At the center of the growth is the government-sponsored organization Ruta N, which is an innovation and business center for new companies. Among other things, the corporation offers young companies support in key areas of business including finance, recruitment and public relations.
Another reason entrepreneurs may want to take a stong look at Colombia is because its coming online quickly. The Colombia government is working to bring 63 percent of its population online by 2018, according to a report by Colombia Reports. It also boasts 69 percent smartphone adoption, according to the GSMA “Mobile Economy” report for Latin America.
But besides its strong public sector involvement, Medellin also has a lot to offer new businesses because of its location, said Erik Stettler, director of Socialatom Ventures, a venture capital and private equity firm that has invested in 35 start-ups across Latin America and has very strong operations in Medellin.
Much like San Francisco, Medellin boasts a mild climate and is relatively small in size, Stettler said.
“It’s a great physical place to live, there’s a great quality of life, a low cost of living and great sense of inclusion,” Stettler said.
“It is a smaller city than a lot of other start-up hubs in the rest of the world, but like the Bay Area, size isn’t the only thing that matters. What matters is the concentration of talent and the dynamic of how different parts interact with each other. It’s about how friendly is the environment in terms of how coherent are the developer groups, the public sector and the universities, and how comfortable it is in terms of the political climate.”
Viajala, which has less than 10 employees, has grown 30 percent every month for the last year in terms of revenue and is on trajectory for continued growth, said Stettler, whose firm is invested in Viajala.
“They are well on their way to becoming a huge company,” he said. “We will have some more pretty dramatic cases coming out of Medellin very soon.”