The world of mining technology (mining tech) is teeming with good ideas, talented teams, and promising technologies. Meanwhile, few recognize that startups face a far more immediate and brutal challenge even before reaching any mining site: surviving long enough to prove their solution works in the real world. I call this challenge the first valley of death.

This valley isn’t crossed with a slick presentation or promises of cost reduction. It’s crossed with enough cash to survive the first year and a half, with a complete focus on validating the value proposition, and with a financial and commercial strategy tailored to the unique nature of the mining industry.

Surviving to Reach the Anchor Client

For any mining startup, the first objective is not to scale, but to survive long enough to secure the first anchor client. Without a client willing to test the technology in real conditions, all promises of impact remain theoretical.

That’s why securing 12 to 18 months of initial funding is a basic—yet difficult—requirement. Unlike other sectors, mining has long adoption and testing cycles. The process of going from a “good idea” to a “validated on-site solution” does not happen in six months.

During this initial period, startups must operate in “war mode”:

• Spend only on essentials.
• Keep teams small and focused.
• Avoid distractions such as events or awards that don’t bring them closer to the client.

The Right Financing: Not Too Big, Not Too Soon

A common, recurring question is: Where can we get that first capital?
The answer is usually not in large, traditional venture capital funds, whose investment logic is more aligned with hypergrowth than with the patient development of industrial solutions.

In our experience, the best allies at this early stage are:

• Angel investors or entrepreneurs with mining industry experience, who can provide more than money: networks and validation.
• Government support (CORFO and similar), which allows companies to move through critical stages without giving up control too early.

Seeking out large funds too early is often a mistake. These investors frequently push for accelerated growth that doesn’t align with mining timelines or account for real implementation risks.

The Mistake of Thinking Technology Alone is Enough

One of the most common problems we see in mining tech startups is deep technical knowledge paired with a limited understanding of mining processes and the decision-makers within a mining operation.

Cost reduction and/or productivity improvements are strong, but insufficient arguments if one doesn’t understand the incentives and concerns of the people who actually run the mine.

The plant manager, maintenance chief, and/or operations superintendent are not just buying technology—they’re buying a solution that must work in a complex environment where failure is not an option.

For this reason, the ability to translate technology into a clear business case, aligned with the client’s priorities, is what ultimately opens the door to a real pilot.

The Importance of Network and Industry-Specific Knowledge

Often, the support of an advisor or partner with direct mining experience can make the difference between staying in the pitch stage and actually getting to site.

Someone who has sat on the other side of the table and understands internal dynamics, processes, and—most importantly—the industry’s fears about adopting unproven solutions is indispensable to a tech-driven startup.

Having a good idea or a great technical team is not enough: one needs a bridge to the industry—someone who speaks both languages.

A Final Thought

Unlike what traditional venture capital suggests, in mining the model is not “grow first, validate later.” It’s validate first, and grow on solid ground.

Mining tech startups must resist the temptation to follow the Silicon Valley narrative and instead focus on what really matters: building a solution that works on-site, is implementable, and generates real impact.

At Alza Mining Tech Fund, we bet on companies that, because of the very nature of the industry, cannot and should not follow the traditional “hypergrowth at all costs” model.

We believe in a different investment model: one that combines capital, networks, and deep technical knowledge to guide startups through this first valley and beyond.

Australia has already proven this model’s potential. Why shouldn’t Chile follow suit?

By Andrés Rodríguez, Managing Partner at Alza Mining Tech Fund