Meet José from Rukots
Q: Could you introduce yourself and share the story behind your startup, Rukots?
A: I’m Jose Miguel, the CEO and founder of Rukots. We’re an EdTech startup from Chile, aiming to revolutionize how students develop key skills like communication, teamwork, and problem-solving. Rukots offers a portfolio of collaborative challenges implemented in classrooms through tablets and laptops. Our methodology and use of gamification ensure that every student participates actively, moving away from the traditional group work model where participation is often uneven.
The idea for Rukots stemmed from case-based learning, a methodology commonly used in MBA programs. As a matter of fact, I am also the author of a bestseller case study about corporate innovation and startups that is taught in prestigious business schools. The same approach that I used to write that case is used for the Rukots’ challenges.
Q: How did you come up with the idea?
A: After my MBA at INSEAD, I worked in Germany for 6 months on a project until COVID started. I returned to Chile, where we faced a long lockdown. Using this free time, I gather with three friends, passionate about entrepreneurship, to brainstorm startup ideas. The first obstacle that we faced was to get ideas. So, we designed a framework to help us brainstorm ideas for startups. We came up with almost 50 ideas in each iteration of the framework. Most of them were just “bad ideas”, but some of them were pretty interesting. So we start assessing a couple of those. After iterating with the framework, we came up with the idea of Rukots, “The Netflix of collaborative Challenges”. My friends preferred to pass, but for me, it was the right problem to solve.
Why Start-Up Chile?
Q: What led you to join Start-Up Chile with your idea?
A: After developing the idea for Rukots, Start-Up Chile emerged as a natural choice for us. It’s renowned as the leading public accelerator in Latin America and one of the first to adopt a model offering an equity-free grant. Being an alumnus of Start-Up Chile is like having a quality stamp on your project. The program is highly competitive, so being accepted signifies that experts have already vetted and believed in your idea. The second reason was the equity-free grant, which is a huge advantage for any startup in the early stages.
To my knowledge, there aren’t many accelerators that offer an equity-free grant like Start-Up Chile. The value of this opportunity is immense. The application process itself, which includes a comprehensive survey, forces you to deeply analyze aspects like your market and business model. It’s incredibly helpful, especially in the early stages of transitioning from just an idea to a more structured plan.
Start-Up Chile Application Process
Q: Can you walk us through the application process for Start-Up Chile?
A: The application process for Start-Up Chile is quite standardized, similar to other accelerators. It involves answering a series of detailed questions, each with a word limit, to thoroughly explain your business concept. For instance, you’re asked about your market, and you have a 1000-character limit to articulate your answer. Additionally, you’re required to make a video presentation. After submitting your application, the next step is a 15-minute interview, which is a decisive factor in the selection process.
Q: How many startups does Start-Up Chile typically accept into its program?
A: When I applied to Start-Up Chile’s first program, which focuses on progressing from ideation to MVP, there were about 400 to 500 applicants, and only 40 were accepted. That was a few years ago. Nowadays, the number of applicants has almost doubled to around 900, making it even more competitive.
Q: What do you think made your company stand out and secure a spot in the program?
A: Persistence and progress were key. I actually applied to Start-Up Chile three times. The first time we only had an idea in a napkin. The second time we had interest from schools about our solution; We got on the waiting list. For the third time, things had changed significantly. Initially, it was just an idea without even a landing page. The second time, I surveyed about 100 teachers and students, adding data to support the idea. By the third application, we had developed a basic prototype and some pilots running in schools. We dedicated most of our resources from Start-Up Chile to building the MVP. So, it went from being a mere idea to something tangible, supported by a landing page, a promotional video, and some initial traction. The progress from hypothesis to fact-based development was what made the difference in our final, successful application.
Inside Start-Up Chile’s Program
Q: Once accepted, what is the structure of the Start-Up Chile program?
A: Start-Up Chile is a blend of various resources and support mechanisms. Firstly, each startup is assigned a business developer and a mentor who assists with development. The program offers an array of resources like academic content, webinars, and numerous perks. There’s also a coworking space where you can collaborate with others. However, the abundance of resources means you have to be selective about how you spend your time. You need to balance participating in webinars and actively working on your startup.
Q: Is the program structured with a set curriculum?
A: Start-Up Chile is not structured like a traditional school. There’s no one guiding you through a fixed weekly schedule. Instead, it’s about having access to a wealth of resources and being proactive in utilizing them. You’re responsible for making the most out of what’s available, whether it’s seeking advice from business developers specializing in different areas or attending relevant webinars.
Q: How does mentorship work in the program?
A: The mentorship aspect is quite flexible. During my time, which was affected by COVID-19, interactions were mostly online. A mentor in Start-Up Chile isn’t there to oversee every detail; instead, they’re a resource you can tap into for advice or to brainstorm solutions to challenges. It’s based on the understanding that as a founder, you know your startup best. The mentors are there to offer guidance and insights when you seek them out, rather than directing your every move.
Funding Opportunities of the Start-Up Chile Program
Q: Could you detail the funding you received from Start-Up Chile?
A: Start-Up Chile offers three levels of funding. In the first stage, startups receive around $14,000. The second stage offers up to $50,000. The initial $10,000 is granted upon acceptance into the program. Then, there’s a demo day or pitch day where startups can compete for an additional $5,000. For the second program, they initially provided $25,000.
Q: Does every company get to pitch on demo day, or is there a selection process?
A: Not every company gets the opportunity to pitch on demo day; you need to be selected for that. It’s a competitive process, and only a few are chosen to present their ideas for additional funding.
Q: Can you comment on the equity aspect of the funding?
A: What’s remarkable about Start-Up Chile is that it’s an equity-free program. They don’t take any ownership stake in the startups they fund. The rationale behind this approach is that it’s funded by Chilean taxpayer money, and aimed at fostering innovation and business growth. While it might seem like a loss initially, the investment is returned to the country in the long term through taxes, employment, and business growth. This is true for both Chilean startups and international startups that are accepted into the program and operate out of Chile.
Achieving Milestones and Overcoming Challenges
Q: Can you share a significant milestone achieved during your time in Start-Up Chile?
A: The program is relatively short, spanning three to four months, so drastic changes like going from an idea to a successful startup don’t usually happen in that timeframe. However, it significantly helps in structuring short-term and mid-term plans. For Rukots, a major milestone was optimizing our processes to grow faster, especially in content creation. Another significant achievement was getting a considerable number of schools to implement our free demos, eventually converting some into paying customers.
Q: Did you encounter any unexpected challenges during the program?
A: Running a startup is inherently filled with daily challenges. As for specific challenges within Start-Up Chile, I can’t say I faced any notable issues. The program was incredibly supportive. Despite the hectic environment with over 40 startups in each batch, the staff at Start-Up Chile was always eager to assist. The level of support and the ability of the staff to manage and help amidst the craziness was impressive. In fact, it was more of a pleasant surprise than a challenge to see how effectively they could guide and support us.
Rukots’ Current Status and Future Plans
Q: What is the current status of Rukots, and what milestones are you looking forward to?
A: Rukots has evolved from an idea to a prototype, and now we have a fair customer base. Our growth has been steady, especially considering the long sales cycles typical in B2B dealings with schools. We started in Chile in 2022 and have since participated in other accelerators like Unleash and Emprelatam. Recently, we have sponsored to go to eMergeAmerica 2024 in Miami to present to investors our solution. We’ve won several local awards and have been recognized as one of the most innovative companies in Chile.
Q: How do you attract new customers? Have you explored different growth channels?
A: Our approach is primarily B2B consulting sales, targeting schools directly. We do plan to use social media for brand awareness, especially among teachers and end-users. However, since our primary customers are schools, it’s more cost-effective to directly engage decision-makers than to invest heavily in social media.
Q: Who typically decides to incorporate your product in schools?
A: The decision-makers are usually in the academic department, as our content integrates with core subjects like math, language, and science. Our focus is on social and emotional learning, which we systematize in schools by embedding it in these core subjects. This approach is more effective than relegating it to extracurricular activities or short weekly sessions. The decision-makers are those who dictate the content for these core subjects. We provide the material, so teachers don’t need to prepare new classes, allowing students to practice the content while learning teamwork skills.
Q: Are there plans for Rukots to expand to other regions?
A: Yes, we are looking to expand beyond Spanish-speaking countries. In the short term, we are focusing on Chile and LATAM. But we’re interested in bringing Rukots to the USA and Europe in the long term.
Final Advice for Founders
Q: Do you have any final advice for founders thinking about applying to Start-Up Chile?
A: The most compelling aspect of Start-Up Chile is that it offers equity-free funding. This essentially means you’re receiving capital at a negative cost. There’s no reason not to apply. It’s not just free money; it’s a stamp of quality. Being an alumnus of Start-Up Chile carries significant weight when pitching to investors and clients, both in Chile and internationally. It signifies that you’ve been rigorously selected from a large pool of applicants, which in itself is a commendable achievement.
Moreover, Start-Up Chile provides access to an extensive ecosystem and a vast database of contacts in various sectors like banking, investment, and corporate, which can be incredibly valuable. It’s more than just funding; it’s an opportunity to become part of a respected and resource-rich community. I’m a big advocate for Start-Up Chile and highly recommend it to any founder looking to elevate their startup.