Panama, a country known for its remarkable natural biodiversity and rich cultural heritage, is also emerging as an ideal destination for tech startups. With its strategic location, robust infrastructure, and supportive business ecosystem, Panama offers numerous opportunities for entrepreneurs in the technology sector. In this blog post, we will explore why Panama is a great choice for tech startups and the advantages it provides.
Here are some key reasons why Panama stands out as a favorable environment for tech startups:
- Strategic Location: Situated at the crossroads of North and South America, Panama enjoys excellent connectivity with major cities around the world. This strategic location makes it easier for startups to establish global connections and expand their reach.
- Growing Economy: Panama has experienced significant economic growth in recent years, driven in part by its thriving services sector. This growth creates a favorable market for tech startups, as there is a growing demand for innovative solutions in various industries.
- Supportive Government Policies: The Panamanian government has implemented several policies to attract foreign investment and foster entrepreneurship. Startups can benefit from tax incentives, streamlined business registration processes, and access to funding programs aimed at supporting innovation.
- Infrastructure and Connectivity: Panama boasts modern infrastructure, including reliable internet connectivity and state-of-the-art technology parks. These facilities provide tech startups with the necessary resources to develop and scale their ventures.
- Skilled Workforce: Panama is home to a well-educated and skilled workforce, particularly in the fields of technology and engineering. This is growing due to skilled labor migrating from Brazil, Argentina, The United States and Europe.
- Networking Opportunities: The tech startup community in Panama is growing rapidly, with various networking events, conferences, and incubators fostering collaboration and knowledge sharing. Entrepreneurs can benefit from these opportunities to connect with like-minded individuals and potential partners.
- Quality of Life: Beyond its business advantages, Panama offers an exceptional quality of life. With its tropical climate, stunning landscapes, and vibrant culture, the country provides an attractive lifestyle for entrepreneurs and their teams.
With that in mind, here is the country’s portfolio of lucrative startups!
About PayCaddy
PayCaddy is a Panamanian fintech company which is dedicated to the development of tailor-made financial technology solutions for the optimisation of business processes. The fintech sees the development of digital infrastructure for Banking as a Service (BaaS) as an essential step to enable the new wave of financial products to come.
They were selected to participate in the 2022 Y Combinator Program. They have developed an intelligent payment gateway that enables interesting billing logic for other digital businesses. Their mission is to democratise access to financial technology so that organisations can launch their financial services in record time. From banks looking to go digital, to delivery companies, marketplaces, logistics, traditional retailers and others who need payment tools to generate or increase revenue.
Panadata
Panadata is a datamining company with a web portal to be used as a public research tool, which brings together in a single platform the most important consultation sites in Panama. It is a useful resource for both lawyers and journalists, as well as any other citizen wishing to investigate a company or person.
Notable investors include: Asymmetry Ventures, Y Combinator, Daniel Schryer
Munily
Munily is a software for building and condominium management. It provides communication and security solutions for communities. Through a mobile app, the platform is designed to connect management, residents and security guards.
Munily, in the midst of the pandemic, took off its operations not only in Panama, where it operates in 230 properties and residential communities, but also in Costa Rica and now in Colombia. In addition to that, it was accepted by the Y Combinator accelerator.
They have been able to create a community that informs and educates users on the subject through webinars and online training sessions with experts in the real estate industry and in legislation. They are looking to expand the service to other properties such as shopping centers and bodegas.
It’s investor list includes high profile entities; Expert Dojo, the Panamanian Government’s City of Knowledge, Opera Ventures, Y Combinator and Mayer Mizrachi.
Boxit
Boxit is a Panamanian automated logistics startup that allows users to purchase goods and items from external suppliers such as Amazon and Walmart, thanks to its network of smart lockers in different countries. It specialises in developing software and hardware to streamline the last-mile delivery process.
Boxit participated in the Google Launchpad programme. In June 2019, it was selected as one of the five finalists among 1,700 startups nominated for the Innovation Awards Latam.Boxit has strategic alliances with logistics companies such as Airbox Express, Virtual Mallbox and Krystal Express. The startup already operates in Mexico, Colombia and Brazil, thanks to its partnership with Malex Do Brasil to install lockers in its locations.
Cuanto
Cuanto (meaning how much) is aimed primarily at micro-entrepreneurs who have an online business through an online store or social media account. Merchants generate a link that they share with their customers through channels such as WhatsApp or Instagram and thus request payment. Its goal is to promote easy, fast and accessible payments, and the possibility for merchants to manage their venture online.
Currently, there are 400 small businesses using the application. They also received investment from Y Combinator. Cuanto is already in the process of expansion with beta versions in countries such as Guatemala and El Salvador. They are planning to enter Mexico and Ecuador.
Encuentra24
Encuentra24 is a marketplace born in Panama that has expanded to 9 countries. The last expansion came from the acquisition of OLX Panama, making it the only dominant marketplace in the country. This has led to them making paid-only listings in various categories like real estate or jobs, generating more revenue than marketplaces in other countries.
The site is easy to use and allows a faster connection between sellers and buyers in emerging markets such as Panama, El Salvador, Puerto Rico, Costa Rica, Dominican Republic, Colombia and Paraguay.
Zenpli
Through an API, Zenpli automates user data validation decisions for Latin American fintechs. This facilitates fraud prevention, improves conversion rates and eliminates customer friction.
Zenpli will launch its MVP in Mexico in Q2 2022. The core team consists of former employees of Independencia Asesores, La Haus, Addi, UBS and Panadata.
The solution generates an accurate and easy-to-understand risk score for each organisation. This allows good customers to be identified and risky ones to be rejected.
Adelantos
Adelantos is the first Fintech company in Panama that provides the possibility of accessing fast loans from US $50 to US $500. The solution offers practicality and speed to its users. They can access credits in less than 30 minutes, without waiting in line and without worrying about bureaucracy.
The founders of Adelantos have a track record in the financial and legal industry. In addition, Adelantos operates in Panama, Colombia, Mexico, Peru and Brazil. In 2022, they consolidated their partnership with Payjoy, a startup dedicated to financing the purchase of smart phones that employs some 90 people worldwide and operates in more than 10 countries.
Criptext
Created by Panamanian entrepreneur Mayer Mizrachi (also startup investor in Panama), Criptext is a key that locks every email you send. The service is more well known outside of the country than inside, but still, it is a pure Panamanian country that brings money into the local economy.
Comparable to Protonmail, Criptext is based on Signal and the base of the software is open source.