It sounds like Startup Chile is bullshit if (and only if) you have better options available. Startup investor quality is judged relative to other investors.
"Better options" is always relative. If you absolutely need cash-flow and freedom from administrative hassles, Startup Chile is not for you. But if you want some seed money to build on an idea without giving up any equity, and have ~8 weeks of working capital, this is a great deal. It all depends on the context of you and your company.
