The Startup Ecosystem of Colombia

Colombia’s startup ecosystems are becoming an important engine for the country’s economy, with various initiatives supporting entrepreneurship both at the national and municipal levels. The US$ 1 billion investment of Softbank in Rappi, a Colombian delivery app, in 2019 was an important milestone and a powerful signal that demonstrated the potential of Colombian startups as they take the lead in the region. More startups, such as La Haus, Plazzi, and Ontop, are lining up to follow in Rappi’s footsteps.
Colombia’s startup ecosystems benefit from public initiatives aimed at promoting startups, along with a variety of accelerators and incubators that help launch early stage ventures. The country is an attractive fintech hub due to favorable policies, such as simplified financial licenses for financial institutions. The government has created a favorable climate for investment and several types of investment visas are available. Similarly, the government supports the startup scene’s need for skilled personnel. Colombia’s startup ecosystem is gathering technical talent due to multiple government initiatives aimed at increasing technological literacy in smaller cities around Colombia. The country’s Digital Nomad Visa (also known as a V Visa), welcomes international talent from around the world, enriching the talent pool in the country. By continuing to improve the country’s business infrastructure, the public sector can keep quality of life high enough to retain Colombian entrepreneurs while attracting more foreign talent.
Colombia is unique in the proactive approach of its municipal chambers of commerce towards startup ecosystems, with the Bogota Chamber of Commerce and the Cali Chamber of Commerce being two examples. In most countries, chambers of commerce are focused on classic industries, but in Colombia the focus is squarely on future economic growth.
Contributing to these public sector initiatives are some additional notable stakeholders, like iNNpulsa Colombia and Invest in Bogota. Also noteworthy, Ruta-N is taking the lead in the development of the Medellin ecosystem and hosts the World Economic Forum’s Centre for the Fourth Industrial Revolution (C4IR).
While Bogota is the national leader when it comes to startup ecosystem maturity, there are a few younger hubs attracting attention. Medellin, for instance, is an increasingly popular location for expats and digital nomads to work on their startups. Similarly, Cali is one of the most innovative startup ecosystems in Colombia, offering incentives to develop the city’s tech scene. The fact that the country has multiple cities with recognizable startup activity gives an international boost to the local startup ecosystem.
By taking an active approach to ecosystem development, and supported by local Chambers of Commerce, Colombia’s startup ecosystem has become a strategic center of innovation in Latin America.