This is true. If possible it is best to start with $10k of extra funds beyond this in order to remove any worry of cash-flow issues. We are participating in Round 3 and the experience although not without it's challenges has been quite positive so far. Startup Chile held a graduation party on Friday for Round 2. Most of the teams are leaving Santiago either this week or within a few weeks and it is obvious they would prefer to continue. The staff and fellow entrepreneurs are most supportive of each other.
Be prepared to spend about one month just settled when you arrive. Most important advice I can give is to work on finding an apartment before you arrive to Chile as this has been a challenge to many who arrive. Startup Chile connects each team with a local who can help you by visiting apartments before you even arrive. Also, spring time will be coming soon and if it makes sense for your team, you can stay anywhere in Chile on the coast or in the south where the natural surroundings and outdoor activities are quite inspiring.