A few weeks ago, I was invited to facilitate a Startup Weekend in Cali. This was my fifth visit, but I had never had the chance to really get to know the city. This time, I decided to stay longer to explore and understand the entrepreneurial ecosystem of the so-called Sucursal del Cielo. Here’s what I discovered:
Historical glimpse of Cali
Cali is a unique city known for its culture, friendly people, great biodiversity, and strategic location. The city is recognized as the world capital of salsa, attracting tourism and fostering creativity and innovation in the artistic and musical scene.
Cali, Colombia’s most multicultural city and the main city in the southwest is a hub for 14 million people. Despite past political and social challenges, its infrastructure, business network, and connection to the global market have created a solid ecosystem that benefits surrounding cities.
The city is also emerging as a startup epicenter with examples like Rappi, Truora, Fanki, WEKall, VASS, and Cargaya with operations in Cali.
Cali and its role within the entrepreneurship ecosystem
KPMG’s Colombia Tech Report 2023-2024 states that the number of startups in Cali has grown, from 104 in 2023 to 134 in 2024, representing 8% of the total startups in the country. This growth has positioned Cali in 9th place in Latin America among cities with populations between 2 and 10 million.
Startups in Cali stand out in the following sectors:
- SaaS (Software as a Service)
- Business Management
- FinTech
- HealthTech
These industries are crucial for the local ecosystem and have the potential to scale and replicate in other emerging markets.
Sources of funding
The startup funding ecosystem in Cali has grown significantly, and today includes investment funds, angel investors, and financial support programs. Some of the funds and programs are:
- Investment Funds: Progresa Capital, Fondo Emprender, Andeo, SIMMA.
- Angel Investors: Red Pólux, Innpulsa Colombia
- Acceleration Programs: Valle Impacta, Startup Café, NIDO.
- Institutional Support: Cali Chamber of Commerce, Bancóldex.
In addition, there is a continuous effort to professionalize the funds and angel investors to increase the capital available for local startups.
Talent and culture
Cali is home to important universities in the country, such as Universidad Icesi and Universidad del Valle, which offer programs in technology and business.
“The collaborative ecosystem among universities, the private sector, and the government has created an environment where startups can thrive. This synergy facilitates access to resources, funding, support networks, and the possibility to test MVPs quickly. Zonamerica is a clear example of this development, as it generates synergies and resources necessary for startups” says Nicolás Peréz, founder and COO of Findink.
Contribution of corporates and companies in Cali
“The ecosystem faces a major challenge in boosting interactions between corporations. It needs greater awareness about the culture of collaboration and innovation management. between emerging and established entrepreneurs. Our large corporates need to adopt a more open and flexible mindset towards innovation, which involves being willing to collaborate with startups and adapt their internal structures and processes to facilitate this collaboration, as bureaucracy and rigidity often pose structural barriers,” comments Tatiana Manriquez, Co-Founder & Chief Relationship Officer at Sugar Valley, a Venture Studio.
“At Sugar Valley, we believe our existence is crucial to facing current challenges. Our purpose is to bring corporate innovation and startups closer together. In the coming months, we will undertake work in the HealthTech sector, one of the fastest-growing areas in our region. We will focus on raising awareness among corporates, creating connection spaces, and promoting education. In the medium term, we expect to see a boom in the creation of incubators, accelerators, corporate funds, and more company builders in the region,” adds Tatiana.
Sugar Valley seeks to professionalize the startup creation process as if it were a factory. Collaboration with Comfandi (a corporate) has been essential. Working closely, they leverage their extensive impact in areas such as education, health, well-being, and employment.
Institutional support
In recent years, the Chamber of Commerce has played an important role as an enabler, creating initiatives that promote the entrepreneurial ecosystem at the local and regional levels for Latin America, such as:
- Capital Summit: Event to attract venture capital investment. Capital Summit has consolidated around 1,000 business meetings and investment opportunities with over USD 2.3 million in venture capital.
- Red Pólux: A network of angel investors connecting high-impact ventures with venture capital entities. Red Pólux has formed 35 angel investors who have been presented with 200 startups, mobilizing more than USD 1.3 million in investment.
“Currently there is a collaboration between the Government of Valle del Cauca, the Mayor’s Office of Cali, and the Cali Chamber of Commerce that led to the creation of the NIDO initiative, which will have strategic allies who will provide specialized training and support to TIC entrepreneurs such as Andrés Bilbao, co-founder of Rappi and Founder of Makers; Santiago Sardi, CEO of Imaginamos, the company that incubated Rappi and Chiper; and Felipe Santamaría, co-founder of Rockstart Latin America. Through this initiative, we aim for tech-based ventures to grow, expand, generate employment, and improve the well-being of our region. Similarly, NIDO aims to attract entrepreneurs who left the state and the country, showing them that Cali and its municipalities offer ideal opportunities to invest and grow,” comments Vivian Argueta, Manager of Transformation and Future Intelligence at the Cali Chamber of Commerce.
Factors attracting entrepreneurs to Cali
“Cali stands out for the authenticity and hospitality of its people. It is a city where you can quickly establish personal and professional connections. Additionally, it has a very connected and powerful international diaspora, which is an advantage for attracting investments and representative value networks. Its connection to the Pacific market and the attention from countries like Korea, Japan, and Singapore represent great opportunities for development” comments Santiago Gómez, CEO of Trulab.
Other factors to consider about Cali that can benefit and attract both talent and startups are:
- Strategic Location and Economy: Cali’s proximity to the port of Buenaventura, the country’s main foreign trade port, is a significant strategic advantage. This facilitates international trade and attracts over 200 multinationals, consolidating Cali as an industrial and commercial epicenter. Its diversified economy in sectors such as agribusiness, commerce, and services, along with its role as a logistics hub, position it as a competitive city nationally and internationally.
- Infrastructure and Free Zones: Cali has solid and constantly improving infrastructure. The city has 11 free zones, including 5 Permanent Free Zones and 6 Special Permanent Free Zones. These zones offer tax and customs incentives that attract foreign and national investment. Zonamerica, one of the free zones, provides advanced infrastructure to host startups, with 35 companies installed, both foreign and national investments.
- Education and Talent: Cali is home to 23 higher education institutions, including Universidad Icesi and Universidad del Valle, which rank in the top 100 of the QS World University Ranking for Latin America in 2023. These institutions are focused on promoting research and innovation, helping develop qualified talent that feeds the entrepreneurial ecosystem. Cali’s cultural diversity and rich heritage in music, dance, and art contribute to a creative environment that inspires innovation.
- Cost of Living and Accessibility: One of Cali’s competitive advantages compared to Bogotá and Medellín is its lower cost of living. This economic accessibility attracts startups and entrepreneurs seeking a conducive environment for growth without the high costs associated with large cities. Additionally, Cali offers access to world-class talent at a more affordable cost, which is a significant advantage for new companies.
What’s Next for Cali in the Coming Years
Currently, when one talks about entrepreneurship and startups in Colombia, the cities that come to mind are Bogotá and Medellín. However, after spending several weeks in Cali, I can say that this city is emerging as a new hub of innovation and entrepreneurship. Conditions are being set for Cali to become an attractive place for both entrepreneurs and investors.
Additionally, Cali’s infrastructure, accessibility, and lower cost of living compared to Bogotá and Medellín make it a very competitive option. With the continuous support of public and private entities and the collaborative spirit of its people, Cali is well-positioned to become an innovation hub not only in Colombia but throughout Latin America.
This post is also available in: Español (Spanish)
