Colombia’s startup ecosystem has been making waves in recent years, positioning itself as one of the top-performing ecosystems in Latin America. With a dynamic and diverse market, a talented and ambitious workforce, and a government actively promoting innovation and entrepreneurship, the Colombian startup ecosystem is poised for even greater success in the years to come.

New Horizons for Startups

Colombia has a supportive startup business environment, empowered by both public and private sector ecosystem stakeholders. It is possible to find both city-specific and country-specific initiatives in Colombia.

Colombia’s success stories

A unicorn is a private equity company valued at over US$ 1 billion. Colombia is the home of Rappi, a delivery app in Sao Paulo and the first company in Colombia that becomes a unicorn with the investment of Japan’s Soft Bank. Several differentiators that contribute to Rappi’s success was the fact that customers can order almost anything and delivery time is at most 30 minutes. Another advantage of Rappi is the fact that the Latin American region shares the same language and Colombia is centrally located, so building and expanding a business in the region is easier for Colombia startups is easier. Rappi is headquartered in Bogota but operates in 9 countries and 250 cities in the region.

Lifemiles is a world-class loyalty program, and it is another company that is valued at over US$ 1 billion in Colombia. Moreover, the country has several other startups that are paving the way for becoming unicorns, such as La Haus (raised US$211.8 million as of 2022), Habi (US$ 396.8 million as of 2023), and ADDI (US$ 376.3 million as of 2022).

Fintech Hub

According to Statista, from 2016 to 2020, the number of Fintech companies has increased exponentially from 77 to 200. It is important to note that Colombia follows a proactive approach towards Fintech regulations. It is the first country in LATAM to offer a ‘regulatory sandbox,’ allowing startups to experiment under flexible conditions. Here are some additional rules and regulations in Colombia that are adapted based on Fintech companies’ needs:

• External Circular 029 of 2014: The financial services you access on your phone, but through a website instead of an app and not tied to your phone number, are also called internet banking.
• Law 1735 of 2014: This regulation is for greater financial inclusion by creating “Specialised Companies in Electronic Deposits and Payments (SEDPE),” which helps people use things like sending money, paying bills, and collecting money online. Later, the government added more rules to help SEDPE with a law called Decree 1491 from July 13, 2015.
• Fast-Track Licenses for Fintech Companies in 2019: This change made it easier for fintech companies to set up a business by making the process more flexible and streamlined.

Furthermore, Colombia Fintech is an industry trade body comprising 250 innovation companies, 70% of which are Fintechs, and the remaining 30% are firms that integrate the Fintech value chain through consulting market research and traditional finance/tech services. The organization plays a significant role in the fintech scene of Colombia by organizing events and releasing publications.

A blooming R&D

R&D is an asset for Colombia. As of 2020, there were 2,121 patent applications in the country. Additionally, the government is dedicated to supporting innovative environments in the country with Digital Transformation Centers and tax incentives. Hence, it is not surprising that Colombia is the base for the Centre for the Fourth Industrial Revolution in Latin America. This center enables the government and businesses to experiment with emerging technology policies, creating an innovative ecosystem for startups to grow.

Colombia’s Talent

A successful startup ecosystem requires good talent. In this respect, Colombia is home to 4 universities among the top 500 in the world and 12 among the top 100 in Latin America based on QS World University rankings. According to the 2022 IMD World Talent Report, Colombia has one of the largest talent pools in Latin America, and the country has a consistently growing software developer pool with 13,000 software engineers graduating every year. Last but not least, as a country offering Digital Nomad Visa, it becomes an attractive location for remote talent to get involved in Colombian Startup Scene.

Universities

Universities are the source of talent, research, innovation, and mentorship in a startup ecosystem. In Colombia, there are some good cases for cooperation between universities and other ecosystem stakeholders. Two of the primary examples are EAFIT University in Colombia and CESA which are leading universities in Colombia that play a significant role in the country’s startup ecosystem because of its strong reputation for promoting entrepreneurship and innovation, with a focus on social responsibility and sustainability. Another example is Ongoing which seeks to be the home of impact entrepreneurship, those that touch their communities, that generate employment, organizations that have a higher purpose that goes beyond creating a business

Coworking Spaces

• Circular Coworking is a coworking space based in Medellin. In addition to a coworking facility, they also offer custom offices, consultancy services, and events & communities to grow your network.
• Insight Coworking is a modern space in Cali. It offers a wide range of offices, including private offices, floating posts, a bean bag area, a negotiation table, and meeting rooms
• HubBog offers a coworking space, but more importantly, it has an acceleration program for startups in LATAM. It also offers investment to the portfolio companies. Additionally, the space offers conferences and events that contribute to the ecosystem in Bogota.
• Regus Seville is a branch of the well-known coworking chain Regus, offering two different office spaces in Seville with a wide range of plans covering hourly to yearly plans.

Accelerators/Incubators

• ScaleUp LatAm (Medellín) focuses on helping high-performing Latin American startups expand internationally. The organization operates as a network of advanced acceleration platforms, offering programs in Boston, Colombia and Mexico, with plans to establish in Chile and Peru in the near future.
• Vertical Labs LATAM (Medellín) incubates and accelerates technology-based startups through valuable mentoring. The organization provides its accelerated companies with an extensive business network and connection to smart capital to help startups reach the next level.
• Upview Ventures (Bogota) accelerates Colombian startups, providing knowledge from expert mentors and guest tutors on financial, commercial, legal, business development and marketing topics. With a 12-week program, they help accelerated companies generate a network of contacts, allies and investors, and provide physical office space in an open, creative and innovative environment in Bogota.
• EF Ventures (Bogota) is an investment group that offers office and event space, consulting services, entrepreneurship guidance and investment opportunities for companies in technology and software development, digital marketing, innovation and human resources, among others. On the other hand, the organization is active in helping to spread technology through community initiatives, with the company Sinova in Ubaté, Cundinamarca and mentoring through a collaborative entrepreneurship project called CapitalTEC 4.0 in partnership with the government of Bogota.
• Tecnoparque Bogota is a technological innovation program of the National Learning Service (SENA) aimed at all Colombians free of charge, which acts as an accelerator for the development of R&D+i (Research + Development + Innovation) projects, materialized in functional prototypes through the support of a specialized multidisciplinary team with extensive experience in accompanying projects.
• Founder Institute is the #1 place in the world to turn ideas into bankable startups and startups into global businesses. Since 2009, the organization’s highly structured acceleration programs have helped give founders the guidance and global network needed to build an impactful business.
• Suricata Labs (Bucaramanga) is a team of professionals that work to guide and advise companies and entrepreneurs in the generation of business models, in their corporate and marketing strategies, as well as accompany institutions that seek to support entrepreneurship. The company is concerned with promoting the creation of new innovative businesses with a high technological component, encouraging various activities that nurture the entrepreneurial ecosystem.

Support Organizations

In addition to the coworking spaces, accelerators, and incubators, several private and public organizations in Colombia contribute to developing the startup ecosystem in Colombia.

• KPMG is a global network of firms that provide Consulting, Audit, Tax and Legal Services. It is present in more than 147 countries and has 220,000 collaborators working around the world. From their line of innovation and technology, they help companies to transform their business, defining their differential value, directing the solution to growth strategies, risk mitigation and cost efficiency.
• Ruta N Medellin aims to enhance the city’s quality of life through the use of science, technology, and innovation. They have three main objectives: attracting skilled individuals, investment, and international companies to the city, fostering innovation and entrepreneurship, and creating solutions for the city’s challenges using science, technology, and innovation. The center is staffed by experts in various fields and has specialized knowledge in innovation, science, and technology. It also houses the Latin American Center for the Fourth Industrial Revolution.
  
• Camara de Comercio de Bogota is a private, non-profit organization that works to promote entrepreneurship and support the business community in Bogotá. It focuses on long-term goals and strategies to improve the region’s economy and benefit the community.
  
• Camara de Comercio de Cartagena is a chamber of commerce based in Cartagena. It has built acceleration and escalation programs to support entrepreneurs. Challenge Ideas for Cartagena is among their well-known acceleration programs. This impact-driven program encourages entrepreneurs to create solutions for social and environmental processes. The organization also partners with Endeavor Colombia on the [ScaleUp Caribe (https://www.endeavor.org.co/programas-endeavor/programa-scaleup-caribe/), which also targets impact-driven businesses.
  
• InnPulsa is a public sector organization affiliated with the Ministry of Commerce, Industry, and Tourism. Its mission is to “lead and integrate the national strategy for economic development through entrepreneurship, and innovation, strengthening the innovative and business ecosystem of MSMEs and the popular economy for the reindustrialization of the country and the closing of social and territorial gaps.” They have a wide range of activities accelerating entrepreneurship, influencing the mentality of Colombian entrepreneurs, and strengthening the intelligent financing ecosystem.
  
• Camara de Comercio de Cali supports and guides business owners to expand and succeed in the global market. Additionally, it serves as the official registrar of companies in Cali and nearby municipalities, as designated by the state government.
• ACI Medellin aims to establish critical international partnerships to bring more foreign investment to the city. The organization has allocated a budget of $COP 27,502 million for 2020-2023. Its primary focus includes creating strategic investment partnerships, promoting the city, and facilitating knowledge sharing.
  
• CEmprende connects academia, private businesses, the government, and the public to foster and create collaboration opportunities in the country’s field of entrepreneurship and innovation. It is the initiative of the National Government.
  
• Bancoldex is a development bank owned by the Colombian government that aims to support entrepreneurship and trade in the country with long-term and short-term financing schemes. For instance, in 2019, the bank launched $US 30 million to support new business ventures in the creative and cultural industries.
  
• Ministerio TIC stands for Ministry of Information Technologies and Communications in Colombia and offers programs targeting entrepreneurs and young people in Colombia at several intervals. In 2022, the ministry organized Mision TIC to provide programming training to 100,000 young people and adults in Colombia.
  
• AgStar is the most important agrifoodtech entrepreneurship platform in Colombia and one of the most important in Latin America. It brings together the entire ecosystem from public entities, private companies, financial institutions, accelerators, investors, universities and media, with the purpose of developing and strengthening the ecosystem at Latin America.

HealthTech Colombia is a grassroots community that brings together multiple stakeholders from the digital health ecosystem in Colombia, primarily tech entrepreneurs and other organizations working to transform the healthcare system leveraging technology and innovative processes.

Colombia is also home to numerous associations, such as:

• Colombia Fintech is the association of fintech companies in Colombia, bringing together more than 250 fintech companies. The organization’s three main goals are to achieve access to digital financial services for all Colombians, to have the best fintech talent in the region, and to be the first fintech investment destination in Latam.
• Colombia Proptech is a trade association of Proptech companies. Their mission is to promote the development of proptech in Colombia and consolidate this technological ecosystem in Latin America.