The Startup Ecosystem of Ecuador

The Ecuadorian startup ecosystem is developing but has the potential to scale and become a regional hub in the future. For Ecuador to close the gap with other countries in the region, like Brazil, Chile, and Argentina, it will need to strengthen the startup ecosystem of its capital, Quito, and make sure other cities develop seed ecosystems to support the country’s growth.
The government has introduced some initiatives to strengthen tech talent in the country. For instance, infocentros provide computer training and internet access to rural communities, increasing the domestic ICT workforce. There is still much to be done by the government in terms of investment policies and improving competition, but there are signs that the future will bring new reforms.
Ecuador has some interesting ecosystem enablers, such as the coworking spaces Latinnova and ConQuito, and the academy network of the Alliance for Entrepreneurship and Innovation (AEI). Startup Ventures is an angel investor network connecting SMEs and entrepreneurs with larger corporations, and Kruger Corporation is an example of a private sector organization supporting the ecosystem with an accelerator program called KrugerLabs. With help from such initiatives, Ecuador has achieved a major milestone with the fintech startup Kushki reaching a US$ 1 billion valuation, making it the country’s first unicorn. Also, there are some great success stories following Kushki’s achievement, such as YaEesta, one of the first ecommerce platforms in the country, and FastFarma, a medicine delivery platform that became the first Ecuadorian startup to join Y Combinator.
The nation could leverage multiple strategic advantages. Since Ecuador’s currency is US Dollars, and it shares a time zone with the US, some Americans are relocating to Ecuador and working remotely. If the public sector finds a way to motivate them to incorporate in Ecuador and hire local talent to grow their businesses, it could give Ecuador’s startup ecosystem a much needed boost.