Colombia hosts over 2,126 active startups in 2025, making it the third-largest startup ecosystem in Latin America with $513 million raised in venture capital during 2024.
Colombian startups raised $513 million across 104 deals in 2024. Bogota captures 89% of capital while Medellin grew 41% in startup activity. Key sectors include fintech, proptech, medical tourism, and agritech.
The Startup VC connects entrepreneurs with opportunities across Latin America through hands-on mentorship and strategic capital. Below, you’ll find current market conditions, funding options, top sectors, and regulatory requirements for starting a business in Colombia.
What Is the Economic Climate for Entrepreneurship in Colombia?
The economic climate for entrepreneurship in Colombia is stabilizing after a post-pandemic adjustment period. GDP reached approximately $418-438 billion in 2024-2025. Growth rates recovered to 1.7% in 2024 and are projected to reach 2.5% in 2025.
Foreign direct investment reached $14.2 billion in 2024. Non-mining FDI grew to $10.6 billion, accounting for 75% of total inflows. Financial services, manufacturing, and tourism lead the non-extractive sectors.
Financial and business services attracted $4.4 billion in FDI. This growth comes from fintech expansion and nearshoring demand for business process outsourcing. The United States remains the primary source of foreign investment.
Colombia ranks 2nd in South America and 36th globally for startup ecosystems according to StartupBlink 2025. The Global Innovation Index places Colombia 61st globally and 4th in Latin America. The country excels in business sophistication but lags in research and education infrastructure.
Why Is Medellin a Leader in Innovation and Entrepreneurship?
Medellin is a leader in innovation because of sustained public policy investment and dedicated innovation infrastructure. StartupBlink recognized Medellin as the fastest-growing startup ecosystem in Colombia in 2025. The city expanded 41% in the Global Startup Ecosystem Index.
Ruta N serves as Medellin’s innovation agency, operating with corporate efficiency. The organization focuses on three pillars: energizing solutions for city challenges, enabling global connections, and accelerating high-impact development.
FutuMed is a “Payment by Results” program that allows startups to test technologies in real urban environments. This living lab approach targets solutions in mobility, energy, and health. Medellin Next identifies and accelerates 25 high-potential tech companies for global export markets.
Medellin holds Special District status for Science, Technology, and Innovation. This allows specific tax incentives and regulatory sandboxes. The city differentiates itself from other Colombian municipalities through these legal advantages.
What Are the Best Industries for Entrepreneurs in Colombia?
The best industries for entrepreneurs in Colombia include fintech, proptech, medical tourism, agritech, and IT services. Each sector offers distinct opportunities based on market gaps and government support.
What Opportunities Exist in Fintech?
Fintech opportunities in Colombia stem from low banking satisfaction and high smartphone penetration. Fintech comprises 19% of all Colombian startups and attracts 50% of historical venture capital.
The sector is shifting from B2C wallets to B2B infrastructure. Companies like Cobre handle treasury management while Yuno provides payment orchestration. Open Finance regulations are driving new banking-as-a-service innovations.
What Opportunities Exist in Medical Tourism?
Medical tourism opportunities in Colombia include cosmetic surgery, dental care, fertility treatments, and bariatric procedures. The sector generated $235 million in 2024 with projections to reach $6.3 billion by 2032.
Colombia hosts over 85,000 international patients annually. Medellin served 23,323 international patients in 2024 alone. Key specialties include cosmetic surgery, dentistry, and ophthalmology. Cali leads in cosmetic and bariatric procedures.
Startups like Welli provide financing for medical procedures. Doc-Doc offers telemedicine services. These platforms create a symbiotic ecosystem between traditional clinics and technology companies. For more details, see our guide to top tech startups in Colombia.
What Opportunities Exist in Agritech?
Agritech opportunities in Colombia focus on technology solutions for the agricultural sector. The country hosts approximately 163 agrifoodtech startups. The sector attracted about $40 million in investment in 2024.
The sector is pivoting toward asset-light models after high-profile failures. Agrapp connects retail investors with farmers to provide financing. BloomPal focuses on export logistics optimization. These models avoid the unit economics challenges of moving perishable goods.
What Opportunities Exist in Technology?
Technology opportunities in Colombia center on IT services and software development. Colombia’s IT sector is the third-largest in Latin America, valued at $8.2 billion in 2024.
US demand for nearshore talent drives the sector. Colombian developers work in US time zones at competitive rates. IT services and consulting dominate 65% of the market. Medellin’s “Software Valley” initiative aims to increase developer supply.
What Funding Options Exist for Entrepreneurs in Colombia?
Funding options for entrepreneurs in Colombia include government programs, venture capital, accelerators, and venture builders. The Colombian state is the largest seed investor in the country.
The SENA Fondo Emprender provides conditionally forgivable loans to entrepreneurs. If the entrepreneur meets agreed milestones like job creation after one year, the loan converts to a grant. Specific calls target regions like Catatumbo with $3 billion COP for 40 projects.
iNNpulsa manages CEmprende and various scale-up programs. The organization connects founders with corporate partners and investors. Endeavor Colombia provides support for high-impact scale-ups.
Venture capital stabilized in 2024 after corrections in 2023. Colombian startups raised approximately $513 million across 104 deals. Investors now demand clear paths to profitability over user growth. M&A transactions grew by 35% in 2024 as larger players acquire smaller competitors.
Venture builders like Rockstart focus on agrifood and energy sectors. Corporate venture builders from Colombian conglomerates create internal startup studios. These models provide operational support alongside capital investment. Learn more about how venture builders work.
What Regulations Apply to Entrepreneurs in Colombia?
Regulations for entrepreneurs in Colombia are governed primarily by the Entrepreneurship Law (Ley 2069 of 2020). This law mandates that public entities prioritize SMEs and startups in contracting. It opened a massive B2G market previously inaccessible due to experience requirements.
The law established the legal framework for regulatory sandboxes. The Financial Superintendence uses these sandboxes to test fintech innovations like crypto-assets and crowdfunding platforms.
Foreign entrepreneurs retain 100% ownership in startups they form in Colombia. There are no extreme differences between foreign and domestic entrepreneurs in terms of legal value. This makes Colombia more accessible than many other South American countries. See our guide to foreign-owned startups in Colombia for examples.
The Digital Nomad Visa (Visa V) allows remote workers to live in Colombia for up to two years. This visa has helped turn Medellin into a global remote work hub. It injects foreign currency into the local service economy and facilitates knowledge transfer.
Where Are the Main Startup Hubs in Colombia?
The main startup hubs in Colombia are Bogota, Medellin, and Cali. This “Golden Triangle” drives the majority of ecosystem activity with distinct characteristics in each city.
Bogota concentrates 50.5% of all startups and captures 89% of capital raised. The capital serves as the financial and corporate headquarters for the ecosystem. Access to talent, regulators, and finance is seamless in Bogota.
Medellin holds 25% of Colombian startups through the Antioquia region. The city specializes in innovation and technology with strong public policy support. Ruta N and Special District status differentiate Medellin from other cities.
Cali and Valle del Cauca represent 11% of startups. The city leads in healthtech and medical tourism due to strong clinical infrastructure. Cali is also the natural center for agritech given its proximity to major agricultural operations.
Barranquilla is emerging as the “Capital of Energy.” The port city attracts energytech and logistics startups. Its strategic location and renewable energy resources drive innovation in these sectors.
What Challenges Do Entrepreneurs Face in Colombia?
Entrepreneurs in Colombia face challenges including high failure rates, talent gaps, and regional inequality. Approximately 75% of Colombian startups cease operations within two years.
The startup failure rate is driven by lack of product-market fit and financial mismanagement. The tight capital environment has made these issues more pronounced since 2023.
A talent gap exists for senior technical roles. While junior developer supply is high, architects, DevOps engineers, and data scientists remain scarce. English-speaking professionals capable of leading global teams are in short supply.
Regional inequality continues to widen. Coastal and rural ecosystems lack the angel investor networks found in Bogota. Mentorship density outside the Golden Triangle remains low.
Over 70% of Colombian adults know someone who has started a business recently. However, 80% of new entrepreneurs cite necessity rather than opportunity as their primary motivation. Fear of failure affects nearly half of potential entrepreneurs.
Frequently Asked Questions
How Do You Start a Business in Colombia as a Foreigner?
You can start a business in Colombia as a foreigner by registering with the Chamber of Commerce and obtaining a tax ID (NIT). Foreign entrepreneurs retain 100% ownership of their companies. The process typically takes 2-4 weeks. The Digital Nomad Visa (Visa V) allows remote workers to stay up to two years while building their business.
What Are the Main Funding Sources for Entrepreneurs in Colombia?
The main funding sources for entrepreneurs in Colombia are SENA Fondo Emprender, iNNpulsa programs, venture capital, accelerators, and venture builders. SENA provides conditionally forgivable loans that convert to grants if milestones are met. Colombian startups raised $513 million in venture capital across 104 deals in 2024.
What Is the Startup Success Rate in Colombia?
The startup success rate in Colombia shows that approximately 25% of startups survive beyond two years. The 75% failure rate is driven by lack of product-market fit and financial mismanagement. Startups in Bogota have better access to capital and mentorship, improving their survival odds.
Is Colombia a Good Place to Start a Tech Company?
Yes, Colombia is a good place to start a tech company due to competitive talent costs, US timezone alignment, and strong government support. The IT sector is valued at $8.2 billion and ranks third in Latin America. Medellin’s Special District status offers tax incentives and regulatory sandboxes for tech startups.
What Visas Do Entrepreneurs Need for Colombia?
Entrepreneurs need either a Digital Nomad Visa (Visa V) or a Business Visa (Visa M) for Colombia. The Digital Nomad Visa allows stays up to two years for remote workers earning foreign income. The Business Visa suits those establishing a physical company presence. Both allow 100% foreign ownership of businesses.
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