Colombia

Bogotá

MEMBERS:
iNNpulsa Colombia District Secretariat of Economic Development (DSED) Invest in Bogota

We can’t wait for the entire ecosystem to meet Bogotá; the capital city of Colombia and one of South America’s most lively and emerging cities. Full of culture, art, history, flavors, opportunities, and unique experiences, Bogotá is the ideal city to host Devcon and our entire community

Aya Miyaguchi
Executive Director at Ethereum Foundation
#3 Latin American Ecosystem: Performance
#3 Latin American Ecosystem: Funding
Top 30 Global Emerging Ecosystem: Funding

Highlights

Thanks to a host of government reforms and the energy of its vibrant young population, Bogotá is consolidating its position as a major Latin American startup hub. Startups in Bogotá raised the second-highest amount of those in any city in the region between 2010 and 2019 — US$1.76 billion —according to Invest in Bogota. The Colombian capital is increasingly drawing foreign direct investment. The Financial Times’ 'American Cities of the Future 2021/22’ ranked Bogotá as the second most important city in Latin America, based in large part on the city’s ability to attract foreign capital. This energy and interest is in part in response to a number of moves by the government, including its January 2021 Entrepreneurship Law aimed at streamlining the process of setting up a company and supporting small and growing businesses. The government's Business   Growth Management Unit (iNNpulsa Colombia) aims to accelerate high-potential ventures with financing and other initiatives, including its new CEmprende laboratory and Apps.CO, a digital entrepreneurship program created in partnership with the ICT Ministry of Colombia. Bogotá is also home to a range of other startup support organizations and events. The Founder Institute, one of the world's largest pre-seed accelerators, has programs in Bogotá. HubBOG offers co-working space, training, and mentorship. Its Angel Investors Club has graduated more than 140 startups, including Tappsi, TransmiSITP, LasPartes.com, LentesPlus, and Undertrail. Open Innovation Summit brings together startup ecosystem players in Bogotá, while Devcon gathers the community around Ethereum and blockchain technology.

Ecosystem by the numbers

TOTAL EARLY STAGE FUNDING
$256 m
GLOBAL AVG.
$431 m
ECOSYSTEM VALUE
$4.7 bn
GLOBAL AVG.
$10.5 bn
MEDIAN SEED ROUND
$300 k
GLOBAL AVG.
$494 k
MEDIAN SERIES A ROUND
$3.9 m
GLOBAL AVG.
$2.7 m
SOFT. ENGINEER SALARY
$23 k
GLOBAL AVG.
$42.1 k

Sub-sector Strengths

Fintech

According to data from EY, Colombia has the highest Fintech adoption rate in Latin America, with 76% of the population using Fintech services and the subsector growing at about 120% a year. Colombia is also home to the first regulatory “sandbox” in Latin America. 64% of Colombian Fintech companies are in Bogotá. Between 2016 and 2021 they raised around US$250 million. Notable examples include OmniLatam, Zinobe, Treinta, Simetrik, Valiu, Tpaga, and Minka. Buy now pay later company ADDI raised US$65 million in May 2021.

E-commerce

According to the Colombian Chamber of E-Commerce (CCCE), the number of people who purchased items online increased 259% between 2012 to 2018. Colombia is the 32nd largest market for E-commerce globally with total revenue of US$6 billion. The CCCE also organizes The E-Commerce Day Bogotá, a sub-sector-specific training and networking event. On-demand delivery startup Rappi raised US$500 million at a US$5.25 billion valuation in July 2021. Laika, an E-commerce platform for pets, closed a US$12 million Series A in June 2021.

Proptech

Between 2016 and 2021, Bogotá's Proptech startups raised approximately USD$200 million, according to Invest in Bogotá. Colombia Proptech promotes technological development in the real estate sector in the country. According to its count, there are more than 60 Proptech startups in the country with the most important clustering in Bogotá. On average these companies have grown 170% in 2021. Colombian real estate startup Habi raised a USD$100 million Series B round in July 2021.

Reasons to move your startup to Bogotá

Government Reforms

Colombia’s new Orange Law aims to promote the construction of cultural and creative infrastructure. The Youth Entrepreneurship Law grants benefits like exemption from the commercial registration fee and first year renewal, to companies with major founders or investors aged between 18 and 35 years old. The Entrepreneurship Law will provide a modern regulatory framework to facilitate creation and growth of startups and new jobs.

Tax Incentives

Colombia offers a 100% income tax exemption for seven years for eligible startups in the “Orange Sector” that generate intellectual property. There is a 100% income tax exemption for companies that invest at least USD$283,000 in the agricultural industry. Companies in Free Trade Zones enjoy benefits like 20% income tax rate and no customs duties (VAT or tariff) on goods introduced to the Free Trade Zone.

Young, Talented Workforce

The Bogotá region has one of the largest workforces in Latin America, with 6.3 million economically active workers and 2.5 million people between the ages of 15 and 28. In 2019, more than 190,000 students graduated from higher education in the region.

Startup Community

Startup Genome
Members

MEMBER
District Secretariat of Economic Development (DSED)

The DSED is the entity, within the Bogotá Mayor’s Office, in charge of leading and promoting a smart and sustainable economic growth, by formulating, managing, and implementing economic development programs and policies, to strengthen employment, competitiveness, internationalization and access to capital, connecting all economic sectors and companies of the city.

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