According to Startupblink, for 2022, Colombia climbed three positions, moving up to 44th overall and 4th in South America in Startup Ecosystem Ranking. The nation has a Quantity Score of 5.36; a Quality Score of 0.91 and a Business Score of 2.13, also the subscores reveal an intriguing picture; Colombia is ranked second. Lowest Business score among the 40 countries, indicating that the nation’s business climate lags behind its rivals. This may also be the reason why the nation’s Quantity score is low (2nd lowest among the countries listed in the 40s): a difficult business environment makes it harder for founders to be willing and able to launch a company. However, the country has the highest Quality score among those ranked in the top 40, demonstrating the great potential of local founders. demonstrated its capacity to produce results.
Bogotá, which was previously ranked first in Colombia, has moved up significantly in the Index, moving up seven ranks to be ranked 70th overall, 4th in South America, and 5th in the area of Latin America and the Caribbean.
Bogota is ranked 35th for both retail and e-commerce.
The only city in Colombia to experience a decline this year is Medellin, which slipped 22 ranks to 205th overall and out of the top 200 cities in the world while maintaining its national ranking of second place. Medellin has fallen in the Index for the third year in a row.
Regionally, Belo Horizonte, Montevideo, and Porto Alegre all had significant drops, while Medellin rose two points to take the eighth position in South America.
Third nationally, Cali had a small improvement in position this year, moving up 5 ranks to 293rd and maintaining its place in the top 300 countries worldwide. For the third year running, Cali has been moving up the rankings and making strides.
Barranquilla, which is currently ranked fourth nationally, made one of the biggest gains of 2022 by breaking into the top 500 worldwide. Barranquilla amazingly rose 410 spots to 426th rank internationally.
Since 2000, Colombia has had a significant sociopolitical recovery, and its startup ecosystems have followed suit and made great strides, turning the nation into a powerhouse for regional startups in Latin America. Colombia has one of the best startup scenes in South America and offers both affordability and strong ties to its neighbors.
The rise of Colombia’s ecosystem is absolutely exceptional and acts as motivation for nations pondering if they might develop into regional or perhaps global digital leaders. The US$1 billion investment by Softbank in Colombia’s Rappi, a delivery app, is a strong indication of the potential of Colombian companies as they seize regional leadership. More startups are trying to follow in Rappi’s footsteps, including Platzi and Ontop.
The public sector can ensure that the quality of living is high enough to keep Colombian entrepreneurs while luring more foreign talent by continuing to upgrade the nation’s infrastructure. Public programs to support entrepreneurs as well as a range of accelerators and incubators to aid in the establishment of early stage businesses assist Colombia’s startup ecosystems. Additionally, the government has improved the business environment and made a variety of investment visas available.
In contrast to most other nations where chambers of commerce are focused on traditional businesses, Colombia’s municipal chambers of commerce are unique in their proactive approach to the development of the startup ecosystem.
Providing support for these public sectors to a few more prominent participants, such as the Bogota Chamber of Commerce in Bogota, iNNpulsa Colombia, and Invest in Bogotá. It’s also important to mention that Ruta-N is leading the growth of the Medellin ecosystem. While Bogota leads the country in terms of the development of a startup ecosystem, a few younger hubs are becoming more and more popular. For example, Medellin is becoming a more and more attractive place for expats and digital nomads to work on their enterprises. This significantly expands the local startup ecosystem’s reach internationally.
Multiple government initiatives aimed at raising technological literacy in smaller cities all over Colombia are resulting in an increase in technical talent for Colombia’s startup ecosystem. This is best demonstrated in the city of Cali, which, along with Medellin and Bogota, has one of Colombia’s most cutting-edge startup ecosystems.
By actively pursuing ecosystem growth and receiving backing from the Chamber of Commerce, Cali’s startup ecosystem has grown to play a crucial role in Colombia’s startup scene and serve as a key innovation hub for the Andes region of Latin America.
Best Startups and Ecosystems
Colombian consumers’ access to finance is changing thanks to Bogota-based fintech company Addi. The “buy now, pay later” service provided by Addi’s platform enables customers to make purchases at partner merchants and pay for them over time in installments. With a reported revenue of $1 million in 2020 and a predicted revenue of $10 million in 2021, Addi, which was founded in 2018, has raised over $40 million in investment. The startup’s novel approach to consumer financing, which offers a practical and adaptable solution for customers and a lucrative partnering opportunity for merchants, is responsible for its success. Addi is a promising competitor in the fintech sector thanks to its quick development and expansion into other Latin American areas.
Treinta, a fintech startup based in Bogotá, provides financial solutions to small and medium-sized businesses in Colombia. Treinta has raised over $60 million in funding, with a reported revenue of $20 million in 2020 and a projected revenue of $50 million in 2021. The startup’s success can be attributed to its innovative approach to lending, which relies on data analytics and machine learning to evaluate creditworthiness.
La Haus, a proptech startup based in Medellín, is revolutionizing the real estate industry in Colombia by connecting homebuyers with real estate agents and developers through an online platform. La Haus has raised over $200 million in funding, with a reported revenue of $3 million in 2020 and a projected revenue of $20 million in 2021. The startup’s success can be attributed to its customer-focused approach and its innovative use of technology in the real estate industry.
Rappi, the on-demand delivery startup based in Bogotá, has been one of the most successful startups in Colombia. Founded in 2015, Rappi has become one of the largest startups in Latin America with a valuation of over $5 billion. In 2020, Rappi raised $300 million in its Series F funding round, bringing its total funding to over $1.4 billion. The startup’s revenue has grown exponentially, with a reported $300 million in revenue in 2019 and a projected revenue of over $1 billion in 2021. Rappi’s success can be attributed to its diverse range of services, including food and grocery delivery, financial services, and even pharmacy and healthcare delivery.