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Startup winter: when will the rough patch end and what to expect in Colombia?

2022 represented a challenging year for many Colombian startups as many principles in the ecosystem had to be rethought, and growth formulas that were considered infallible began to show inconsistencies in their foundations, resulting in a wave of layoffs, the contraction of certain businesses and the regrettable closure of others.

This situation was driven by the unavailability of risk capital and adverse borrowing conditions, as central banks opted for higher interest rates, in some cases at record levels, to contain the out-of-control inflation that followed the pandemic.

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