From public policies to real-world success stories, discover how targeted government action is transforming Latin America’s startup landscape.
You know, when we talk about innovation and tech hubs, our minds often jump to Silicon
Valley or London. But here’s a secret: there’s an incredible entrepreneurial buzz happening
right now in Latin America, and two countries, Colombia and Chile, are really leading the
charge. This isn’t just a happy accident; it’s the direct result of some serious heavy lifting by
their governments, who’ve poured energy into smart policies and crucial funding. They’ve
realized that startups, especially in vital areas like healthcare, agriculture (agritech), and
education (edtech), aren’t just cool — they’re absolutely essential for the future. In this
piece, we’ll dive into how government support is genuinely fueling startup growth in these
key sectors in both countries. We’ll also highlight some fantastic success stories that really
bring this dynamic relationship to life.
Setting the Stage: How Governments Create a Welcoming Environment
Think of it like this: before you can plant a garden, you need good soil. Both Colombia and
Chile have been busy preparing their soil with broad policies designed to attract
investment, cut down on red tape, and simply make it easier to innovate.
Chile’s Big Idea: Start-Up Chile and Its Ripple Effect
Chile really stands out as a pioneer here. Back in 2010, they launched Start-Up Chile, a
program that was initially about drawing international talent but quickly grew to support
Chilean entrepreneurs too. It’s truly helped create a national culture that champions
innovation.
Start-Up Chile offers more than just money (like around $100,000 USD, equity-free, for its
Growth program); it provides mentorship and access to a powerful network, taking a lot of
the early risk out of starting a business. They even have a “Female Founder Factor” which
shows their commitment to diversity in the startup world.
While it supports all kinds of businesses, its existence definitely boosts the overall pool of
innovative ventures and expertise, which benefits specific sectors in turn.
Colombia’s Entrepreneurial Drive: iNNpulsa and National Plans
Colombia hasn’t been sitting idle either. Their innovation and entrepreneurship agency,
iNNpulsa Colombia, is a huge player. They provide funding, training, and networking
opportunities for startups. Colombia’s National Development Plan consistently puts
innovation and technology at the forefront, creating a friendly environment for businesses
and encouraging partnerships between the public and private sectors.
In fact, the “Colombia Tech Report 2024” tells us that Colombia is third in Latin America for
raising capital – that’s a pretty clear sign of its growing appeal to investors, largely thanks to
government support.
Targeted Support: Healthcare, Agritech, and Edtech Get a Boost
While a good general environment is key, specific policies and funding for certain sectors
supercharge their growth.
Healthcare: Healing with Tech and Expanding Access
Healthcare in both Colombia and Chile offers huge opportunities for innovation. We’re
seeing more money spent on health, populations getting older, and a big push for better,
more accessible care. Governments are increasingly looking at digital health solutions to
make this happen.
Colombia’s Health Focus
Colombia’s Ministry of Health and Social Protection has a clear goal: make their healthcare
system more sustainable and improve its quality. While direct government funding for
individual healthtech startups often flows through broader innovation programs or
international collaborations, the government’s commitment to modernizing healthcare
creates fertile ground for new solutions.
For example, a World Bank-supported program, “Improving Quality of Health Care Services
and Efficiency in Colombia” (with a hefty $187.6 million in funding), aims to boost overall
healthcare infrastructure and service delivery. This directly creates demand and
opportunities for innovative startups.
A Colombian Healthtech Success Story: 1DOC3
Take 1DOC3 from Colombia. This e-health platform connects Spanish-speaking users with
licensed doctors. While not solely government-funded, the country’s rising digital literacy
and the government’s push to expand healthcare access, especially to underserved
communities, have created a perfect market for a solution like this.
1DOC3’s success in reaching a broad audience, even those without internet access via SMS,
really shows how digital innovation can complement public health efforts. The general
government support for the tech ecosystem, including iNNpulsa’s initiatives, definitely
provides a crucial foundation for ventures like 1DOC3 to grow.
Chile’s Healthtech Scene
Chile’s healthcare system is also on the hunt for innovations to tackle its challenges. While
specific government-funded healthcare startup programs aren’t as widely known as
broader accelerators like Start-Up Chile, the country’s overall pro-innovation stance and
increasing adoption of digital tech create a welcoming market.
An Emerging Chilean Healthtech: Bifidice
A fascinating Chilean healthtech example, though perhaps leaning more into biotech, is
Bifidice. This startup developed a probiotic ice cream designed to improve gut health and
help with allergies. While we don’t have explicit details on their direct government funding,
the fact that a company like Bifidice, pushing boundaries in health-related products, exists,
suggests a supportive environment for novel health solutions. They likely benefit from the
wider innovation ecosystem and possibly specific scientific grants from the government.
Chile’s Agritech Leadership
Chile is really stepping up as a regional leader in agritech. This is driven by its diverse
agricultural base (especially fruit production) and a strong focus on managing water
resources. The Chilean government has put policies in place that promote foreign
investment and the adoption of new technologies in agriculture.
Organizations like AgroTech Chile, an association of over 70 companies, highlight how the
government helps foster this ecosystem. The Ministry of Agriculture’s goal to “Position Chile
as a provider of quality and sustainable food” and its investments in projects to reduce
water usage directly create a need for agritech solutions.
Let’s look into some Chilean Agritech Success Stories: AgroUrbana and
Wareclouds (with an Agritech Twist)
AgroUrbana, a vertical farming company in Chile, is a great example of agricultural
innovation getting support. While we might not see specific government funding details for
every startup, companies like AgroUrbana, focused on advanced, sustainable technology,
perfectly align with Chile’s national agricultural goals. They likely benefit from the broader
innovation ecosystem and possibly specific agricultural innovation grants.
Then there’s Wareclouds, an interesting case. While primarily a logistics startup that uses
idle spaces for e-commerce storage and delivery, its application could easily extend to
agricultural produce, helping farmers connect more efficiently with consumers or
distributors. This shows how general innovation programs, like Start-Up Chile (which
supported Wareclouds), can indirectly foster solutions relevant to the entire agritech
supply chain.
Colombia’s Agritech Potential
Colombia, with its significant coffee and flower industries, has huge potential for agritech.
The government’s focus on improving logistics and promoting sustainable practices creates
a ripe environment. While large, direct government funding for individual agritech startups
isn’t as explicitly documented, iNNpulsa’s general support for scalable tech businesses
definitely includes those in the agri-food sector.
Edtech: Focus is on making Learning Accessible and Engaging
Education in both countries faces challenges with access, quality, and adapting to the digital
age. Governments are embracing technology to tackle these issues, creating a strong
demand for edtech solutions.
Colombia’s Edtech Initiatives
The Colombian government, through its Ministries of ICT and Education, is actively pushing
edtech. Think about their rural connectivity project, aiming to connect over 14,000 schools,
or platforms like “Colombia Aprende,” offering educational resources to millions.
Programs like “Computadores para Educar” (Computers to Educate) have focused on
getting devices into students’ hands, especially during remote learning. A significant
investment under the “Technologies for Learning” proposal aims to improve tech access for
children. These policies directly stimulate the market for edtech solutions.
Colombian Edtech Success Stories: BabySpark and Tarefa
Colombian edtech startups like BabySpark, a mobile platform for tracking child
development, and Tarefa, which connects students with certified teachers online, clearly
show the impact of this governmental focus. BabySpark even won “Most Promising Latin
American Startup” at the 2018 Global EdTech Startup Awards, highlighting the quality of
innovation coming out of Colombia’s edtech scene.
These companies directly help the government achieve its goals of improving educational
outcomes and access, benefiting from better digital infrastructure and the growing demand
for online learning tools.
Chile’s Edtech Landscape
Chile understands the importance of digitalizing its schools. While the integration of EdTech
companies can sometimes be a bit fragmented, government initiatives, often partnering
with private companies, aim to reduce educational inequality and improve learning through
technology.
Start-Up Chile, as a general accelerator, is also open to edtech startups, offering that
valuable equity-free funding and mentorship.
Chilean Edtech Examples (Benefiting Indirectly)
Though direct, large-scale government funding for individual edtech startups beyond
general accelerator programs isn’t always detailed for Chile, the government’s overall
commitment to digital education and improving access to technology indirectly helps the
edtech sector thrive.
The focus on closing the digital divide, especially during the pandemic with initiatives to
provide educational materials through various channels, creates a welcoming environment
for edtech solutions that can use existing or new infrastructure. The presence of
international grants, like the Mastercard Foundation EdTech Fellowship also targeting
South America and Start-Up Chile, further indicates a supportive environment for edtech in
the region.
It’s All Connected: Policy, Funding, and the Startup Ecosystem
- Investor Confidence: Business-friendly laws and reforms, like those in Colombia, lower
risks for venture capitalists, making it easier for startups to get private funding. - Talent Pool: Governments invest in education and skills, ensuring there’s a steady
stream of talent for tech startups. This means promoting science, technology,
engineering, and math (STEM) and digital literacy. - Networking and Mentorship: Government-backed accelerators and programs help
connect startups with mentors, investors, and potential customers – providing
invaluable guidance. - Going Global: Programs like Start-Up Chile encourage startups to look beyond their own
borders, opening doors to global opportunities. - Testing Grounds: Sometimes, governments even explore “regulatory sandboxes,”
especially for fintech and healthtech. These allow innovative solutions to be tested in a
controlled environment, fostering innovation while managing potential risks.
What’s Next? Challenges and a Bright Future
Of course, it’s not all smooth sailing. Getting enough capital, especially to scale up after
initial funding, can still be tough. Local investors might also be a bit more cautious than
those in more developed tech hubs. And ensuring everyone has equal access to technology
and digital skills is still a big job, especially for edtech and healthtech to truly make a
difference for everyone.
But despite these hurdles, the future for startup growth in Colombia and Chile, particularly
in healthcare, agritech, and edtech, looks incredibly bright. The ongoing commitment from
their governments, through consistent policies, dedicated funding, and a focus on building a
strong entrepreneurial ecosystem, points to a future where these nations won’t just be
regional leaders in innovation but will also make significant contributions to global
advancements in these crucial sectors.
The success stories we’re seeing are powerful proof of how smart government intervention
can genuinely fuel and sustain startup growth, leading to economic development and a
better quality of life for everyone.
The bottom line
A common thread in Colombia and Chile is their targeted approach. They’re not trying to
build everything at once—they’re focusing on pain points that resonate locally and globally.
In agritech, this means solving issues related to climate change, irrigation, and food security.
In healthcare, it’s about digital access and affordability. And in edtech, it’s closing the
education equity gap, especially post-pandemic.
Now, when you look north—to the U.S. and Canada, for example—the contrasts are
interesting. North America has way more venture capital, that’s no secret. But often, that
capital chases scale and exits over impact. Governments in the U.S. and Canada do support
startups through tax incentives and innovation hubs, but there’s a heavier reliance on the
private sector to drive growth. In contrast, I feel Colombia and Chile are more hands-on,
guiding and shaping ecosystems rather than just enabling them.
Another key difference? North American startups often get lost in hyper-competitive,
saturated markets. In Colombia and Chile, there’s still so much “problem space” left to solve.
That means entrepreneurs have room to create meaningful change without immediately
worrying about a dozen copycats or billion-dollar giants swooping in.
In conclusion, I think Colombia and Chile are writing a new chapter in South America’s
startup story. Their governments aren’t just setting policies—they’re rolling up their
sleeves and co-building ecosystems that support both local innovation and global reach. For
founders with a mission in healthcare, agritech, or edtech, these countries aren’t just
options—they’re opportunities.
For more insights and updates on global business trends, visit www.nextbusiness24.com
Written by Shashank Sharma, Industry Expert
10-year industry specialist in U.S. tax, IT, recruitment, and renewable energy. Expert in business strategy and certified professional skills trainer.
