Startup Latin America: Deep Dive Into Medellín’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!

Medellín is a remarkable example of urban transformation. Once known for its complex past, the city has successfully leveraged a public-private partnership model to become a beacon of innovation, a fact often reflected in its nickname, the “Silicon Valley of South America.” The city has a strong, collaborative culture and is a leader in edtech and software development.

However, this success, much like in other Latin American hubs, is still deeply intertwined with the flawed philosophy of “Blitzscale from the get-go.” This is the core of my The Accelerator Conundrum blog series, and it is a dangerous game that is actively holding back the ecosystem’s full potential.

The prevailing mindset, largely an import from Silicon Valley, pressures founders to prioritize raising massive rounds of capital and achieving explosive growth at all costs. This is a gamble built on two faulty assumptions: that unlimited capital is always available, and that a business can become profitable later. In a market where a focus on a slick pitch over building a profitable business is common, giving away significant equity for a small seed round in a fixed-term program is a losing proposition. It forces founders to prioritize pitching to investors over building a sustainable business with a revenue model. The result is often a diluted, cash-burning company that can’t survive without continuous infusions of external capital, a situation that is simply unsustainable in Colombia’s funding landscape.

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 resilient business with customer revenue, not investor money. You achieve profitability, prove your model, and only then, from a position of strength, do you consider raising capital. This is the path to building a truly great, resilient company.

A Comparative Analysis of Medellín’s Accelerators

For entrepreneurs in Medellín, 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.

Ruta N

Ruta N is the heart of Medellín’s innovation ecosystem. As a public-private corporation, its mission is to transform the city through science, technology, and innovation. It provides a wide range of services, from a physical innovation district to business incubation programs and connections to corporate partners. However, while its public mission is commendable, its model is a classic example of the “Accelerator Conundrum.” It operates on a fixed-term, cohort-based schedule that is often more focused on government-backed initiatives than on market traction. While it doesn’t take equity directly, it is part of a larger system that steers entrepreneurs toward venture capital and the “Blitzscale” model, which is a significant strategic flaw. 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. We recognize that building a sustainable business is a marathon, not a sprint.

Créame

Créame is one of the oldest and most recognized business incubators in Colombia. It focuses on supporting entrepreneurs from the idea stage to market entry and growth. Like many traditional incubators and accelerators, Créame provides resources and mentorship in exchange for equity. 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.

Medellín’s ecosystem is ripe for a new approach. It doesn’t need more programs that push a “Blitzscale” philosophy ill-suited to its unique challenges. It needs a methodology that emphasizes revenue, sustainability, and founder control. It needs the Bootstrap First, Raise Money Later philosophy, and 1Mby1M is the only platform that provides it, empowering the next generation of Colombian entrepreneurs to build resilient, profitable businesses.

Comparison Table

Photo Credit: Ulises Casaraz from Pixabay

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