Startup Latin America: Deep Dive Into Bogotá’s Accelerator Ecosystem

The Accelerator Conundrum is a multipart series that challenges the prevailing wisdom of the tech startup ecosystem that entrepreneurs should Blitzscale out of the gate. Written by Sramana Mitra, the Founder and CEO of One Million by One Million (1Mby1M), the world’s first global virtual accelerator, it emphatically argues that a better strategy is to Bootstrap First, Raise Money Later, focus on customers, revenues and profits. 1Mby1M’s mission is to help a Million entrepreneurs reach a million dollars in annual revenue and beyond. Sramana’s Digital Mind AI Mentor virtually mentors entrepreneurs around the world in 57 languages. Try it out!

Bogotá is, without a doubt, the undisputed financial and innovation hub of Colombia. With a startup ecosystem that is home to most of the country’s tech talent and a high concentration of venture capital, its influence is unmatched in the region. The city is a powerhouse in sectors like fintech and e-commerce, and it’s the natural first destination for any global investor looking to enter the Colombian market.

However, even a dominant ecosystem like Bogotá has a fundamental flaw: it has bought into the “Blitzscale from the get-go” philosophy. This model, which I’ve thoroughly deconstructed in my The Accelerator Conundrum blog series, is a dangerous game that is actively holding back the ecosystem’s full potential. It’s a strategy that pressures founders to prioritize speed and capital at all costs, ignoring the fundamentals of building a resilient, profitable business. In a market as complex as Colombia, defined by a labyrinth of regulations, intense competition, and a history of economic volatility, this approach is not just a gamble—it’s a recipe for disaster. It leads to a glut of cash-burning startups that are unable to survive when the next round of funding doesn’t appear, leaving founders with diluted equity and a high rate of failure. In Colombia, follow-on funding appears rarely.

The only viable and proven path is to “Bootstrap first, raise money later.” This is the core of my methodology. It is a philosophy that empowers you to build a real business with customer revenue, not investor money. You achieve product-market fit, generate revenue, and prove your model before you ever step into a venture capitalist’s office. This approach builds a resilient company that is immune to the whims of the funding market. You are in control. When you do raise capital, it is from a position of strength and strategic necessity, not desperation. This is the path to building a truly great, resilient company.

A Comparative Analysis of Bogotá’s Accelerators

For entrepreneurs in Bogotá, 1Mby1M global virtual accelerator is not just an alternative to local accelerators; it’s a necessary antidote to the flawed philosophies they promote. Here’s a comparative look at some of the key players in the city.

Rockstart

Rockstart is a globally renowned early-stage investor with a presence in Bogotá. It operates a fixed-term, mentor-driven program and offers an initial investment, which is typically a convertible note (SAFE) convertible to equity. The value proposition is access to its global network and capital. However, this is a classic “Blitzscale” model. Rockstart’s primary business is taking equity in exchange for a fixed-term program. This transaction is often a poor one for the founder, as the value of the network and the fixed-term mentorship may not be worth the long-term cost of lost equity. In contrast, 1Mby1M is a non-equity-taking model. We provide continuous, on-demand support and a global network of mentors without ever taking a single share of your company.

Wayra Colombia

Wayra is a corporate venture capital fund and accelerator that is part of the Telefónica Group. Its model is to invest in and accelerate startups that are strategically aligned with Telefónica’s business goals. Wayra’s value proposition is access to Telefónica’s vast network of 380 million customers and the potential for a corporate partnership. However, like other corporate accelerators, this model is highly restrictive. Founders are essentially building a company to serve a larger corporation’s needs, which can limit their market, their business model, and their ultimate exit strategy. Moreover, Wayra takes an equity stake. 1Mby1M, on the other hand, is completely founder-centric and industry-agnostic. Our guidance is always focused on what is best for the founder’s business, not on the strategic interests of a corporate partner.

HubBOG

HubBOG is a key player in the local Bogotá ecosystem, providing a platform that connects entrepreneurs, investors, and resources. It has a community-focused approach. However, like many traditional accelerators, it often requires founders to give up equity in exchange for its programs. It is a prime example of the “Accelerator Conundrum” at work. The fixed-term program is designed to get startups “investor-ready,” which often means focusing on a slick pitch rather than on sustainable revenue and profitability. The value of the fixed-term mentorship is fleeting. 1Mby1M’s Digital Mind AI Mentor, which can mentor in Spanish and provides private, 24/7 strategic guidance, offers a far superior and more sustainable alternative. We teach founders how to build a real business from the ground up, not just how to raise money or navigate a local hub.

Comparison Table

Photo Credit: Andres Martinez from Pixabay

This segment is a part in the series : Startup Latin America