Of course it's not like Chilean citizens won't see any of that money. The startup founders need places to sleep, to eat, hang out while they're not working, etc. I'd wager a substantial amount of that money will go right back into the Chilean economy.
It's actually a fantastic kind of stimulus (though on a very small scale obviously).
Plus we go to universities, mentor locals, hire people with above-local salary, organize events...
It definitely helps the local scene in many different ways!
That's a great move by the administrators of the scheme. Not because hiring locals is a problem (though it very well may be depending on what skillset you need and the language barrier) but because the bother of administrating such a scheme is a huge bother for the startups. They are right to put as few barriers in the way as possible.
It's actually a fantastic kind of stimulus (though on a very small scale obviously).