Colombia is on the brink of becoming the global hub for tech and innovation.
But what started this move?
It started with a surge in Colombia venture capital and support from the Colombian government.
Keep reading to get all the details about Colombia’s venture!
Colombia Encouraging Innovation
Colombia has become one of the largest economies in Latin America.
In 2017, Colombia’s economic growth was down to 1.4%.
Nevertheless, in 2019, it accelerated to 3.3%! As a result, entrepreneurship and innovation became the main focal point for Colombia.
You may be asking, how is Colombia promoting entrepreneurship and innovation?
Well, the Colombian government has recently passed multiple laws and policies to support start-ups such as:
- Spin-Off Law that allows public universities to launch tech companies to promote their research
- Projoven Law that absolves young entrepreneurs from premature business expenses like registration fees
- Orange Law that focuses on the growth of industries like music, fashion, culinary and protects venture capital investments
But that’s not all!
Colombia’s startup scene is one of the most fast-growing markets in Latin America.
This, combined with positive GDP growth, has created many partnerships with impressive organizations.
Having relationships with these prestigious firms served as a pivotal role in Colombia’s venture capital success.
Colombia’s Venture Capital Industry Triumphing
Colombia is pushing innovative startups in the country, mostly in the larger and most populated cities like Medellin, Cali, and Bogota. Due to this movement, Colombian business has caught the eye of many venture capitalist seeking opportunity!
Let’s talk numbers!
So, in 2019 Colombian startups raised $1.3 billion. This is a 225% increase from 2018, $400 million.
Now the largest startup from Colombia, Rappi, acquired $1 billion in 2019 from a Japanese VC firm.
Examples of other Colombian startups that received investments include:
- Ayenda Rooms, hotel chain, received $9.9 million
- Frubana, B2B restaurant, received $12 million
- Liftit, delivery marketplace, received $26.5 million
- Omnibnk, financial service platform, received $201.6 million
Colombia’s national business development bank holds funds for venture capital investment in startups.
So far, $62.9 million has been provided for Colombian startups.
Do you see how huge this is?
Colombia’s Future Ventures
Colombia is steadily becoming undeniable within entrepreneurship and venture capital!
Regardless, the Colombian startup scene will have to continue to bring in significant investments to reach the global status that they want.
Colombia will likely become a global hub for innovation if it stays its current course.
The startup scene in Colombia keeps growing!