The Startup Ecosystem in Colombia: Consolidating Powerful Growth
Colombia's startup ecosystem has experienced steady growth, establishing itself as one of the most prominent in Latin America. By the end of 2023, there were 1,720 registered startups in the country, marking a 30% increase compared to the previous year. This growth is a clear indicator of the favorable environment Colombia offers for the creation and development of emerging companies, positioning the country as a regional leader.
Investments in Colombian Startups
The Colombia Tech Report 2023-2024, prepared by KPMG in collaboration with various public and private entities, reveals that 76% of investments in Colombian startups are concentrated in the fintech (39%), proptech (29%), and energytech (8%) sectors. These figures underscore the importance of these industries within the Colombian ecosystem and reflect the confidence investors have in the potential of the country’s startups.
Moreover, Colombia's international recognition has strengthened, with the country ranking 38th in the Global Startup Ecosystem Index 2024, up two positions from 2023. This progress highlights Colombia’s growing prominence on the global stage, surpassing countries like Chile and Mexico in this ranking.
Challenges and Opportunities for the Future
Despite the progress, significant challenges remain to further strengthen Colombia's startup ecosystem. According to María Paula Peñaranda, Innovation and Emerging Giants Manager at KPMG, one of the main challenges is ensuring that startups advance to more mature stages of financing. Many emerging companies in Colombia reach a point of stagnation, hindering their growth and expansion.
Peñaranda also emphasizes the need for founders to develop leadership skills, an exponential growth mindset, and an understanding of future technological trends. This will enable Colombian startups to build more solid and scalable business models, capable of competing in the global market.
Similarly, Tomás Ríos, Director of Entrepreneurship and Impact at Universidad Eafit, points out that while Colombia has strong founders, there is a lack of CEOs prepared to lead emerging companies. This leadership gap contributes to a high startup mortality rate within the first five years of operation, close to 70%.
Projections and Strategies for Growth
The future of Colombia’s startup ecosystem is promising but requires joint efforts from all stakeholders: the public sector, academia, startups, and large corporations. The key to continued growth lies in driving digital transformation, incorporating new technologies, and enhancing the training and leadership of founders.
The focus should be on strengthening regional ecosystems, improving connectivity, and encouraging the adoption of emerging technologies like artificial intelligence. With these efforts, Colombia cannot only solidify its position as a regional leader but also compete on a global scale.
Colombia's startup ecosystem has proven to be robust and continuously evolving. However, to reach its full potential, it is essential to overcome current challenges by consolidating leadership, adopting new technologies, and strengthening financing. With the collective effort of all sectors, Colombia has the opportunity to become a global benchmark in innovation and entrepreneurship.