Klein-Venedig (Little Venice) was the most significant territory of the German colonization of the Americas, from 1528 to 1546, in which the Welser banking family of Augsburg obtained colonial rights in the Province of Venezuela in return for debts owed by Charles I of Spain. The primary motivation was the search for the legendary golden city of El Dorado. The venture was led at first by Ambrosius Ehinger, who founded Maracaibo in 1529. After the deaths of Ehinger (1533) and then his successor Georg von Speyer (1540), Philipp von Hutten continued exploration in the interior, and in his absence from the capital of the province the crown of Spain claimed the right to appoint the governor. On Hutten's return to the capital, Santa Ana de Coro, in 1546, the Spanish governor Juan de Carvajal had von Hutten and Bartholomeus VI. Welser executed. The emperor Charles I revoked Welser's charter.

Welser transported to the colony German miners, and 4,000 African slaves as labor to work sugar cane plantations. Many of the German colonists died from tropical diseases, to which they had no immunity, or hostile Indian attacks during frequent journeys deep into Indian territory in search of gold.

Bartholomeus V. Welser was the head of the banking firm of Welser Brothers, who claimed descent from the Byzantine general Belisarius. They possessed great riches, and Bartholomeus was created a prince of the empire and made privy councillor to the emperor Charles V, to whom he lent large sums. For the repayment of these debts the Emperor (also King of Spain) granted, in 1527, the newly discovered Province of Venezuela. The Welser were obligated to conquer the country at their own expenses, enlist only Spanish and Flemish troops, fit out two expeditions of four vessels, and build two cities and three forts within two years after taking possession. As Venezuela was reputed to contain gold mines, he later obtained permission to send out 150 German miners. Heinrich Ehinger and Hieronymus Sailer, either independently or as agents of the Welsers, negotiated the rights.

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