Biotechnology is already the largest deep tech vertical in Latin America by company count. The IDB’s mapping put it at 61% of institutionally funded deep tech startups, 35% of capital raised and 42% of ecosystem value.

Over the past decade, breakthroughs in these fields have set the stage for what experts are calling the 'Bio Revolution.' It would change how a long list of industries make things. In 2020, McKinsey estimated that this ‘Bio Revolution’ could have a $2 to $4 trillion dollar worldwide impact between 2030 and 2040, equivalent to 6.5–13 times Chile’s annual GDP1.

In Latin America, biotech is the largest part of the deep tech sector. According to the Interamerican Development Bank, the sector represents 61% of startups backed by institutional investors in Latin America (LATAM), accounting for 35% of the total capital raised and 42% of the ecosystem’s total value)2.

What makes the region attractive for biotech investment? Which countries lead? And which companies are actually building? This post takes each question in turn.

Why Biotech Took Hold Here

Several things explain why biotech is likely to stay prominent in LATAM. The first is the region’s long history in food and agriculture, alongside its biodiversity. LATAM is home to 40% of the world’s biodiversity and 11 of the 14 recognized biomes, with six countries (Brazil, Colombia, Ecuador, Mexico, Peru, and Venezuela) ranking among the 17 “megadiverse” nations worldwide3.

Another critical factor driving biotech’s growth in Latin America is the availability of highly skilled professionals across core life science disciplines, ranging from Biology and Genomics to Biochemistry, Medicine, and Agricultural/Veterinary Sciences.

A 2022 report published by Zentynel, one of the only 15 regional funds focused on Deep Tech in LATAM, highlighted “the impact that the publications of scientific papers from Latin America in life sciences are having”, and also the relatively cheap cost of human capital in LATAM compared to more developed countries: the average salary of professionals related to life sciences in Latin America is 35% lower than that of Europe and 65% lower than that of the United States4.

Governments across LATAM also back biotech with policy and public money. Argentina’s 2017 Interministerial Agreement for Bioeconomy Development, Brazil’s designation of Bioeconomy as a core focus under its National Strategy for Science, Technology, and Innovation, and Chile’s alignment of intellectual and industrial property regulations with global standards, backed by agencies such as CORFO and the Scientific and Technological Development Promotion Fund, are all part of that.

Biotech presence across the region

According to the IDB, biotech leads most of the Deep Tech activity in LATAM and also represents the largest share of its Deep Tech ecosystem value. However, the sector’s prominence varies by country.

Below is a snapshot of the most relevant biotech-focused nations in the region, per the IDB:

Costa Rica:

Of the 6 Deep Tech startups that have received VC funding, 83% focus on biotech.

Three companies, Clearleaf, Speratum, and Cenibiot, are each valued at $10–25 million USD.

Chile:

Of the 65 Deep Tech startups that have received VC funding, 52% focus on biotech.

Standouts include Phage Lab, a developer of bacteriophage treatments for animals5, valued at $100–500 million USD, and Thyroid Print, a molecular tester for indeterminate thyroid nodules6, valued at $50–100 million USD.

Brazil:

Of the 101 Deep Tech startups that have received VC funding, 57% focus on biotech.

Kaiima, a company developing plant genetics and breeding technology7, is valued at $100-500 million USD.

Biotimize, a provider of research, technology, development, and other services for biopharma sector8, is valued at $100-500 million USD.

Argentina

Of the 103 Deep Tech startups that have received VC funding, 67% focus on biotech.

Bioceres, a provider of crop productivity solutions to growers based in Argentina, is valued at $0.5-1 billion USD.

Moolec, a producer of animal proteins in plants, and Stämm, a producer of biologics & cell therapies, are valued at $100-500M each.

Mexico

Of the 103 Deep Tech startups that have received VC funding, 74% focus on biotech

Eva is valued at $50–100 million USD, while Agrorganica and Polybion each range from $25–50 million USD in valuation. PROSPERiA is valued at $10–25 million USD.

Uruguay

Of the 11 Deep Tech startups that have received VC funding, 90% focus on biotech.

Ecosativa, Enteria, Germinar and BentenBiotech, all biotech startups based in Montevideo, are valued at $1-5 million USD.

It’s worth noting that most Uruguayan startups are still in the early stages of development–none of them have a 10+ million USD valuation.

Investing in biotech

As with every other sector, biotech has a particular set of trends to consider when making investment decisions. Zentynel’s 2022 “Biotech in Latin America: The Next Frontier” report9 points out that it demands significantly higher investment and longer timelines than most other industries, primarily due to mandatory testing and certification requirements. At the same time, the global nature of biotech innovations often means they have worldwide applicability.

Below are the principal factors that shape investments in biotech-based ventures worldwide, subsequently 3 trends for biotech investment specifically in LATAM identified by Zentynel, and finally a map of VCs actively investing in biotech.

Principal investment factors worldwide

Distinct Market Risks

Unlike many technology startups that face high risk tied to customer adoption, biotech ventures typically focus on securing commercial distribution agreements and guarding against potential substitutes.

Stage-Dependent Investment Risks

Early-stage projects carry risks linked to the underlying technology and intellectual property strategy. As projects advance, risk centers on fulfilling rigorous testing and certification milestones.

Crucial Role of IP Protection

Safeguarding intellectual property is essential for capturing the value generated throughout research, development, and testing.

Deep Sector and Technological Expertise

Judging whether a solution applies, whether the technology is genuinely new, and how long approval will take all require knowing the biological sciences and the business models.

The absence of specialized investors capable of evaluating these factors makes it very challenging for companies to raise rounds of between $2-$7 million USD, according to Zentynel.

Investment trends in LATAM

No single fund is currently dominating the biotechnology sector, with major players like Kaszek and Monashees participating only on an opportunistic basis.

Early-stage investment is healthy, with new funds concentrating on seed, which should feed the later rounds.

Co-investment is on the rise, with nearly 70% of funding rounds involving multiple investors. Funds are increasingly willing to work together, which is how a lead investor in the sector eventually emerges.

Distribution of biotech VC Funds in LATAM

The flagship report now covers this ground in full: Accelerating Deep Tech in Latin America. Download the PDF here, or browse the open findings.