Colombian Entrepreneurship: AI, Expansion, and Growing Sectors

Colombia has established itself as one of Latin America's leading hubs for innovation and growth in the startup ecosystem. With a sustained increase in the number of startups, reaching 2,126 in 2024, a 24% growth from the previous year, the country continues to demonstrate its dynamic entrepreneurial spirit. 

Bogotá and Medellín play strategic roles in this expansion, with the capital city fostering over half of the new companies and the emerging Medellín ecosystem focusing on healthtech. This thriving environment sets the stage for Colombia’s ongoing evolution as a regional and global player in technology-driven business.

AI as a Driver of Innovation

Artificial Intelligence (AI) has become a central force propelling the Colombian startup ecosystem forward. According to a study by German software company SAP, Colombia ranks among the top three Latin American countries investing heavily in AI. Nearly 69% of Colombian companies expect AI to significantly impact their industries, and over half plan to increase AI investments throughout 2025.

Globally, startups with Software as a Service (SaaS) models led AI-related investment rounds, attracting around $61 billion in venture capital. In Colombia, AI is not only fueling innovation but also enhancing productivity across sectors. As Daniel Blandón from Simma Capital explains, the next decade holds enormous potential for fintech startups, particularly in B2B segments, thanks to advances in AI and data-driven solutions.

Internationalization with Strategy

Successful Colombian startups like Rappi, Habi, Simetrik, and Yuno highlight the importance of international expansion in the country’s entrepreneurial growth. These companies have extended their footprint beyond national borders, reaching markets such as Mexico, Peru, Central America, Spain, the United States, and Argentina.

However, internationalization demands careful planning and balanced resource management. Eduardo González, Country Manager of BBVA Spark in Colombia and Argentina, emphasizes that startups must strategically distribute their efforts between local market consolidation and international growth to ensure sustainable expansion. This measured approach is key to maintaining momentum while tapping into new opportunities.

Booming Sectors and Ecosystem Sustainability

More than half of Colombia’s startups are concentrated in six main sectors, led by fintech, which accounts for 19% of companies innovating in financial services. 

• SaaS follows with 11%
• Healthtech (6.9%), 
• Edtech (6.3%), business management (6.3%), 
• Martech (5%) also play significant roles. 

These sectors reflect a clear focus on solutions that directly improve people’s lives in finance, health, and education.

The Colombian ecosystem remains youthful, with 80% of startups in early development stages. Many have yet to receive external funding, opting for self-financing or actively seeking capital. This presents both a challenge and an opportunity to strengthen business models and support startups through their growth phases. The evolving nature of this landscape promises a sustainable and vibrant future for Colombian entrepreneurship.

As Colombia’s entrepreneurial ecosystem continues to mature, the combination of cutting-edge technologies like artificial intelligence, strategic international expansion, and a focus on high-impact sectors positions the country as a rising innovation powerhouse. With strong support for startups in their early stages and an increasingly global outlook, Colombian entrepreneurship is set to play a pivotal role in shaping the future of Latin America’s technology landscape.