Colombia positions itself as Latin America’s prime destination for foreign entrepreneurs in 2025, with Bogota capturing 105 investment projects worth US$284 million and Medellin advancing 41% in global startup rankings, making them the best cities to start a business in the country. These cities offer low costs, innovation clusters, and visas that ease entry for outsiders. Such strengths matter for Colombians, as foreign capital creates over 10,000 jobs a year.
The 2025 Indice Subnacional de Emprendimiento ranks 23 cities on 58 indicators in eight pillars, from funding to knowledge. Bogota leads at 6.09/10 points. Medellin follows closely with 5.78. No hub dominates fully. Those figures reveal structural edges for foreigners seeking scale.
Foreign capital targets Colombia’s best cities to start a business
Global investors poured US$284 million into Bogota projects in 2024, generating 8,200 jobs mainly in services and retail. United States firms led at 28.6%, followed by Spain (9.5%) and Mexico (8.6%). Medellin certified 24 initiatives for US$150.58 million and 1,759 positions via ACI Medellin.
Barranquilla attracted US$551 million, Cartagena US$485 million. These flows stem from strategic locations and pro-business policies. Foreign entrepreneurs favor Colombia’s 4.8% unemployment and startup visas. That pattern underscores investor confidence amid regional volatility.
To verify these claims, agencies such as Invest in Bogota track origins and sectors. North America and Europe dominate. Meanwhile, Medellin’s Ruta N hosts 210 international firms. The evidence points to a broader pattern of diversified hubs.
Bogotá es la ciudad que produce la mayor cantidad de emprendimientos. Además, sólo la capital aporta el 24% del PIB y con la región sumaría el 32%.
— Impacto TIC – Nextwork360 Latam (@ImpactoTIC) March 4, 2020
Hoy hablaremos de #BogotáEmprendedora con @investinbogota @DesEconomicoBog @InnpulsaCol @bictia @camaracomerbog 👇 pic.twitter.com/ulZiuWgMTX
Innovation drives appeal for outsiders
StartupBlink’s 2025 index places Bogota 62 worldwide, third in LatAm behind São Paulo and Mexico City. Medellin jumps to 145, surpassing Rio de Janeiro. Colombia ranks 36 globally, with 1,860 active startups, up 22.3%. Manizales tops ISEM knowledge pillar via research groups and patents.
Foreign founders value English in business circles and nomad visas. Medellin scores 7/10 for foreigner friendliness, with expat communities easing integration. Bogota offers tax breaks for tech. Bureaucracy lingers, however.
Manizales scores 4.85/10 overall, fifth nationally, but financing lags at 2.31/10 and 15 place. Venture rounds stay below 1.0. Experts such as Fernando Cortes of Fundación Bolivar-Davivienda note that no city excels everywhere. Ana Fernanda Maiguashca of Consejo Privado de Competitividad urges funding fixes. Even so, structural market barriers limit scale.
Funding gaps temper optimism
Colombia’s ecosystems grow, yet financing constraints foreign ventures. Manizales formalizes microbusiness well but lacks capital funds. Bogota raised US$354 million across 70 deals in 2024, anchored by unicorns Rappi and Habi. Medellin’s VC scene develops via accelerators such as Rockstart.
Skeptics highlight informal sectors and data gaps, per Universidad del Rosario’s Ana Isabel Gomez. Government programs aid, but experts call for venture tax incentives. In reality, low costs offset hurdles for bootstrapped foreigners. Those gaps explain why scale-up lags peers. This will test Colombia’s ambition.
Colombia’s entrepreneurial edge ahead
The truth is, Colombia’s cities blend affordability and policy to lure global founders. Bogota and Medellin lead with investment and rankings. Manizales adds innovation depth.
To this day, foreign inflows build jobs and tech transfer. Medium-term policy choices on visas and funds will decide if Colombia rivals São Paulo fully. Institutions lsuch as Ruta N offer promise. Citizens gain from diversified growth.