Guatemala

The Guatemalan entrepreneurial ecosystem presents a good mix of experienced founders, resources, an educated workforce and a growing tech industry. The multiplier effect caused by the successes of Guatemalan founders in international settings is influencing traditional players to invest in the Guatemalan startup ecosystem. Recently, the creation of more refined support programs and the government working actively to coordinate efforts in the entrepreneurial ecosystem have led to a new generation of more sophisticated startups with growth potential.

Nevertheless, the country still faces several macro challenges, such as inequality, corruption, malnutrition and criminality. Interestingly, this is what provides an extra “edge” to Guatemalan born startups: They’re always seeking innovative ways to solve human and social issues that affect bottom of the pyramid (BOP) populations and have enormous expansion potential all over the world. Plus, prototypes and MVPs can be developed at competitive costs as the country has enough critical mass to make pilots representative without breaking the bank. Regarding opportunities, healthcare, insurance, logistics and tourism are interesting fields where startups are dabbling. With an average of 2M tourist visits per year, the hospitality industry presents a clear business opportunity for economic growth.

The startup ecosystem is at a tipping point. Building a critical mass of investable ventures is key to harvest the exponential potential and the resources that exist in the country. There is money to be invested, and investors, but trust needs to be built between them and entrepreneurs, creating a two way street of education on startup investment.