Colombia Is One Of Latin America’s Most Promising New Tech Hubs
Ten years ago, the idea that Colombia would become a burgeoning hub for any dynamic industry beyond its notorious drug trade would have struck most observers as far-fetched. As recently as the turn of the century, conventional wisdom had it that the tropical, Andean nation was on the verge of becoming a failed state. Fast forward to the present day and Colombia already boasts one of the region’s stronger startup ecosystems, with huge potential upside still waiting to be explored. By 2018, the government hopes to have 63 percent of the country connected to broadband. And according to 2013 GSMA mobile economy figures, there are already 43.9 million mobile connections and 24 million mobile users in a country whose 47 million people give it the third largest population in Latin America and third largest Spanish-speaking population in the world. These and other figures are highly encouraging for people looking to tap a rapidly growing market, and it follows that a stronger internal tech culture will also form the groundwork for Colombia’s own aspirations in the field of innovation.
Laying the Foundation
The first stage of the government’s concerted campaign to rebrand Colombia as a technology center involved drawing in IT services with tax incentives and professional training programs. A $6.8 billion industry has taken strong root as a result, with 1,800 software development and IT service companies registered in the country. Looking forward, the hope is that IT, and the investments that went into promoting it, can diversify into a broader innovation ecosystem. With that in mind, the government has spurred a number of public initiatives to address the lack of venture capital in Colombia, currently the biggest ceiling on startup growth. Founded to support and promote tech innovation and new ventures, iNNpulsa awarded three grants of up to $800,000 in 2013 to investor groups establishing operations in Colombia.