Colombia’s Top Startups and Venture Capital Funds

Colombia is rapidly becoming a top destination for startups and venture capital investment. 

With a growing economy, a strategic location in Latin America and a government actively promoting innovation, the country is attracting plenty of local and international investors.

Its startup ecosystem is ranked second in South America, and it offers one of the most promising startup ecosystems in the world right now.

Major cities like Bogotá and Medellín are becoming hotbeds of startup innovation. Government initiatives are supporting entrepreneurs by offering funding and resources to drive growth. Plus, the country offers easy access to a vast regional market.

If Latin America is part of your entrepreneurial plan, then Colombia should definitely be in the picture. 

Here’s what you need to know about venture capital opportunities in the country.

Benefits of Raising Venture Capital in Colombia

For those looking to raise venture capital in a vibrant, fast-growing market, Colombia is a top choice. Here’s why:

Emerging Market with High-Growth Potential

Colombia’s economy is one of the fastest-growing in Latin America, with solid GDP growth over the last decade. 

Its middle class is expanding, consumer spending is rising, and sectors like fintech, e-commerce, and HealthTech are booming.

Take the example of Rappi – a Colombian unicorn that started as a delivery app and now operates in multiple countries and has a valuation of over US$5 billion.

This kind of success is just one example of the opportunities available in an economy hungry for investment.

As an emerging market, Colombia has untapped potential for creative entrepreneurs to access.

Vibrant Startup Ecosystem

Cities like Bogotá, Medellín and Cali are buzzing with accelerators, incubators and co-working spaces. 

Medellín has positioned itself as a Latin American hub for innovation with initiatives like the Ruta N Innovation District, bringing together tech companies, startups and investors.

You’ll find programs like Startupbootcamp and Rockstart operating here, which help founders scale faster. 

Whether you’re looking for mentorship, networking or a like-minded office environment, Colombia has you covered.

Government Support

The Colombian government is rolling out the red carpet for startups and investors. 

It embraces the concept of a creative economy with incentives like tax breaks for tech, digital media and software development companies.

Colombia also offers free trade zones that provide tax breaks and operational cost reductions for international investors. 

While Colombia has a 35% corporate tax rate, qualifying businesses in free trade zones can pay corporate income tax at 20%.

Programs like iNNpulsa help startups connect with funding, training and networks to grow their businesses. 

The government’s active role in helping entrepreneurs makes it easier for startups to thrive and for investors to feel secure in their investments. An important part of going where you’re treated best is being supported, and Colombia certainly offers this.

Access to the Latin American Market

Colombia’s position makes it a strategic gateway to the rest of Latin America. 

The country borders five countries and has direct access to both the Pacific Ocean and the Caribbean Sea, making it ideal for trade and expansion.

By raising capital in Colombia, you’re not just entering one market – you’re setting up the perfect position to scale into others like Mexico, Brazil, Peru and beyond. 

The Pacific Alliance is a trade bloc that includes Colombia, Chile, Mexico and Peru, which adds more value to the country’s international ties.

By using Colombia’s central position, startups like La Haus, a Colombian real estate platform, have successfully expanded across Latin America, tapping into broader markets.

Favourable Investment Environment

Colombia is working hard to create an investor-friendly environment. 

The country’s pro-investment laws and business-friendly reforms are designed to reduce risks for venture capitalists.

For example, Colombia is now a hotspot for investments in fintech, AgriTech and e-commerce, attracting major players like SoftBank with offerings like the Latin America fund and Sequoia Capital. 

Plus, startups in Colombia often have lower valuations compared to those in the US or Europe. For VCs, this means better deals. For founders, it means keeping more equity while securing funding.

Let’s not forget the practical advantages. Compared to places like Silicon Valley, operational costs in Colombia are much lower. So, your investment stretches further, a win-win for both founders and investors.

Getting Colombia Residence 

Getting Colombian residence through investment could be a smart move if you’re looking to diversify your options in Latin America. 

You can qualify by investing in real estate (starting at about US$120,000) or in a business (from US$35,000). 

For real estate, it’s best to buy at least 150% of the minimum required value so that your property continually meets the renewal thresholds. 

Colombia also offers a direct foreign investment visa for higher thresholds (around US$202,000). 

These options give you temporary residence, which you could turn into a permanent residence permit after holding a Migrant Visa for five years. 

Once you get Colombian permanent residence, you only need to spend one day every two years in the country. You can then apply for citizenship after five years.

If you want to test the waters, Colombia also offers a digital nomad visa, which could be a smart choice for some entrepreneurs.

Top 15 Venture Capital Funds in Colombia

Considering Colombia for venture capital (VC)? As we’ve mentioned, the country is open to entrepreneurship, which means there are plenty of VC funds actively investing in startups. Here are some of the best.

Note that many of these funds are not specifically based in Colombia, but they have an active presence in the country.

1. Latin Leap

Latin Leap is a venture capital studio focused on tech growth in Latin America. It mainly deals with soft-landing purpose-driven tech firms in the region. 

Founded by Stefan Krautwald, Latin Leap has positioned itself as a platform for driving innovation across diverse sectors. The firm also has strong corporate alliances.

Key facts:

• Founded: 2019
• Focus: Seed, Series A, Series B, Series C
• Sectors: E-commerce, AgriTech, HR tech, HealthTech, prop tech, clean tech, EdTech, mobility, Fintech
• Key Investments: Talkpush, Vecindario, Ritmo, Dimuto, Tennders.

2. Cube Ventures

Cube Ventures is an early-stage investor and company builder. It’s famous for supporting tech startups in Latin America through funding, mentorship and networking opportunities. 

Cube connects startups with angels and global funds to help companies scale.

Key facts: 

• Founded: 2020
• Focus: Seed, Series A
• Sectors: Technology
• Key Investments: Patiya, Rei House, Guardian Kids, Clickgreen, PharMed.

3. Solid Ventures

Solid Ventures is well-established and bridges Europe and Latin America with its venture investments. The firm specialises in scaling established tech companies and provides capital and strategic support for international growth. 

Key facts: 

• Founded: 2005
• Focus: Series B, Series C
• Sectors: Technology
• Key Investments: Bold, HoyTrabajas, Cleeng, UniteX, Foody.

4. Magma Partners

Magma Partners is one of Latin America’s oldest and most experienced VCs. With a portfolio of over 125 companies and over US$80 million invested, it supports startups through financial backing and hands-on guidance. 

It mainly focuses on scalable tech businesses and offers good support for entrepreneurs looking to break into the broader US and Latin American markets.

Key facts: 

• Founded: 1999
• Focus: Pre-seed, Seed, Series A
• Sectors: Sector agnostic
• Key Investments: Kushki, Billpocket, Nuvo Cargo, Fanatiz, Verso.

5. Bonsai Venture Capital

Bonsai Venture Capital is a European firm that operates across global markets, including Colombia. With a focus on early-stage and growth-stage startups, it provides funding ranging from €250,000 to €2.5 million.

Key facts: 

• Founded: 2006
• Focus: Early Stage, Growth
• Sectors: Gaming, Fintech, healthcare, cybersecurity, travel and hospitality
• Key Investments: Frenetic, Signaturit, Miss Tipsi.

6. Marathon Ventures

Marathon Ventures is a talent-driven venture fund that backs early-stage startups in Latin America. The fund specialises in helping founders lay strong foundations through funding, strategic resources and access to a vast network of industry experts. 

Key facts: 

• Founded: 2020
• Focus: Pre-seed, Seed, Series A
• Sectors: Sector agnostic
• Key Investments: Tul, Neivor, Sumer, Welbe, Meru, Kalto.

7. Elevar Equity

Elevar Equity is a leader in impact investing and early-growth capital. 

With a focus on underserved markets, Elevar has transformed access to products and services for over 30 million people across India and Latin America. 

Key facts: 

• Founded: 2008
• Focus: Seed, Series A, Series B, Series C
• Sectors: Sector agnostic
• Key Investments: Fairplay, Cloudphysician, LEAD, Galena, Favo.

8. Polymath Ventures

Polymath Ventures is a unique venture builder that designs and launches human-centred businesses in emerging markets. It focuses on empowering Latin America’s middle class through innovative digital solutions. 

Polymath not only invests in startups but also creates them in-house by putting together dedicated founding teams and providing support throughout the company’s lifecycle.

Key facts: 

• Founded: 2011
• Focus: Seed
• Sectors: Technology
• Key Investments: Pacto, Elenas, Tani, Autolab, Aflore.

9. Arrebol Capital

Arrebol Capital is a key player in Colombia’s early-stage investment scene. It focuses on tech startups with high growth potential, offering resources, mentorship and funding to scale these ventures. 

Key facts: 

• Founded: 2020
• Focus: Seed
• Sectors: Technology
• Key Investments: Aflore, Cubbo, Finvero, Monto, Linxe, Plurall.

10. Rockstart

Rockstart is a global startup accelerator and VC firm with a presence in Colombia. Its programs include mentorship, access to finance and vast networking opportunities. 

Key facts: 

• Founded: 2012
• Focus: Pre-seed, Seed, Series A, Series B.
• Sectors: AgriFood, energy, emerging tech
• Key Investments: Pantrii, Sympower, iClinic, Dexter, HUBS.

11. Veronorte

Veronorte is a Medellin-based VC firm committed to investing in sustainability-focused companies. It actively backs startups that address global challenges while driving social and environmental impact.

Key facts: 

• Founded: 2015
• Focus: Seed, Series A, Series B, Series C
• Sectors: Sustainable development, sustainable wellbeing
• Key Investments: Acscendo, Justo, Pager, MoneyLion, Zendrive, Trov.

12. QED Investors

QED Investors is a global fintech-focused venture capital firm with a strong presence in Colombia and Latin America. It invests in companies across the financial services sector, offering capital and strategic guidance.

Key facts: 

• Founded: 2008
• Focus: Early Stage, Seed
• Sectors: Fintech, proptech, e-commerce, blockchain, insurtech
• Key Investments: Shop Circle, Solfácil, Zubale.

13. AI Fund

As you can tell from the name, AI Fund specialises in startups that use artificial intelligence to disrupt traditional industries. 

With a hands-on approach, it supports founders from concept to market leadership.

Key facts: 

• Founded: 2017
• Focus: Seed, Series A.
• Sectors: Artificial Intelligence
• Key Investments: Baseten, Credo AI, Content Groove, Speech Lab, Woebot Health.

14. Alive Ventures

Alive Ventures focuses on creating a sustainable and inclusive future for Latin America by backing startups that deliver social and environmental impact. Its investments prioritise improving lives in underserved communities across the region.

Key facts: 

• Founded: 2018
• Focus: Seed, Series A, Series B
• Sectors: Impact investing
• Key Investments: Sunco, Finaktiva, Slang, Symplifica, Hybrico.

15. EWA Capital

EWA Capital is all about gender diversity and inclusion while investing in early-stage startups with high scalability potential. This firm works closely with entrepreneurs, providing strategic mentorship and offering extensive industry networks.

Key facts: 

• Founded: 2015
• Focus: Seed, Series A
• Sectors: Sector Agnostic
• Key Investments: Merqueo, 1doc3, Platzi, Epica, Gocargo.

Emerging Trends in Colombia’s Startup Ecosystem

Colombia’s startup scene is thriving, with fintech, health tech and sustainability leading the charge. 

Startups like Rappi and La Haus have grabbed global attention by scaling across Latin America and securing massive funding. 

Fintech remains the crown jewel in Colombia, which is boosted by open banking and rapid digital adoption in the country. 

Meanwhile, sustainability-focused ventures are also taking off, with some VC funds actively focused on sustainability.

The ecosystem is also shaped by global tech trends. As you’d expect from any major startup hub, there’s plenty of blockchain and AI innovation sweeping Colombia.

With a young, tech-savvy population and strong government support, Colombia is becoming a powerhouse for regional innovation.

Challenges for Startups in Colombia

Despite the momentum, startups in Colombia face their fair share of hurdles. 

Here are some of the considerations to weigh up when looking at Colombia as a destination for VC funding:

• Early-stage funding is harder to come by compared to more established ecosystems like Brazil or Mexico, making it tough for many entrepreneurs to get off the ground. 

• Regulatory red tape and bureaucratic inefficiencies add extra layers of complexity to operating a business here. 

• Outside key cities like Bogotá and Medellín, infrastructure gaps can also create challenges for scaling businesses. 

How to Invest in Venture Capital Funds in Colombia

Colombia’s venture capital scene is growing, and investors – both local and foreign – are taking notice. 

To get involved, start by researching established funds like the ones we’ve listed above. Many funds welcome limited partners with capital and a willingness to invest in Colombia’s startup ecosystem.

Foreign investors should look into Colombia’s investment treaties and incentives. 

The Foreign Investment Registration (RFI) allows you to register your capital with the Colombian central bank, which makes repatriation and tax benefits easier. 

Working with local financial advisors or legal experts is key to navigating tax rules and ensuring compliance. We can help.

Domestic investors can take advantage of programs like iNNpulsa’s innovation initiatives to co-invest in startups alongside established VCs. 

Angel investor networks also provide opportunities to join syndicates and invest smaller amounts in early-stage companies.

Top Venture Capital Funds in Colombia: FAQs

Raising Venture Capital in Colombia

Colombia is rapidly emerging as a hotspot for both startups and investors. 

With a growing middle class, increasing government support and a booming tech scene, it offers huge potential for companies to succeed. It’s also a great place to live.

The business ecosystem in cities like Bogotá and Medellín is attracting international investors eager to tap into Latin America’s expanding markets. 

If you’re looking to launch or expand your business in an opportunity-rich environment, Colombia should absolutely be on your radar. 

At Nomad Capitalist, we can help you navigate the process of settling and establishing your business in the right country, ensuring you’re well-positioned for success. To see how you can make Colombia your next great venture destination, get in touch.