Puerto Rico’s Parallel18 Lifts Startups With Critical Loans

Puerto Rico’s business accelerator Parallel18 has injected thousands of dollars into 39 technology startups as part of an initiative to help companies ride out the economic storm triggered by the COVID-19 pandemic.

All of these startups grew under the mentorship of the accelerator and are operating in various countries across the world, mostly in the Latin American region.

The accelerator – a subsidiary of Puerto Rico Science, Technology, and Research Trust (PRSTRT) – said it cobbled together US$1 million to create the business continuity fund.

The Trust claims to have invested between US$25,000 and US$30,000 into each startup. The investment is in the form of credit, meaning the startups have to repay the money within the next two years.

Of 39 startups, 13 are based out of Puerto Rico, with the remaining hailing from countries including Argentina, Peru, Uruguay, Chile, Colombia, and Brazil.

“From the moment the magnitude of COVID-19 became evident, we had to reinvent ourselves as a program and, at the same time, keep fulfilling our mission to support entrepreneurs from Puerto Rico and the rest of the world,” stated Eduardo Padial, Parallel18’s Director of Operations, according to a local news outlet Sociable.

Parallel18 is in fact the Puerto Rican government-backed acceleration program, under which startups are granted up to US$40,000. If these startups choose to remain on the island, they would be eligible to get more funds.