The Importance of Seed Capital for Bolivia’s Economy.

In recent decades, Latin America has witnessed a surge in the creation of startups—innovative and tech-driven companies seeking to carve out a space in the global market. Startups are vital due to their capacity for economic and social transformation, acting as drivers of innovation in key sectors such as technology, health, finance, and education. Countries like Brazil, Mexico, Chile, and Argentina have implemented various initiatives to promote these emerging businesses. However, access to early-stage funding remains one of the biggest challenges for entrepreneurs in the region.

Seed capital is one of the primary tools to support startups during their early stages. This type of funding provides entrepreneurs with the resources needed to develop their ideas, validate their products, and prepare for scalability.

In Latin America, while seed capital has grown in recent years, its distribution remains uneven. This type of investment helps address disparities, create genuine employment opportunities, and leverage regional resources.

In Bolivia, for example, the entrepreneurial ecosystem is still developing, with limited access to seed capital. However, organizations like SOLYDES Foundation are working to change this landscape by supporting tech startups with high growth potential.

The Role of Seed Capital in the Entrepreneurial Ecosystem

Seed capital is essential for startups to take their first steps. It represents an initial injection of resources that allows entrepreneurs to validate their products, create prototypes, and launch commercial operations. Unlike later-stage investments, seed capital targets companies that have yet to establish a strong market presence but show significant growth potential.

In Latin America, seed capital is a key factor in the emergence of disruptive tech companies. According to a report by ECLAC and the United Nations, 2,301 startups were identified in LATAM in 2023, reflecting steady growth in the entrepreneurial ecosystem. Countries like Brazil and Mexico lead the region in the number of startups, followed by Argentina and Chile.

In Bolivia, the 2023 Digital Technology Ecosystem Mapping identified 147 startups, showcasing the growth of this ecosystem. Compared to the 2022 Mapping, where the fintech sector represented 10%, its share grew to 30% in 2023, becoming the most prominent sector. This growth reflects the sector’s rapid expansion, driven by the adoption of tech solutions in finance and the need for a conducive environment for sustainable development.

Seed Capital in Bolivia

Despite Bolivia’s local talent and increasing adoption of technology, its startups often struggle to secure the necessary capital to scale their operations. This is a common issue in many developing countries, where capital markets tend to be risk-averse.

The availability of seed capital in Bolivia is limited, restricting the growth opportunities for many promising startups. However, this situation also presents opportunities. The creation of new investment funds and acceleration programs is beginning to foster a more robust entrepreneurial ecosystem. In this context, SOLYDES Foundation plays a key role in fostering entrepreneurship in Bolivia, providing seed capital and strategic support to tech startups.

SOLYDES Foundation: A Constant Commitment to Entrepreneurship in Bolivia

SOLYDES Foundation is a driving force behind Bolivia’s economic and social development, pioneering microfinance in Latin America since its establishment in 1986. Over the years, the foundation has evolved, expanding its focus to the tech ecosystem with initiatives such as SOLYDES Aceleradora and Escalatec, which aim to empower and support Bolivian entrepreneurs.

Supporting the Growth of Tech Startups

Launched in 2019, Solydes Aceleradora is a program designed to support Bolivia’s tech startups. This growth-oriented initiative offers personalized assistance, including expert advice, mentoring, coworking spaces, and a network of potential investors and clients.

Through its accelerator, SOLYDES Foundation has helped dozens of startups overcome initial barriers and scale their operations both within Bolivia and across the region.

The program works with up to 10 startups per cycle, selected through a rigorous competency-based process. During the three-month program, startups receive training in key areas such as marketing, impact management, leadership, and capital attraction. Additionally, the program places a special emphasis on women entrepreneurs, offering specific mentorship to strengthen their role in the business ecosystem.

Escalatec: Bolivia’s First Venture Capital Investment Society

Alongside its accelerator, the foundation launched Escalatec, Bolivia’s first venture capital investment society. Escalatec focuses on early-stage investments in tech startups. Unlike other investment funds, it supports startups throughout their expansion process, connecting them with local and regional clients and investors.

Escalatec prioritizes investments in key sectors like fintech, edtech, healthtech, SaaS, e-commerce, and agrotech. Selected startups must demonstrate product-market fit, market traction, and a committed team. Moreover, Escalatec seeks founders with a clear vision and the ability to execute expansion strategies across Latin America.

Since its inception, Escalatec has strengthened Bolivia’s tech ecosystem and provided access to venture capital for emerging entrepreneurs. This approach has positioned it as a key player in seed capital investment in the region, driving the growth of startups with the potential to make a significant impact in Bolivia and beyond.

SOLYDES Foundation's Impact on the Entrepreneurial Ecosystem

The work of the SOLYDES Foundation, both through its accelerator and **Escalatec**, has had a significant impact on the Bolivian entrepreneurial ecosystem. According to the 2023 ICT Mapping, in the last five years the startup ecosystem in Latin America has been stable, with more than half concentrated in Fintech (30%), Edtech (14%), and eCommerce/Marketplace (14%). The growth of Fintech responds to the demand for financial solutions, while Edtech has advanced with digitalization in education.

In the last three years, B2B startups have increased, while B2G startups have maintained a constant participation of 6%, reflecting collaboration with the public sector. Given this landscape, the growth of technological startups not only generates new employment opportunities but also drives the diversification of the Bolivian economy. Through innovation, these companies are solving industrial, social, and environmental problems, generating positive impact in key areas such as education, health, and finance. In this scenario, SOLYDES Foundation has managed to consolidate itself as an engine of change, providing the necessary support for Bolivian startups to compete at regional and global levels.

Seed Capital: An Investment in the Future

Seed capital is vital for the development of early-stage startups. In Bolivia, access to this type of funding has traditionally been limited. However, initiatives like Solydes Aceleradora and Escalatec are paving the way for more Bolivian entrepreneurs to access the resources needed to scale their operations and create a significant impact in Latin America.

As Bolivia's entrepreneurial ecosystem continues to expand, SOLYDES Foundation will remain a pivotal force in promoting seed capital and strengthening innovative startups with the potential to transform the country's and the region's economy.

For more information about how SOLYDES Foundation supports entrepreneurs in Bolivia, visit our website or contact us via email at: info@solydes.org