us was having our product already developed. We applied to the “Build” program, which is designed for startups with an idea or a product that hasn’t been fully validated yet, with no or minimal sales.
Following the “Build” phase, startups can progress to the “Ignite” program, aimed at those with a developed product, existing clients, and sales between $50,000 to $100,000 a year. This phase focuses on scaling the business to the next level through connections, larger investments, and support in fundraising. There’s also a “Growth” program for companies exceeding $1 million in sales annually, which focuses on further expansion. Our early sales and developed product positioned us well for acceptance into Start-Up Chile, particularly into the initial “Build” phase, setting the stage for our subsequent growth and success.
Life Inside Start-Up Chile: A Closer Look at the Program
Q: What does the Start-Up Chile program entail after acceptance?
A: Upon acceptance into Start-Up Chile, the experience is rich and multifaceted, significantly emphasizing community and mutual growth among startups. A core part of the program is the opportunity to grow alongside other startup founders facing similar challenges. Engaging daily interactions, such as sharing meals, fosters a collaborative environment where founders exchange insights and advice. This camaraderie is invaluable, often leading to business opportunities through connections made within the community. In my view, one of the most beneficial aspects of the program is the access to mentors, particularly those who are further along in their entrepreneurial journey. Learning from peers who have navigated similar paths and are willing to share their experiences and lessons can be incredibly insightful.
Additionally, the program includes practical learning opportunities such as classes, pitch training, and demo days. These sessions are designed to refine your pitching skills and provide platforms to present your business to potential investors and other companies. The blend of formal education, peer mentorship, and networking opportunities creates a comprehensive support system for startups. This environment not only aids in the immediate growth and development of your business but also contributes to building a sustainable startup ecosystem in Chile. The program’s structure, emphasizing both community and individual progress, has played a pivotal role in our journey to becoming one of the biggest startups in Chile.
Achieving Milestones and Overcoming Challenges
Q: Can you share a significant milestone EmbedX achieved during the Start-Up Chile program?
A: Certainly, one of the most significant milestones we achieved during our time in the Start-Up Chile program was increasing our sales from virtually nothing to $100,000 in just a few months. This leap was a monumental step for us, marking our transition from a startup with potential to one demonstrating real, tangible success in the market. Furthermore, the program played a crucial role in facilitating our entry into the macro lab, a development that significantly bolstered our growth trajectory. Our journey, from inception through these crucial growth phases, has been closely tied to Start-Up Chile. The program not only provided us with the necessary resources and support to achieve these milestones but also helped us become a prominent alumni member, showcasing the potential and success that can come from being part of such a nurturing and empowering ecosystem.
Q: During the Start-Up Chile program, did you encounter any challenges or unexpected hurdles?
A: Yes, there were a few challenges, particularly regarding the financial logistics of the program. One key point to be mindful of is the timing of the financial support. The funds are not disbursed immediately upon acceptance or completion of certain milestones; there’s typically a month’s delay before the money is actually available. This delay can lead to difficulties, especially for those who may have started hiring new team members in anticipation of the funds. We heard of several participants who encountered issues because they didn’t account for this delay and found themselves in a tight spot financially.
Fortunately, we were forewarned about this aspect of the program thanks to our network of friends who had previously participated. This foreknowledge allowed us to plan our finances more cautiously and avoid the pitfalls some of our peers faced. Another challenge, albeit less critical, was navigating the feedback and mentorship within the program. Not all advice or reviews are equally beneficial at every stage of your startup’s development. It’s essential to discern which pieces of advice to act upon based on your current priorities and needs. While sometimes you might receive mentorship that doesn’t align with your immediate focus, the overall experience with the program has been incredibly positive. These challenges were minor in comparison to the vast benefits and support provided by Start-Up Chile.
EmbedX’s Current Status and Goals for 2024
Q: What is the current status of EmbedX, and what milestones do you aim to achieve in 2024?
A: As of last year, EmbedX achieved $2.5 million in sales and facilitated a significant volume of insurance products sold through our APIs. This level of success marks a substantial milestone for us, reflecting both the demand for our services and the effectiveness of our solutions in the market. Looking ahead to 2024, we’ve set ambitious goals to further solidify our position in the FinTech space. A key development is our partnership with the largest bank in Chile, which represents a significant opportunity for growth and expansion. Through this partnership, we aim to reach the milestone of 1 million products sold. Additionally, we’re targeting $5 million in sales for the year. This goal is not just a number; it represents our commitment to extending our impact, improving our offerings, and continuing to innovate within the insurance industry. The journey so far has been exhilarating, filled with challenges, learning, and growth. As we move forward, these milestones for 2024 are not just targets but stepping stones towards broader objectives, including expanding our reach, enhancing our technology, and contributing to the transformation of the FinTech ecosystem in Chile and beyond.
Q: Have you begun exploring new growth channels for EmbedX?
A: As of now, we haven’t delved deeply into experimenting with various growth channels. Our primary focus has been on consolidating our current position and ensuring the robustness of our existing offerings. However, recognizing the importance of expansion and scaling, we’re planning to initiate a significant shift this year. Our strategy involves opening a new division dedicated to growth within the continent, aiming to propel EmbedX to the next level. This move signifies our commitment to not just enhancing our product line and customer base but also exploring innovative growth strategies that can amplify our impact across the market. While our experimentation in this area has been limited so far, the establishment of a growth-focused area marks the beginning of an exciting phase for us, one where we actively seek out and implement dynamic channels for expansion and visibility.
Final Advice for Prospective Start-Up Chile Applicants
Q: Do you have any advice for founders considering applying to Start-Up Chile?
A: My key piece of advice for any founder contemplating applying to Start-Up Chile is straightforward: just go for it. There’s truly nothing to lose by applying, but a world of opportunity to gain. When preparing your application, place a strong emphasis on scalability and the core value proposition of your product or idea. The focus should be on demonstrating the practicality and effectiveness of your solution, rather than on trying to present something entirely novel for the sake of novelty. In the selection process for Start-Up Chile, the emphasis is often on solutions that work and can show potential for growth, rather than on being the newest or most groundbreaking concept out there. Validation of your idea is crucial; if your product or service has shown some level of market validation and you can articulate its scalability, you’re on the right track. You don’t need to reinvent the wheel from the get-go. In summary, if you have a solid idea that meets a market need and you can present it convincingly with a focus on its potential for growth and scalability, you stand a good chance of being accepted into the program. Don’t let fear or uncertainty hold you back from taking this step.