Contxto – You know your government really wants to push the entrepreneurial ecosystem when they’re pulling out all the stops to create a “Fund of Funds” for startups. Which is just what Colombian President, Iván Duque announced yesterday at an event in Bogotá.
In the presence of entrepreneurs, investors and government agencies, Duque told of the launch of US$38 million Fund of Funds. The purpose of it all is to encourage the development of alternative methods of financing for entrepreneurs and business owners.
Bancóldex, iNNpulsa Colombia, Colciencias, SoftBank and the Development Bank of Latin America (CAF) were the organizations who initially got the funding rolling.
For President Duque, entrepreneurs are the cornerstone of this Fund of Funds.
“I have always believed that society is transformed by entrepreneurship, by founders who courageously seek a higher purpose,” declared Duque.
Colombian fund of funds
So what’s gonna happen is this Fund of Funds will take in investments from interested third parties and then channel them towards Colombian investment funds. Then, these will make sure to channel the money to the startups and entrepreneurial projects that complete the requirements checklist. Speaking of requirements, like always there’s a catch or target audience.
This Fund of Funds is aimed particularly at projects and startups that can contribute to the Colombian President’s highly mentioned Economía Naranja or “Orange Economy.”
That’s to say businesses and projects from creative or cultural industries such as design, tech and software development. Furthermore, they must have projects or businesses that are scalable and show high growth potential.
But wait, there’s more.
The government also declared it’ll be opening an entrepreneurial hub called C-Emprende on December 4 in the Andean country’s capital. There, business leaders and entrepeneurs can meet and share experiences, stories and ultimately build a constructive buzz to spur innovation.
Looks like the Colombian government is really pulling out all the stops to make their startup ecosystem flourish. Makes me wonder, what will other LatAm governments do in response? Maybe a little healthy competition will push the region to new heights.