Ciudad del Saber – City of Knowledge, in English – reaffirms its role as a driver of innovation in Latin America, reporting an annual investment of over US$4 million into support programs for startups. This expenditure not only strengthens the entrepreneurial ecosystem, but also boosts the creation of technological and social solutions with global impact, says Cristina Collazos, manager of startup programs at the Ciudad del Saber Foundation.
In addition to its overall investment, the Panama-based innovation hub allocates direct resources to the projects with the greatest prospects. Each selected initiative receives between $25,000 and $50,000, capital that allows them to accelerate their development, strengthen their business models and expand their reach in international markets.
With these actions, Ciudad del Saber is positioned as a Latin American benchmark in incubation and scaling of startups, offering not only funding, but also access to a network of mentors, investors, and strategic allies that enhance the growth of emerging companies.
“What was once a U.S. military base was transformed into a technology park where universities, research centers, private companies and entrepreneurs coexist. This reconversion generated an ecosystem that today is committed to science, technology and human development projects,” Collazos told Contxto.
The incubation program accompanies early-stage entrepreneurs for four months. Today, 59 local startups are participating, seeking to establish business models and design plans for sustainable growth, says Collazos.
Boosting Panamanian startups
Funding for startups does not end there. Entrepreneurs can also access Panamanian government funds from the National Secretariat of Science, Innovation and Technology (SENACYT), which grants non-refundable resources of up to US$175,000 for science and technology-based projects.
“Added to this boost is the Venture Club Latam, a private fund that invests tickets ranging between $100,000 and $300,000 in Panamanian and Latin American startups. With this, Panama begins to connect its entrepreneurial ecosystem with regional capital,” said Collazos.
She highlights that investors value three factors:
- Innovative solutions
- Ability to scale
- Prepared teams
Without these conditions, it is difficult for a project to obtain financing, explains the startup programs manager.
Financing has its challenges
While Panama has available capital, startups are constrained by cultural hurdles within the investment landscape, according to the Ciudad del Saber official. She notes that most investments are concentrated in real estate and traditional sectors and that limited openness to risk limits the expansion of the ecosystem.
At the Central American level, Collazos stresses that the local market is too small to grow aggressively. Therefore, startups must think from the beginning in terms of regional and global solutions. This approach is already beginning to transform the way investors and entrepreneurs conceive the region.
Another pending challenge is the absence of a Central American unicorn. Although there are solid projects, there is yet to be a success story that creates a narrative of a before and after for the region’s tech scene. To achieve it, entrepreneurs must combine global ambition, hunger for risk and openness to failure.
The Ciudad del Saber is betting that this cultural change will drive the next generation of Central American startups. With strategic financing and regional vision, Panama seeks to position itself as a key hub for innovative entrepreneurship in Latin America.
Add a comment
