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Geopolitics is re-shaping the geography of innovation. In 2025, countries compete for technological superiority, breaking the world back into spheres of influence. In a way, the 2020s are the new 1970s. Nations have restored Cold War aims: to outcompete rivals by appropriating the resources necessary to develop critical technologies autonomously.

There are, however, significant differences between now and the Cold War era. First, the portfolio of technologies that are considered critical to national interests is broader and deeper, ranging from advanced artificial intelligence to quantum technologies and biotechnologies.

Second, the supply chain necessary to construct these technologies is inherently global. Thus, protectionist strategies to re-shore production clash against the networked nature of innovation. Today, “no country alone can make an iPhone” – as economist Eric Beinhocker put it. Deep tech presents even greater barriers to autonomous development, given the complexity and distribution of inputs it requires, from rare minerals to talent.

Finally, with traditional alliances fading, the global race for competitiveness is participated by more players with their own interests. Today’s world has more than two poles of influence. These new geometries of power leave room for new players to affirm themselves on the global stage. Latin America is one such player.

Latin America has traditionally had a passive role in the development of the global technology industry. It has traded at a deficit with bigger partners, serving skills, resources, and market opportunities at a discount. The “Latin American Discount” is a function of the institutional fragility of individual countries in the region and of the region’s fragmentation, which prevents it from leveraging its size and competitive advantages as a block. Foreign investors cannot value opportunities at their actual worth when the context is plagued by uncertain rules, frequent corruption, and inadequate public sector de-risking of emerging markets.

Yet, current changes in geopolitics can change the position of Latin America from a deep tech vassal to a stronghold. This is the thesis behind the Latin American Dynamism Project, which is to accelerate the development and investment of frontier technologies in Latin America.

Latin America has an abundance of essential resources for the development of deep tech, globally. It is home to the lithium triangle, which represents 58% of the global reserves of the mineral. It is rich in energy, including clean sources, a critical requirement for the scaling of the compute industry, for example. It is a hub for specialised talent, for instance in the biosciences.

What Latin America lacks is the network effects that can catalyse its potential into strategic autonomy, founded upon technological competitiveness. The LADP addresses this gap by providing unprecedented insights to public and private decision-makers.

This first LADP report reveals more than a set of surprising data, which show that LATAM is already a theatre for overlooked inventions. It shows regional and global decision-makers a path to making LatAm an autonomous and reputable player in the global race for technological competitiveness. Some countries, such as China, have long understood this, undertaking for a decade now, policies of appropriation of natural resources. Others, from Latin American countries to traditional Western Allies, have been slower to realise the potential of the region as more than the sum of its parts.

We publish these insights with the ambition to catalyze conversations, communities, and ecosystems that accelerate the transition of Latin America from a battleground for technological appropriation to a strategic actor in tech-driven geopolitics.

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This work is the culmination of collaboration with key regional and global innovators, and was funded by the International Strategy Forum, foundation led by Eric Schmidt, former CEO and Chairman of Google.

This post is a collaboration with The Ministry of Experiments

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World politics is tending towards a paradox. Geopolitics is restoring Cold War dynamics, with states seeking technological autonomy that guarantees superiority over adversaries. However, national governments have scarcer means and more dependencies, on each other and on new actors such as technological multinationals. The geography of innovation has significantly changed and “No country alone can make an iPhone today,” as economist Eirc Beinhocker aptly puts it.

The return of spheres of influence is taking place in a world of hardwired networks, where old alliances have become less certain, with the United States taking distance from NATO. This combination is creating new battlefronts for critical technologies, where large and small countries play a new game of appropriation versus autonomy.

This trend is evident in regions like Latin America. Many Latin American countries hold an indispensable supply of resources for the development of deep tech, from raw materials to energy, and new markets. Yet, they have had, so far, wasteful institutions, disjointed ecosystems, and fragile economies to affirm themselves as strong players in global tech. Hence, they have lent themselves mostly to appropriation, giving away precious resources in exchange for basic infrastructure.

Now that there is less West and more Rest in geopolitics, how will resource-rich places like Latam re-align to the emerging world dis-order?

The Politics of Appropriation in a Newtorked World

In 1945, Vannevar Bush published an Science: The Endless Frontier. His prescient pamphlet advocated that the United States had to invest in what today we would call deep tech, to engineer advantages in knowledge into economic and military competitiveness. The world had been divided into two spheres of influence: the American West and the Soviet East. While the US could trust the Soviet Union as long as they had common enemies, peace required assurances against a possible, formidable adversary. Therefore, industrial autonomy was needed to sustain and defend one’s sphere of influence. Bush wrote:

“A nation which depends upon others for its new basic scientific knowledge will be slow in its industrial progress and weak in its competitive position in world trade, regardless of its mechanical skill.”

Eighty years after the publication of Science: The Endless Frontier, Vannevar Bush’s predictions have become the doctrines of states, from the US to China. Today, geopolitical preparedness is technological preparedness, and vice versa. We are back to the ‘60s: competition between states plays out at the technological frontier. The new Space Race is broader and more complex than the Sputnik era, ranging from Artificial Intelligence to Quantum Technologies to Biotechnologies. Now like then, breakthroughs in innovation are breakthroughs in preparedness and preemption. Every investment in inventions is a dual-use investment in a world where alliances are more fragile and conflicts are more frequent. Later on, in 1970, Bush produced another timeless work, Pieces of Action, where he stated:

“In order for great progress to be made on methods and weapons of war, there has to be a system of close joint effort of military and civilian men, especially engineers. The civilians must have independence and the opportunity to explore the bizarre; it is not enough that they be the engineers of contractors to the armed forces. Above all, there must be mutual respect and reliance. This must be present whenever we have to fight again.”

Today, the United States, China, the European Union and others are trying to repatriate these capabilities, where possible, or appropriate them. This approach is evident in the latest changes in American policy, where the Trump Administration is using tariffs as a tool to coerce adversaries and allies alike into buying or becoming Made in the USA. It’s a tit-for-tat – or eye for eye – that includes everything from the Ukraine mineral deal in exchange for protection, to the bullying of Canada into becoming American, to tariff and immigration wars with Latin American nations, to forcing the purchase of US dollars to sustain the country’s unsustainable deficit.

The Biden administration had already started, imposing export controls on technologies deemed critical for national security and offering chunky carrots to build American in America through the Inflation Reduction Act. In 2022, Taiwan Semiconductor Manufacturing Company (TSMC), for instance, received $6.6 billion in direct funding and $5 billion in low-cost loans through the CHIPS Act to build a foundry in Arizona, away from Chinese influence. As a result of Trump’s tariff touting, TSMC announced they would invest an additional $100 billion to expand its advanced semiconductor manufacturing operations in Arizona.

How China Pioneered Today’s Global Affairs

The pioneers of appropriation, however, are the Chinese. The Chinese understood early that geography is destiny, again. In fact, part of China’s National Development and Reform Commission 2024 directives include a strategic positioning of their deep tech industries in the global landscape, “as a result of a “shift on the international balance of power that is transforming the traditional division of global labour– the rise of the East and a relative decline of the West.”

China has been building a network of Silk Roads worldwide, where silk is the natural resources and minerals that are quintessential to building new tech. As Ángel Melguizo and Margaret Myers put it, “as geopolitical conditions limit China’s tech investment and trade prospects in developed country markets, many of China’s ICT and high-end manufacturing companies have sought to engage more extensively with Latin America and the Carribean and other parts of the Global South.” If the iPhone cannot come to China, then China goes to the iPhones – as the old saying goes.

They started with the African continent 25 years ago with the launch of its “go out” policy in 1999. Notably, this strategic move occurred 15 years before the introduction of the Belt and Road Initiative and its technology-focused counterpart, the Digital Silk Road. As of January 2021, China had signed 40 memoranda of understanding with sub-Saharan African continents. Years on, “Chinese technology companies permeate almost all layers of Africa’s telecommunications technologies, from undersea cables, satellites, and backbone infrastructure to applications and platforms for individual consumers”, noted academic Motolani Agbebi.

Now, China is venturing to Latin America (LATAM). Why?

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New Silk Roads to Latin America

If geography is destiny, Latin America is in many ways a tech Eden. Argentina, Bolivia, and Chile form the "Lithium Triangle," containing an estimated 58% of the world's lithium resources. Lithium is the essential ingredient to building batteries, powering everyday electronics and also deep tech innovations. In deep tech—from autonomous vehicles and robotics to smart grids and AI-powered systems—lithium batteries provide the reliable, high-capacity power that enables rapid processing, mobility, and real-time data handling.

Energy independence is another fundamental component to geopolitical resilience and technological development – you must be able to power infrastructure and R&D. Latin America contains an abundance of energy, including renewable sources. In fact, LATAM generated 64% of its electricity from clean sources in 2023, substantially surpassing the global average of 39%. Within the renewable energy portfolio, Hydropower dominated at 43% of total electricity generation, followed by a 14% wind and solar share, minimally above the 13% global average.

Building on this energy foundation, Brazil is now witnessing strategic partnerships between data center operators and renewable energy providers, to fully meet the energy demands of hyperscale data centers, including those managing mixed AI workloads. Similarly, Google Cloud has embarked on constructing its second data center in Latin America, located in Canelones, Uruguay. With sustainability at its core, this facility already utilizes renewable energy for more than 90% of its matrix.

Latin America’s wealth is not only natural. The region has serious potential to become a competitive player in the global race for technological competitiveness. According to the Interamerican Development Bank, by 2023 institutional investment raised by deep tech companies in LATAM reached $2 billion, encompassing at least 340 startups. While this figure is far below the $13 billion invested in deep tech in Asia, $14 billion in Europe, and the $52 billion in the United States as of September 2024, it represents significant progress for the region.

Investment in LATAM increased by nearly 600% between 2019 and 2023—rising from under USD 300 million to USD 2 billion in just four years. The sectors involved reflect a broad spectrum of critical technologies that are at the heart of competition between China, Europe, and the US. Biotechnology (61%) and Artificial Intelligence (11%) dominate LATAM’s deep tech sector; together they represent 72% of regional startups. This balance reflects the critical role these technologies play in tackling challenges like sustainable agriculture, food security, and healthcare.

Not coincidentally, research by Melguizo and Myers shows that:

"The number of Chinese projects in Latin America grew by 33 per cent from 2018-2023, compared with the previous five-year period of 2013-2017, even as the total value declined. In other words, Chinese companies are making more investments in the region but are pursuing smaller-scale projects on average. These investments are also more focused on what China calls “new infrastructure“ (新基建), a term which encompasses telecommunications, fintech, renewable energy, and other innovation-related industries. In 2022, 60 per cent of China’s investments were in these frontier sectors, a key economic priority for the country.”

Do not be fooled by the decline in total investment by China. In reality, the Chinese government and companies recalibrated the sectors in which they invest – from brick-and-mortar to high-tech. Chinese investments shifted from canals, rails, and energy infrastructure, to deep tech, “consistent with Beijing’s laser focus on its own economic upgrading and global competitiveness”. In fact, in 2022, China's Ministry of Science and Technology had explicitly committed to enhancing scientific and technological cooperation with Latin American and Caribbean countries, with specific emphasis on technology transfer and innovation in sustainable development.

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Appropriation vs Autonomy – The Latin American Dilemma

The new Chinese Digital Silk Road to LATAM could find greater space in the emptiness left by crumbling multilateralism and traditional alliances being weakened by trade wars. The wave of export controls issued by the Trump administration is aimed at slowing China down on its path to Artificial General Intelligence. But will that be enough contingency?

First, DeepSeek has stunned techies and markets by releasing competitive AI models at a fraction of the cost of American rivals, showing that the Chinese model for top-down execution can be equally effective and more resourceful. Second, the battle for chips is crucial yet only in front of the war for technological supremacy. China has started building its policies of coercion and appropriation well before its rivals, anticipating that value-based alliances would be replaced by interest-based ones.

As Martin Wolf wrote in the Financial Times: "It is possible that some allies will decide that, although they prefer the US, China is at least more predictable. That would be an insane position for these countries to be in. But it would be the almost inevitable result of Trump’s gangsterish approach to international relations." In fact, the new Cold War is much hotter on more fronts and with more players than the US and China wanting to take the stage. Take India, which now ranks in the top 5 in 45 of 64 technologies that are deemed critical by ASPI. Take Saudi Arabia and the UAE, which are spending hundreds of billions of petro-dollars to become technological and geopolitical hubs.

This might change now, with geopolitics being more populous and driven by more selfish interests. Today, as Monica Duffy Toft aptly puts it: “regime type no longer appears to hinder a sense of shared interests. It is hard power only—and a return to the ancient principle that “the strong do what they can and the weak suffer what they must.” In such a world, multilateral institutions such as NATO and the EU would be sidelined and the autonomy of smaller nations threatened.”

With less West and more Rest contending for tech dominance, Latin America will surely be a new battleground for innovation. Who appropriates what remains to be seen.

To get cutting edge insights on technology and public procurement, follow The Ministry of Experiments

LADP recently hosted a roundtable with regional and global investors, as well as key voices from civil society, to discuss the critical challenges facing Latin America’s deep tech investors ecosystem.

Specifically, we asked them what do deep tech investors in LATAM need to secure both global and regional investment.

Drawing from our literature review, we set the stage by introducing the premise: “Funding focuses mainly on pre-seed and seed stages”, as venture capital funding in Latin America’s Deep Tech sector is overwhelmingly concentrated at the earliest stages.

Scalability beyond pre-seed funding

According to the 2023 Deep Tech: The New Report, an impressive 65% of Deep Tech startups in LATAM are still in their pre-seed and seed phases, having raised less than $1 million. In stark contrast, a scant 6% of these startups have progressed to secure investments exceeding $10 million1.

“These figures highlight the nascent state of the ecosystem and underscore the immense growth potential that venture capital activity holds within this dynamic landscape”, the authors of the report stated.

Furthermore, in 2023 Latin America saw a total of $162 million invested in deep tech, with $130 million allocated to Series B and C rounds. However, the dynamics shifted notably in 2024, when the registered investment in deep tech totaled $138 million in LatAm, yet not a single Series B or C round was recorded2.

This bottleneck has been consistently mentioned throughout our interviews. To understand this reluctance from investors, we opened the discussion by posing the question: What key gaps make LATAM investment less attractive to global VCs, and which resources or support systems would help bridge that gap?

LATAM Discount

The "LATAM Discount" refers to the phenomenon where startups and companies in Latin America are often valued lower than their counterparts in other regions, such as the United States, Europe or other emerging markets, despite having similar or even superior metrics. This discount is attributed to perceived risks, including political instability, economic volatility, and regulatory challenges, which can deter investors.

Even in traditional equities markets, Latin American equities have traded at a significant discount to global averages and Emerging Markets (EM) in the last years. The MSCI LATAM Index, which captures large and mid cap representation in Brazil, Chile, Colombia, Mexico, and Peru, suggests LATAM is trading at -51% Discount compared to the world, above the historical average of -13.9%.

According to Itaú BBA analysis, “this can be partially explained by the rising relevance of tech companies in global indexes, at a higher pace than EMs, while LATAM has virtually small exposure to this sector”.

When comparing the region to the Emerging Markets, LATAM countries are Trading at a higher discount as well, a -27.7% Discount as of 2024.3

When looking at the factors that drive the risks and returns, thus the “LATAM Discount”, the MSCI Emerging Markets Latin America Index, published in 2025, compares the factor exposures of LATAM and other Emerging Markets (EM) like China or India, against a global benchmark (MSCI ACWI IMI)4.

The 6 main factors are Value, Low Size, Momentum, Quality, Yield and Low Volatility. The horizontal axis shows each factor’s relative tilt, with zero representing the global benchmark. A positive value means the index is overexposed to that factor compared to the global average, while a negative value indicates underexposure.

From the 6 main factors identified, LATAM is especially overexposed to Volatility, represented by commodity exposure, macroeconomic swings and political risks, amongst others. This is typically negative, and can deter global equities investors in the short and long term.

In parallel, LATAM lags behind other emerging markets and the global benchmark, which indicates fewer high-quality balance sheets or fewer stocks with strong price momentum compared to the global average.

Finally, it’s also worth noting the exposure to the Low Size factors. A negative Low Size tilt suggests the index is more concentrated in large-cap stocks. Being negative means both LatAm and other EM indexes lean towards bigger companies compared to the global benchmark.

In the startup context, the LATAM Discount is often discussed in terms of venture capital and private equity investments. Investors may apply a discount to valuations due to concerns about market size, currency risk, and the maturity of the entrepreneurial ecosystem.

The regional investors participating in our roundtable discussion emphasized the recurring issue of the LATAM Discount, a matter of considerable frustration as they believe their portfolios demonstrate sufficient strength for competition on a global scale.

Skepticism towards LATAM’s R&D

Among the chief pain points identified were skepticism toward LATAM’s R&D capabilities and a fragmented regulatory landscape; meanwhile, the main recommendations to advance included promoting cross-border regulatory innovation, and building a stronger regional coalition with global reach

Deep tech companies rely extensively on R&D at top-tier academic institutions. In fact, their defining characteristic is that they emerge after years of rigorous research and experimentation carried out by individual scientists or teams of PhDs, in many cases.

This process involves the development of robust intellectual property and a lengthy, strategic technology transfer from academia to the commercial sector, setting the foundation for groundbreaking, commercial innovation.

This process is long, though. The entire journey—from research and prototyping, through development, validation, and finally commercialization—takes 25-40% longer to translate into returns for investors if compared to the time-horizon of a conventional software company, according to estimates by the Boston Consulting Group5.

However, before even thinking about commercialization, the primary risk at these early stages is the robustness of the underlying science of deep tech ventures. It is at this very early stage that some regional investors raised a flag:

Many times, Latin American deep tech ventures often face skepticism from international investors regarding the robustness and credibility of their early-stage scientific research, doubting whether the underlying science is sound enough to support scalable, global business models.

While this issue is difficult to quantify, it is far from new. In 2024, Garret Dempsey—a global investor active in deep tech across both the U.S. and LATAM—highlighted the challenge: “U.S. investors, accustomed to evaluating founders and technologies emerging from prestigious institutions like Stanford, MIT, and Harvard, might doubt the credibility of innovations presented by founders from lesser-known universities in LatAm. This skepticism forces founders to undertake the additional challenge of proving the reliability of their technology and data.”

Consequently, this skepticism often results in an extended deliberation process for international investors—sometimes even perceived as biased—at a crucial stage in the development of deep tech companies.

A Fragmented Regulatory Landscape

In LATAM, there is no centralized regulatory agency that oversees the trial phases and market readiness of, say, emerging biotech or agtech innovations looking to come to market.

Each country enforces its own distinct set of rules, and they can differ dramatically from one country to the next, making it exceedingly difficult to expand operations within LATAM, and treat the region as a unified market.

For international investors, this augments the risk of investing, as it may not be strategic to back an early-stage startup that only complies with regulations of a single country, thus impeding their regional and global expansion.

There was broad agreement upon this challenge throughout the roundtable. To bypass this hurdle, regional investors stated that they have been encouraging the startups in their portfolio to work with a global-first approach from the beginning, like the US’s Food and Drug Administration regulations, to immediately meet international standards for trial phases.

By aligning their products and processes with FDA regulatory frameworks, companies can signal adherence to rigorous, internationally recognized standards. This could make deep tech ventures considerably more attractive to global investors by reducing perceived risks and facilitating smoother market entry.

Furthermore, participants suggested devising a public-private initiative that coordinates with regulatory agencies across different countries to fast track their application processes. Could a unified LATAM-framework—aligned with international standards—serve as a catalyst for accelerating deep tech innovation? Could such a framework, if implemented in key markets like Brazil or Mexico, enhance the region’s credibility and make its innovations more favorably regarded on the global stage?

Innovative Regulatory Frameworks

Although countries such as Chile, Colombia, Mexico, and Argentina have been advancing legislative initiatives and supporting technology transfer between universities and the industrial sector for at least 10 years, some attendees believe that such instances alone will not be enough.

Below, we highlight some of the innovative regulatory strategies that several governments in the region are implementing to accelerate the development and scaling of deep tech innovations in LATAM.

México (2015)

• Mexico approved a series of reforms to the Law of Science and Technology and the Federal Law of Administrative Responsibilities of Public Servants. These reforms aimed to except public researchers from the conflict of interest that arose when participating in the creation of a company.

Brazil (2016)

• Brazil enacted Innovation Law 13.423/16, which led to the creation of Technological Innovation Nuclei (NIT) to foster connections between companies and scientific institutions. This law also made paid transfer activities compatible with the career of full-time researchers and allowed researchers to request licenses for up to six years to dedicate themselves to creating a company

Colombia (2017)

• Colombian Congress enacted the Spin-off Law (1838/2017). This law aims to allow researchers from public universities to create companies based on their scientific developments. It clarifies the legal ambiguity regarding the dual remuneration of academics who receive a public salary and additional benefits from the profits of these companies

Argentina (2019)

• As of 2013, CONICET (National Scientific and Technical Research Council) had regulations that limited the possibilities for researchers to participate in company creation based on their research results. In 2019, CONICET established a new regulation that includes the possibility of obtaining a two-year license for researchers to participate in the creation of an ECT.

Chile (2020, 2024)

• On top of the governmental subsidies to undergraduate and graduate students who want to create a company based on their thesis, since 2020 the Congress is working on a bill to promote research in higher education institutions and to increase the flexibility of their technology and knowledge transfer structures, to facilitate the creation of science-based technology companies within universities.

• In 2024, a bill was introduced to develop a network of hubs for deep tech startups in Chile, consisting of shared labs, incubators and accelerators6.

While these measures are certainly positive, participants agreed that they are not enough and that additional alternatives should be explored. Some participants also shared their interest in leveraging Special Economic Zones as catalysts for the development of deep tech in the region.

Special Economic Zones, Free Trade Zones & more

Special Economic Zones (SEZs), also referred to as Free Zones, depending on the jurisdiction, have been long looked up to as models to attract and develop hardware operations necessary for deep tech’s R&D, and also to boost the hosting nation with FDI and jobs.

SEZs are demarcated areas within a country's borders that have distinct business regulations compared to the rest of the country. These differences primarily relate to investment conditions, international trade, customs, taxes, and regulations. SEZ activities encompass a wide range of sectors, including manufacturing, agriculture, tourism, trade, and real estate development.

There are over 5,000 SEZs globally, with 630 located in LATAM. Some examples include the special economic zone in Yucatán, Mexico7, as well as the Colón Free Trade Zone and Panamá Pacífico Special Economic Zone in Panamá8, and Honduras' Próspera. Open Zone Map is a comprehensive resource that charts special economic zones globally.

Although results vary by region, these are some of the benefits of SEZ, both for hosting countries and the companies operating within them:

• Generation of direct and indirect jobs for the hosting country: in the Dominican Republic, for example, SEZs provided about 166,000 direct jobs and an estimated 250,000 indirect ones in 20179.

• Preferential access to international markets: in LATAM, SEZs have been used to access U.S. markets, generating large-scale manufacturing sectors in economies previously reliant on agricultural commodities.

• Hardware providers for deep tech companies: SEZs can provide infrastructure facilities for R&D purposes, a critical step in deep tech companies10. In parallel, this can significantly advance technology transfer for hosting countries, by shifting the skills levels from production to design and R&D, as documented in the Philippines as far as 200811.

On the downside, others have argued that they SEZ can undermine national sovereignty and endanger local communities:

• Threat to Sovereignty and Local Communities: Critics argue that SEZs like Próspera in Honduras undermine national sovereignty by allowing foreign investors to operate under separate legal and regulatory frameworks12, leading to a increasing perception of neocolonialism13.

• Land Acquisition and Displacement: SEZs often require large tracts of land, leading to the displacement of local communities and loss of livelihoods, particularly for farmers and indigenous groups.

A Stronger Regional Coalition, with Global Reach

In the second half of our roundtable discussion, our focus shifted toward envisioning a regional coalition capable of bridging local startups with global investment opportunities. The consensus was unequivocal: there is a significant lack of visibility regarding both the progress achieved to date and the future potential. This opacity has fostered a widespread perception among international investors that LATAM deep tech companies struggle to scale through funding stages, secure exits, and generate strong returns.

Building on these insights, participants expressed strong agreement with LADP’s thesis: the only way to bridge the gap between regional and international markets is to establish a coalition of stakeholders that efficiently coordinates efforts across borders, aligning incentives among entrepreneurs, corporates, government, and risk capital.

Concretely, the coalition should focus on:

• Showcasing Success Stories: Highlight deep tech companies with a proven track record of investment returns, thereby shifting the narrative from the challenges faced by LATAM’s deep tech ecosystem to its promising upsides.

• Strengthening Academic Partnerships: Forge deeper relationships with top-tier universities and research institutions across the region, in the US, and Europe to provide more robust academic rigour to the scientific innovations.

• Integrating International Expertise: Involve international experts within local ecosystems to meet global due diligence standards and boost investor confidence.

• Expanding Investor Networks: Develop robust relationships with international investors beyond personal contacts.

• Facilitating Knowledge Exchange: Promote joint research initiatives, and organize conferences and meetups across the region to foster collaboration and innovation.

Now is the time to turn these insights into action. Reach out or directly book a meeting if you are interested in building this coalition, and subscribe to our newsletter for regular updates!

About LADP

At LADP, we are working to identify, participate in, and foster Deep Tech networks of startups and builders across LATAM. Our mission is to address challenges related to institutional frameworks, education systems, infrastructure limitations, and market environment paradigms that currently hinder large-scale development by systematically adopting and implementing international best practices in the ecosystem.

So far at LADP, we’ve covered biotech and AI in depth, the two biggest Deep Tech verticals in LATAM. Together, these sectors represent 72% of Deep Tech startups in the region that have secured over $1 million in institutional funding, 57% of the capital raised and also 57% of the value created in the region.

Everyone talks about AI and Biotech, but misses another wave of businesses that are contributing to the region’s technical development and scaling globally. Nanotechnology (6% of startups), cleantech (5%), spacetech (4%), advanced mobility (4%), robotics (2%), advanced manufacturing (2%), healthtech (2%), advanced materials (1%), and Others (5%) collectively account for 28% of the Deep Tech ecosystem. Despite their smaller representation, these sectors are achieving notable success in terms of capital raised, value creation, and impact delivered across the region.

For example, spacetech comprises only 4% of the startups that raised over $1 million between 2018 and 2023 in LATAM, yet it attracted 18% of the capital raised across all verticals–just a fraction lower than AI.

Similarly, medical devices, which also comprise a minimal number of startups in the region, contributed 22% to the value generated in the region–even more than AI!

In this blog we will examine these verticals of Deep Tech, analyze their presence in the region, and dive deeper in three of the leading startups across the verticals: spacetech, cleantech and medical devices.

Number of startups by sector

Let’s take a closer look at each one of the segments outlined in the previous graph, starting with the number of startups founded beyond AI and biotech, which collectively represent 28% of LATAM’s Deep Tech ecosystem, comprising approximately 95 startups.

• Beyond biotech and AI, which together account for 72% of all startups created, the distribution among smaller verticals is relatively even, ranging from 2% to 6% each.

• Nanotechnology (6%) and cleantech (5%) emerge as the largest among these smaller categories.

• For context, the United States alone is home to 1,148 nanotechnology startups, with 584 of them receiving funding—a stark contrast to the relatively modest presence of this sector in Latin America1.

Value created by sector

• The verticals beyond biotech and AI represent 43% of the $8 billion ecosystem value created by all Deep Tech startups, translating to approximately $3.44 billion.

• All sectors are fairly balanced between 1% to 5% each, except for Medical Devices, which accounts for 22% of the total value of the ecosystem in LATAM.

• The spike in Medical Devices is primarily due to Establishment Labs, the highest valued Deep Tech company in LATAM, at $1.8 billion alone.

These numbers may seem promising, but they are still a small fraction if compared to the global Deep Tech landscape:

• The global medical devices market was valued at $520 billion USD in 2024, and is projected to reach $900 billion by 20332.

• The global spacetech market was valued at $640 billion USD in 2023, and is projected to reach $1.5 trillion USD in 20353.

• The global cleantech market was valued at $700 billion in 2023, and is projected to reach more than $2 trillion USD by 20354.

Share of each Deep Tech’s vertical value across countries

The Deep Tech: The New Wave report by the International Development Bank also includes a breakdown of value created by country, offering a more granular approach to the strengths and opportunities across LATAM.

• Argentina's Deep Tech ecosystem outside of biotech and AI is led by spacetech (15%), All other verticals provide minimal contributions, of 2% or less each.

• Brazil’s Deep Tech ecosystem outside of biotech is led by Advanced Mobility (13%) and followed by Nanotechnology (7%).

• Chile’s Deep Tech ecosystem outside of biotech and AI is classified as Others (17%).

• Costa Rica’s Deep Tech ecosystem outside of biotech and AI is dominated by Medical Devices, which represent a remarkable 97% of the value, while other sectors have negligible contributions.

• In the Rest of LATAM, Cleantech stands out with 45% of the value created, followed by Medical Devices (20%), while the second major group is classified as Others (20%).

Capital raised by sector

Lastly, the verticals beyond AI and biotech captured 43% of the $2 billion raised by Deep Tech startups in LATAM, amounting to $860 million in total funding.

• Of the $2 billion USD raised by Deep Tech startups between 2018 and 2023 in LATAM, Space Tech (18%) and Medical Devices (11%) lead the way, together accounting for nearly 30% of the total.

• The spike in Medical Devices is primarily due to Establishment Labs.

Let’s consider the global capital raised in spacetech for context. SpaceTech Analytics estimated that North America dominates with $102 billion in investment, far outpacing Asia-Pacific's $42 billion. In contrast, South America lags significantly with only $750 million, highlighting a vast disparity in financial resources allocated to SpaceTech innovation across these regions5.

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Leading Startups

Below, we profile 3 leading startups in spacetech, cleantech, and medical devices across LATAM, to have a clearer understanding of the diversity of initiatives and opportunities.

Satellogic (spacetech)

• Founded in 2010 and headquartered in Buenos Aires, Satellogic focuses on building a scalable Earth Observation platform through a high-resolution Low Earth Orbit (LEO) satellite constellation. It aims to provide affordable geospatial data for various industries and governments at a competitive price point. It has developed a global presence with 34 operational spacecraft.

• With total equity funding of $239M, Satellogic’s key investors include Liberty Strategic Capital, Tencent, and the Inter-American Development Bank. The largest funding round was $150M (Series D in 2022), and the latest was a $10M Post IPO round in December 20246.

• It is among the nine Deep Tech companies valued between $100M and $500M, according to IDB.

• Satellogic has received criticism recently, after it partnered with O.N.E. Amazon to develop an "Internet for Forests" in the Amazon rainforest. This initiative involves deploying sensors and satellite technology to monitor the forest, with the data collected being used to create digital asset securities representing hectares of the rainforest. Critics argue that this approach commodifies and tokenizes the natural ecosystem, potentially exploiting the Amazon and its indigenous communities under the guise of conservation7.

Sistema.bio (Clean Tech)

• Founded by Alexander Eaton, who grew up in Kenya, alongside Mexican co-founder Camilo Pagés, Sistema.bio is a Mexico-based Clean Tech company that designs and implements biodigester solutions for sustainable waste management and renewable energy generation. The company aims to empower farmers and rural communities by providing affordable and scalable solutions to reduce greenhouse gas emissions and enhance agricultural productivity.

• The company operates major hubs in Mexico and Colombia, and has full-service partnerships in Costa Rica, Peru, Nicaragua, Belize, the Dominican Republic, El Salvador, Guatemala, Uruguay, Ecuador, and Honduras. Additionally, demo installations are present in Haiti, Venezuela, and Cuba, reflecting a broad regional reach with varying levels of implementation and collaboration8.

• Between 2024 and 2025, Sistema.bio raised $22.8M across three disclosed Series B funding rounds. Key funding milestones include $4.3M in July 2024, $15M in October 2024, and $3.5M in January 2025. Notable investors include KawiSafi, AXA Investment Managers, Blink, EcoEnterprises Fund, ElectriFI, Chroma Impact Investment, and Novastar Ventures.

• With a valuation of $50M-$100M, Sistema.bio stands as a key player in the Clean Tech sector in Latin America.

Establishment Labs (Medical Devices)

• Founded in 2004 and headquartered in Costa Rica, Establishment Labs is a medical technology company specializing in minimally invasive, next-generation breast implants under the Motiva Implants® brand. Their solutions focus on safety and aesthetics, with commercial distribution in over 70 countries. It holds 25 patents and 200 global patent applications across 25 jurisdictions.

• Establishment Labs has raised $121M across eight funding rounds, with a $55M Series D round as its largest. Key investors include Madryn Asset Management, JW Asset Management, and Crown Predator Holdings. It is listed on NASDAQ and valued at $1.8B, making it the most valuable company in the regional ecosystem9.

• In January 2025, founder and CEO Juan José Chacón-Quirós announced he would step down as CEO effective March 1, 2025, transitioning to a role on the board of directors to focus on innovation and market expansion. Peter Caldini, the current president, will serve as interim CEO10.

Conclusion

Despite accounting for only about a third of LATAM’s Deep Tech startups, sectors like Spacetech, Medical Devices, Nanotechnology, and Cleantech have demonstrated a significant impact, both in terms of capital raised and value created. These sectors are not only thriving locally but are also making strides in international markets, showcasing the region's capacity for global innovation.

Notably, Establishment Labs, the highest-valued Deep Tech company in LATAM, is publicly traded on NASDAQ and continues to attract international investment. Similarly, Sistema.bio has expanded its operations to 15 countries across the region, delivering sustainable solutions for renewable energy. Satellogic, with its cutting-edge space technology, has developed a global presence, serving industries and governments worldwide.

By leveraging their unique strengths and focusing on sustainable, scalable solutions, these emerging sectors are poised to make an outsized impact, positioning LATAM as a key player in global technological advancement.

About LADP

At LADP, we are working to identify, participate in, and foster Deep Tech networks of startups and builders across LATAM. Our mission is to address challenges related to institutional frameworks, education systems, infrastructure limitations, and market environment paradigms that currently hinder large-scale development by systematically adopting and implementing international best practices in the ecosystem.

Artificial Intelligence (AI) has become a cornerstone of innovation across industries. The International Data Corporation estimates AI will contribute $19.9 billion to the global economy by 2030, representing 3.5% of the world’s GDP1.

Regionally, Latin America and the Caribbean (LATAM) is keeping pace with this booming trend. Approximately 47% of Latin American companies have actively integrated artificial intelligence into their business operations, surpassing the global adoption rate by five percentage points. In contrast, only 16% of companies in the region report having no interest in exploring AI as part of their digital transformation efforts2.

Moreover, AI's influence in LATAM extends beyond corporate adoption. Startups and companies are developing innovative AI tools for both regional and global applications. According to the Inter-American Development Bank (IDB) report Deep Tech: The New Wave, 11% of LATAM Deep Tech companies that have raised over $1 million from institutional investors are AI-focused—making AI the second-largest Deep Tech vertical in the region after biotech (61%)3.

From well-established companies founded in LATAM like NotCo, which uses AI to create plant-based alternatives to animal products (valued at 1.5 billion dollars4), to Runway, a generative AI platform for audiovisual content (also valued at 1.5 billion dollars5), AI is already at the forefront of LATAM’s Deep Tech landscape.

In this blog, we will explore the inherent complexities of AI readiness in LATAM, the challenges and opportunities for investors, and profile the top countries and companies that stand out in the sector.

LATAM’s AI Momentum

LATAM is uniquely positioned to embrace AI adoption due to its dynamic and evolving digital ecosystems.

According to the IDB, the region can enhance government efficiency, create smarter cities, and address critical gaps in education and healthcare by adopting AI. Fostering inclusive ecosystems that prioritize ethical considerations, skill development, and equitable access to technology will position AI not just as a tool for innovation but as a catalyst for long-term sustainable growth in the region.

Building on its adoption and investment readiness, AI is already a standout within the region’s Deep Tech ecosystem. It is the second-largest Deep Tech sector in the region and contributes 15% of the 8 billion USD created-value within LATAM—third only to biotech (42%) and medical devices (22%).

In terms of capital, AI startups raised 22% of the 2 billion USD invested by VC’s in LATAM from 2018 to 2023, second only to biotech (35%).

Complexities behind LATAM’s AI Momentum

The 2024 “Latin American Artificial Intelligence Index” (ILIA)6 presents a comprehensive benchmark to understand key drivers, readiness, and underlying challenges of AI adoption in the region. Now in its second edition, ILIA distilled its insights into 10 essential findings that describe the region's complexities.

1. Talent Gap: The concentration of AI talent in Latin America has doubled in the past eight years, yet no country matches Global North levels, maintaining a significant gap.

2. AI Literacy: The skills gap in AI engineering is five times wider compared to industrialized nations. However, AI literacy penetration is higher in some countries, presenting opportunities to improve workforce skills.

3. Brain Drain: Since 2019, Latin America has consistently lost more AI specialists than it has attracted, except for isolated cases in Costa Rica and Uruguay.

4. Economic Boost: In Chile alone, generative AI could enhance the productivity of 5.69 million workers in the country’s top 100 occupations, potentially raising the national GDP by 1.2 percentage points.

5. Economic Matrix Impact: Liberal economies like Chile, Uruguay, and Costa Rica lead in entrepreneurship and private investment, while industrial powers like Mexico and Brazil excel in patents, high-tech workforce, unicorn startups, and cutting-edge manufacturing.

6. Gender Gaps: Women’s participation in AI varies widely, with some countries showing robust figures but overall reflecting insufficient efforts to close the gender gap.

7. Multidisciplinary Growth: Approximately 80% of AI-related publications in the region are multidisciplinary, with 70% concentrated in 10 key disciplines, particularly clinical medicine.

8. Legislative Momentum: The region has 38 AI-related legal initiatives, addressing topics like modifying penal codes for generative AI misuse, including fraud (Chile) and privacy violations (Mexico).

9. Lack of Urgency: Despite progress, most national AI policies lack substantial resources and urgency to close gaps and capitalize on AI’s potential.

10. Startup Challenges: AI startups remain concentrated in a few countries, with limited private investment and a scarcity of unicorns, highlighting the need for stronger funding and support systems.

Factoring all these dimensions, ILIA featured individual scores for each of the 19 LATAM countries to rank their AI ecosystem maturity levels.

Chile, Brazil, and Uruguay are the Pioneers of the region, distinguished by their advanced technological infrastructure, robust talent development, scientific productivity, and strong innovation capacity. These nations are also proactively shaping national strategies to consolidate and expand technological advancements across all sectors of their economies and societies.

Argentina, Colombia, the Dominican Republic, and Mexico are the leading Adopters, representing countries that have begun integrating AI into various sectors of their economies and societies but have yet to establish a position of leadership.

Honduras, El Salvador, Guatemala, and Bolivia are classified as Explorers, falling behind in the adoption curve. These countries are in the initial stages of investigating AI, focusing on developing basic capacities but with limited AI-based applications and a nascent research community.

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Leading sectors by number of Deep Tech startups, per the IDB

Chile (1st on ILIA’s Index)

• Of the 65 Deep Tech startups that have received VC funding, 13% focus on AI, the second largest group after biotech (52%) .

• While biotech startups dominate in terms of number, accounting for over 50% of the total Deep Tech startups, AI leads in terms of value, largely due to NotCo’s rapid growth, a company worth 1.5 billion USD.

Brazil (2nd on ILIA’s Index)

• Of the 101 Deep Tech startups that have received VC funding, 16% focus on AI, the second largest group after biotech (57%).

• There’s no AI company highlighted in the Top Deep Tech Startups report by the IDB.

Uruguay (3rd on ILIA’s Index)

• Of the 11 Deep Tech startups that have received VC funding, 10% focus on AI, the second largest group after biotech (90%) .

• MetaBIX Bio, a company leveraging AI and biotechnology to predict and prevent diseases affecting plants, animals, and humans, is worth 1.5 million USD.

Argentina (4th on ILIA’s Index)

• Of the 103 Deep Tech startups that have received VC funding, 8% focus on AI, the second biggest one after biotech (67%), and co-equal with nanotechnology.

• There’s no AI company highlighted in the Top Deep Tech Startups report by the IDB

Colombia (5th on ILIA’s Index)

• Of the 30 Deep Tech startups that have received VC funding, 22% focus on AI, the second largest group after biotech (33%) .

• Colombia is the country with the biggest percentage of AI startups in the region.

• There’s no AI company highlighted in the Top Deep Tech Startups report by the IDB

Conclusions

While LATAM faces hurdles such as talent gaps, brain drain, and limited investment resources, these challenges also represent opportunities. Addressing these gaps through inclusive education, skill development, and improved policy frameworks can position the region for long-term growth in AI.

Countries like Chile, Brazil, and Uruguay, as highlighted in the ILIA Index, are paving the way through collaborative efforts between governments, startups, investors, and educational institutions. These examples underline the importance of partnership-driven strategies to build a sustainable and impactful AI ecosystem in the region. By expanding these models and fostering cooperation across the region, LATAM can secure its place as a global leader in AI innovation.

From an investor and stakeholder perspective, it’s worth noting the diverse strengths shown by countries across the region. Chile’s AI startups dominate in value (e.g., NotCo), Brazil leads in the number of AI startups (16), and Colombia has the highest percentage of AI-focused startups (22%). This diversity offers investors and stakeholders a rich AI landscape to engage with.

About LADP

At LADP, we are working to identify, participate in, and foster Deep Tech networks of startups and builders across LATAM. Our mission is to address challenges related to institutional frameworks, education systems, infrastructure limitations, and market environment paradigms that currently hinder large-scale development by systematically adopting and implementing international best practices in the ecosystem.

Biotechnology, commonly referred to as biotech, is an emerging field which uses technology to engineer biology into products and services. It includes genetic engineering, cell therapy, and bioinformatics, which can enable advancements in drug development, disease treatment, sustainable agriculture, and renewable energy, amongst others.

Over the past decade, breakthroughs in these fields have set the stage for what experts are calling the 'Bio Revolution.' This paradigm shift promises to fundamentally transform how industries operate, ushering in a new era of biological innovation. 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.

On a regional level, biotech has become a leading force in Latin America’s 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 unique attributes make the region so appealing for biotech investments? Which LATAM countries stand out in this race? And who are the key players driving innovation? In this blog, we explore these questions and uncover why biotech is poised to reshape Latin America’s deep tech landscape.

Key Drivers Behind Latin America’s Biotech Momentum

There are several factors that explain why biotech is poised to remain a prominent field in LATAM. First, the region’s historical ties to food and agriculture, coupled with its vast biodiversity, create fertile ground for innovation. 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.

Finally, governments across LATAM actively foster biotech through strategic policies and public investment. 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—all illustrate the region’s commitment to nurturing its biotech ecosystem.

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.

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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

• A thorough understanding of biological sciences and biotech business models is key to assessing solution applicability, technological novelty, and navigating complex regulatory approval processes.

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

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

2. The early-stage investment landscape is thriving, thanks to new players focusing on seed-stage companies, which bodes well for a strong deal-flow in later funding rounds.

3. Co-investment is on the rise, with nearly 70% of funding rounds involving multiple investors. This trend highlights a growing interest among funds to collaborate, which could support the emergence of a leading player in the biotechnology space.

Distribution of biotech VC Funds in LATAM

About LADP

At LADP, we are working to identify, participate in, and foster Deep Tech networks of startups and builders across LATAM. Our mission is to address challenges related to institutional frameworks, education systems, infrastructure limitations, and market environment paradigms that currently hinder large-scale by systematically adopting and implementing international best practices in ecosystem.

Over the last few years, deep tech has rapidly emerged as one of the most promising and transformative sectors in Latin America and the Caribbean (LAC). Investment in cutting-edge science —ranging from advanced biotechnology to clean energy solutions— continues to grow. However, developing these technologies requires in-depth work on the technology itself to make it functional, substantial research and development efforts, and historically, massive capital deployment over long periods.

Therefore, key questions remain: Who’s investing in these high-potential companies? How much is being invested? And what areas within deep tech appear most attractive to decision-makers?

How much is being invested

By 2023, institutional investment raised by deep tech companies in LAC reached USD 2 billion, encompassing the 340 startups mapped in the Deep Tech: The New Wave report by the IDB1.

While this figure is far below the USD 13 billion invested in deep tech in Asia, the USD 14 billion in Europe, and the USD 52 billion in the United States as of September 20242, it represents significant progress for the region.

Notably, investment in LAC increased by nearly 600% between 2019 and 2023—rising from under USD 300 million to USD 2 billion in just four years. This growth trajectory shows no signs of slowing down:

• The IDB estimates a 20x expansion in the next decade, driven by a burgeoning pool of skilled researchers and engineers, the cost arbitrage for technology development, lower early-stage valuations that promise high returns, and the region’s immense biodiversity.

• Furthermore, the report suggests that venture capital investment in deep tech could grow by over 100 times in the long term if it replicates proven models: matching funds for accelerators and early-stage VCs, shared labs, free zones, and participation in international agreements like the Patent Cooperation Treaty (PCT), established in 1970 by the World Intellectual Property Organization.

Looking ahead, the potential is even more promising for investors since 65% of identified startups have raised under USD 1 million, and 71% remain valued below the USD 10 million mark.

LAC also benefit greatly from its huge talent pool engaged in R&D and STEM –865k individuals, per the IDB, of which only 0.6% have joined the ranks of Deep Tech Startups—and a 5-10x cost advantage for conducting research in the region rather than in the global north.

Who Is Investing

There are 65 VC funds with at least one deep tech investment in LAC, according to the IDB3. The ecosystem can be divided into three broad segments:

1. Regional Funds Primarily Focused on Deep Tech (15 funds).
   These local investors devote more than 50% of their capital to deep tech, typically at Pre-Seed, Seed, and Series A stages. They often partner with global investors for later-stage financings.

2. Regional Funds That Occasionally Invest in Deep Tech.
   These funds focus mainly on digital startups but stay open to compelling deep tech opportunities.

3. International Funds Investing in LAC Deep Tech.
   Mostly headquartered in the United States, these firms are crucial for validation and global market access. A standout is SOSV/IndieBio, which has backed 30 regional startups, including high-profile successes like NotCo.

Regionally, two early-stage investors—GridX and The Ganesha Lab—stand out for their large volumes of deals, with 56 and 28 startups, respectively. Their active approach fosters pipelines for subsequent larger rounds. However, the lack of robust local participation in follow-on funding remains a bottleneck, highlighting the need for more seed capital and stronger LAC investor involvement in later stages.

Main Areas of Investment

Biotechnology (61%) and Artificial Intelligence (11%) dominate LAC’s deep tech sector; together they represent 72% of regional startups. This balance reflects the critical role these technologies play in tackling challenges like sustainable agriculture, food security, and healthcare.

According to the IDB4, the prevalence of biotech aligns with the region’s “abundant specialized talent in biological sciences, the international competitiveness of the agricultural sector, and the remarkable biodiversity that serves as a resource for researchers.”

• Costa Rica and Argentina illustrate this concentration, with 97% and 80% of their respective deep tech ecosystem value coming from biotech.

• Establishment Labs, a Costa Rica–based biotech company, stands as the region’s most valuable player (USD 1.8 billion).

• SOSV/IndieBio reported a 72% gross average return on investment in LAC deep tech startups between 2015 and 2023, underscoring the potential of this burgeoning sector.

Beyond these two leading areas, the landscape includes: Nanotechnology (6%), Clean Tech (5%), Spacetech (4%), Advanced Mobility (4%), Robotics (2%), Advanced Manufacturing (2%), Health Tech (2%), Advanced Materials (1%), Medical Devices & Others (<1%).

Challenges for Investors

Despite growing momentum, deep tech startups across LAC face complex hurdles. According to the IDB, many early-stage ventures lack strong business and communication skills, often targeting narrow markets and working with limited intellectual property protections—factors that can delay product development and create uncertainty for investors.

Francisca Covarrubias, Director of Innovation and Entrepreneurship Ecosystem Linkage at Fundación Chile, underscores these difficulties, highlighting how challenging it can be for teams to obtain the resources needed for prototyping and laboratory validation. She points out the need for “more ecosystem stakeholders specialized in technology with a business vision,” as well as a stronger link between scientists and industry partners5.

The Sciencepreneurs: Deep Tech Colombia 2023 report adds that the multidisciplinary nature of many deep tech initiatives brings its own obstacles. Founders must navigate technology transfer, patent regulations, and effective networking among various scientific and business fields—hurdles that explain why so many companies struggle to raise even USD 1 million in institutional funding6.

About LADP

At LADP, we are working to identify, participate in, and foster Deep Tech networks of startups and builders across LAC. Our mission is to address challenges related to institutional frameworks, education systems, infrastructure limitations, and market environment paradigms that currently hinder large-scale by systematically adopting and implementing international best practices in ecosystem

Latin America is rapidly establishing itself as a key player in the global deep tech ecosystem. With its abundant natural resources, talented workforce, and burgeoning investment landscape, the region is home to innovative companies making waves in artificial intelligence, biotechnology, cleantech, cryptography, robotics, and more.

According to the Deep Tech: The New Wave report by the IDB, there are over 300 deep tech companies throughout Latin America, valued at over $8 billion throughout LAC1:

Below, we profile 10 of some of the most important deep tech companies in Latin America that are shaping the region’s future and pushing the boundaries of technology.

Bioceres (Argentina): Biotech | Valued at $370 Million

• Bioceres' solutions promote the adoption of environmentally friendly production practices by providing a high-impact platform that features patented seed technologies, microbial agricultural inputs, and next-generation crop nutrition and protection solutions.

• Bioceres has over $460 million in annual revenue2, with an 11% growth YoY. Bioceres has a market capitalization of over $400 million.3

Satellogic (Argentina): Satellites | Valued at $125 Million

• Satellogic is creating the first scalable Earth observation platform capable of remapping the entire planet with both high frequency and high resolution.

• Satellogic’s most recent funding round was a $30 million Note Purchase Agreement with Tether Investments, to double down on its U.S. strategy.4

Kavak (Mexico): AI & Automotives | Valued at $8.7 Billion

• Although not strictly deep tech, Kavak applies advanced algorithms to improve the used car market. It optimizes pricing, quality assessments, and financing options, making car ownership accessible and efficient​.

• Since its inception, Kavak has raised over $1.5 billion from the likes of SoftBank, Ribbit Capital, Tiger Global, Goldman Sachs, General Catalyst, among other leading global investors.5

Aligned Layer (Argentina): Cryptography & Blockchain | Valuation Unknown

• Aligned Layer, an Ethereum verification protocol enhancing the efficiency and affordability of zero-knowledge proofs, enabling engineers to bypass bottlenecks and cost-effectively develop applications on Ethereum using this technology, reducing the cost of verifying zero-knowledge proofs by 90%

• Aligned Layer raised $20 million in Series A funding led by Hack VC.6

Solinftec (Brazil): AgTech | Valued at ~$200 Million

• Solinftec specializes in digital agriculture solutions, integrating real-time data collection with artificial intelligence to optimize farming operations. Their technology enhances efficiency in planting, harvesting, and resource management, contributing to sustainable agricultural practices.

• Solinftec serves major agribusiness groups and has expanded its operations to the United States and Canada.7

Establishment Labs (Costa Rica): Healthtech | Valued at $1 Billion

• Establishment Labs is a medical technology company specializing in the design, development, manufacturing, and marketing of an innovative line of silicone gel-filled breast implants under the Motiva Implants brand.

• Establishment Labs has raised over $100 million to date.8

Auth0 (Argentina): Cryptography | Valued at $6.5 Billion

• Auth0 is a platform that enables companies and web developers to verify user identities before granting access to websites and applications.

• Auth0 raised from Salesforce Ventures, Sapphire Ventures, Bessemer Ventures, among others. Auth0 was acquired by Okta a few years ago.9

NotCo (Chile): AI & Biotech | Valued at $1.5 Billion

• NotCo leverages artificial intelligence to create plant-based food alternatives that mimic animal-based products. The company’s proprietary AI algorithm, Giuseppe, helps develop unique recipes using natural ingredients. NotCo has secured funding from investors like Jeff Bezos and raised $235 million in Series D funding.10

Unico (Brazil): Digital Identity | Valued at $2.6 Billion

• Unico is a Brazilian company specializing in digital identity solutions, offering services such as facial biometric authentication and digital human resources management. Their technology addresses security challenges by providing anti-fraud measures and facilitating digital onboarding processes.

• In April 2022, Unico raised $100 million in a Series D funding round led by Goldman Sachs, with participation from SoftBank and General Atlantic, bringing its valuation to $2.6 billion.11 The company plans to expand its services across Latin America, aiming to enhance secure digital interactions throughout the region.

Decentraland (Argentina): Metaverse & Blockchain | Valued at over $1 Billion

• Decentraland is a blockchain-based virtual reality platform where users can create, explore, and trade in a virtual world owned by its users. Utilizing Ethereum's blockchain, Decentraland allows for decentralized governance and economic systems, making it a pioneer in the metaverse and Web3 space. The platform has garnered significant attention and investment as a leading example of innovation in immersive technologies.

• Decentraland raised over $25M in an Initial Coin Offering, followed by a $25 Million round led by Animoca Brands.12

These companies are just a snapshot of the innovation that is emerging from Latin America’s deep tech ecosystem. While sectors like fintech and e-commerce have dominated investment, deep tech innovations are diversifying the landscape. Continued investment in R&D and supportive public policies will be critical to sustaining this growth trajectory​.

They exemplify how the region is leveraging its scientific and entrepreneurial talent to generate impact on a global scale. Their success stories serve as a beacon for aspiring innovators and investors. In upcoming iterations of the LADP blog, we will be conducting industry-specific profiles of companies that have

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Why is Latin America poised to become a global Deep Tech powerhouse? In this post, we discuss Latin America’s unique labour market, an abundance of natural resources, mobile penetration, geopolitical relevance, and interest from venture investors, and conclude with some challenges to overcome to drive more investment into the deep tech sector across the region. 

A Robust and Growing Technical Talent Pool

The foundation of any tech ecosystem is talent, and Latin America boasts a wealth of it. Latin American governments have been investing in STEM-centered educational programs across the region, which has resulted in higher education that is fostering more entrepreneurship regionally. 

Educational Attainment:

• Brazil produces approximately 100,000 engineering graduates annually, ranking among the top countries globally for engineering education.1

• Mexico graduates over 110,000 engineers and technicians each year, accounting for 20% of its annual graduates.2

• Argentina, with its strong emphasis on education, contributes significantly to the region's talent pool. Universities like the University of Buenos Aires are recognized globally for educating leading technical professionals.

Government Initiatives:

• Brazil's Science Without Borders program provided scholarships to over 100,000 students in STEM fields to study abroad, enhancing the skill sets brought back to the country.3

• Mexico's PROSOFT initiative offers financial incentives to companies investing in IT development, fostering domestic talent.4

• Brazil hosts over 12,000 tech startups, making it the largest startup ecosystem in Latin America.5

• Mexico City is home to a growing number of tech parks and incubators, such as Startup Mexico, which supports numerous startups annually.

• Buenos Aires has been recognized as one of the top startup ecosystems globally, and within Latin America.6

This surge in technical talent is fueling domestic innovation and attracting global tech companies to establish research and development centers in the region.

Leveraging Rich Natural Resources for Technological Advancements

Latin America's abundant natural resources are a cornerstone for deep tech innovation, particularly in clean technology. Whether it be lithium reserves that provide the cornerstone for energy storage that deep tech heavily relies on, through immense biodiversity, the region’s resources provide it with the opportunity to foster a greener deep tech ecosystem.

• Lithium Reserves:

  • The "Lithium Triangle" (Argentina, Bolivia, Chile) contains an estimated 58% of the world's lithium resources.7

    

    • Bolivia is the world's-largest lithium producer, contributing 24.42% of global production.8

    • Argentina is rapidly increasing its production, with investments totaling over $2 billion in lithium mining projects.9

• Renewable Energy Potential:

  • Brazil derives nearly 90% of its electricity from renewable sources, primarily hydropower.10

    

  • Chile aims to produce 70% of its energy from renewables by 2030, investing heavily in solar and wind projects.11

• Biodiversity for Biotechnology:

  • The Amazon rainforest, spanning several Latin American countries, is a hotspot for biodiversity, offering vast potential for biotechnological research in pharmaceuticals and sustainable agriculture.

These resources are attracting significant foreign investment and driving innovation in energy storage solutions, electric vehicles, and sustainable technologies.

Digital Transformation and High Connectivity Rates 

The rapid digital adoption in Latin America is a catalyst for technological innovation, as most people throughout the region are accustomed to using and adopting technology-first services. 

• Internet and Mobile Penetration:

  • Internet coverage and usage in Latin America stands at approximately 83%, with countries like Costa Rica, Argentina and Chile exceeding 85%.12

    

  • Smartphone Adoption: The region has over 400 million smartphone users, with penetration expected to reach 78% by 2025.13

• Fintech Revolution:

  • Latin America’s fintech ecosystem has seen over a four-fold increase over the course of the last six years.14

    

  • Brazil's Nubank, the world's largest digital bank by the number of customers, has over 100 million users and a valuation exceeding $45 billion.15

• EdTech Expansion:

  • The EdTech market in Latin America is projected to reach $3 billion by 2023, growing at a CAGR of 15%.16

    

  • Platforms like Platzi and Descomplica are revolutionizing online education, reaching millions of students across the region.

• E-commerce Growth:

  • E-commerce sales revenue in Latin America is predicted to reach over $125 billion in 2027.17

    

  • MercadoLibre, Latin America's leading e-commerce platform, reported net revenues of $5.1 billion, up 42% YoY.18

This digital landscape provides an ideal environment for developing and scaling AI-driven applications, fintech solutions, and other tech innovations.

Geopolitical Advantages and Nearshoring Opportunities

Latin America's strategic location and evolving trade relationships present significant advantages. In particular, with Trump’s recent victory, the expectation is the United States will continue to nearshore its production, which would ultimately benefit Latin America. Overall, we may also see some deregulation across the tech sector that would foster more investment across the Americas. 

• Proximity to Major Markets:

  • The region's geographical closeness to North America reduces logistical complexities and costs for companies.

  • Similar time zones facilitate real-time communication and collaboration with U.S. and Canadian companies.

• Trade Agreements:

  • USMCA has enhanced intellectual property protections and digital trade provisions, benefiting tech companies (Office of the United States Trade Representative).

  • The Pacific Alliance (Chile, Colombia, Mexico, Peru) promotes economic integration, aiming to eliminate a substantial amount of tariffs among member countries.19

• Nearshoring Trends:

  • Companies are shifting supply chains to Latin America to mitigate risks exposed by the COVID-19 pandemic and geopolitical tensions elsewhere.

  • Mexico has seen a surge in manufacturing investments, with foreign direct investment (FDI) in the sector reaching $12 billion in 2021.20

• Government Support:

  • Colombia's Orange Economy initiative focuses on creative and tech industries, contributing 3.4% to the country's GDP.21

  • Chile has established over 15 tech parks to attract foreign companies and foster innovation.22

These factors make Latin America an increasingly attractive destination for companies looking to expand or relocate their operations.

Surge in Venture Capital Investment and Thriving Startup Ecosystems

Latin America has been one of the fastest-growing regions with regards to incoming venture investment. Investment trends underscore the region's growing prominence in the tech world, particularly coming off the back of successful exits coming from the region.

• Record-Breaking Venture Capital:

  • Venture capital investments in Latin America reached $19.5 billion in 2021, a threefold increase from the previous year - ranking it the fastest-growing region for venture funding.2324

    

  • SoftBank's Latin America Fund II launched with $3 billion, following the success of its initial $5 billion fund.25

• Notable Investments:

  • Rappi, a Colombian delivery app, raised $1 billion in a funding round led by SoftBank.

  • Creditas, a Brazilian fintech company, secured $260 million in Series F funding, reaching a valuation of $4.8 billion.

• Local Venture Firms:

  • Kaszek Ventures has invested in over 90 companies, raising more than $1 billion across its funds.

  • Monashees focuses on early-stage startups, with a portfolio that includes 99, acquired by Didi Chuxing, and Loggi.

• Government Programs:

  • Startup Chile has supported over 2,000 startups, generating over $1.4 billion in economic activity.

  • Brazil's InovAtiva Brasil offers acceleration programs to over 400 startups annually, providing mentorship and investor connections.

These investments and programs are creating vibrant ecosystems that nurture innovation and entrepreneurship.

Addressing Challenges: Paving the Way Forward

While the potential is immense, Latin America faces challenges that need to be addressed to unlock its full capabilities. We discuss some of these challenges, and dive into some practical examples where these challenges have posed as serious roadblocks to the innovation ecosystem in the region. 

• Political Instability:

  • Changes in government and policy shifts can create uncertainty. For example, regulatory changes in Mexico's energy sector have raised concerns among investors.26

• Corruption and Governance:

  • Transparency International's Corruption Perceptions Index ranks several Latin American countries below the global average.27

  • Initiatives like Brazil's Operation Car Wash have shown commitment to combating corruption.28

• Infrastructure Gaps:

  • The World Economic Forum notes that Latin America needs to invest 5% of its GDP annually in infrastructure to meet its needs, but current investment is around 2.8%.29

• Market Fragmentation:

  • Diverse regulations and standards across countries can hinder regional expansion for businesses.

Opportunities to Overcome Challenges:

• Regulatory Reforms:

  • Countries are implementing policies to improve the business environment. For instance, Peru's digital government initiatives aim to streamline administrative processes. Other countries including Costa Rica are adopting Estonia’s e-governance X-Road platform.30

• Public-Private Partnerships (PPPs):

  • PPPs are being leveraged to improve infrastructure and services. Colombia has over $25 billion in PPP projects.31

• Regional Integration Efforts:

  • Organizations like the Inter-American Development Bank (IDB) support projects that enhance regional connectivity and standardization.

By proactively addressing these challenges, Latin America can create a more conducive environment for innovation and investment.

The Road Ahead: Latin America's Role in Global Innovation

Latin America's trajectory suggests a growing influence on the global stage, we have already seen governments across the region turn heavily towards relying on deep tech as a key economic and social driver of success throughout the region. 

• AI and Machine Learning:

  • Chile's Center for Mathematical Modeling is advancing AI research, focusing on applications in astronomy and natural disaster prediction (CMM).32

  • Brazil is investing in AI ethics and governance, participating in global dialogues to shape responsible AI use.33

• Biotechnology and Healthcare:

  • Argentina's biotech sector is developing GM crops and biopharmaceuticals, contributing to global food security and healthcare.34

  • Costa Rica is becoming a hub for medical device manufacturing, exporting over $7.6 billion annually.35

• Sustainable Development:

  • The Amazon Fourth Industrial Revolution Center in Brazil focuses on leveraging technology for sustainable development in the Amazon region.36

  • Peru's adoption of blockchain for supply chain transparency in mining showcases innovative approaches to sustainability.37

Our next post will highlight some of the leading deep tech companies emerging from Latin America, diving into case studies throughout the region to unpack what verticals they are tackling and what generalizable lessons can be gleaned for other builders across the region. 

Embracing the Opportunity with the Latin American Dynamism Project

Latin America's ascent in the deep tech sector is not just a regional development but a global opportunity. Investors, innovators, and policymakers can participate in this exciting journey by:

• Investing in high-growth potential markets with significant returns.

• Collaborating on research and development initiatives.

• Supporting sustainable and ethical technological advancements.

The Latin American Dynamism Project (LADP) offers comprehensive insights into this vibrant landscape. By engaging with LADP, you can access:

• In-depth research reports.

• Networking opportunities with key industry players.

• Updates on policy changes and market trends.

Join us in shaping the future of global innovation. Visit LADP's website to learn more and become part of Latin America's deep tech revolution. We also invite you to take our survey to contribute to our research.

Take the Survey

We are excited to launch this blog as part of the Latin American Dynamism Project (LADP), an initiative focused on unlocking the potential of Latin America’s deep tech ecosystem. Over the coming months, this space will serve as a hub for updates on our research, insights from our interviews with founders and investors, and key milestones as we work towards building a more connected, data-driven deep tech landscape across the region.

Our Thesis: A New Era for Latin American Innovation

At LADP, we believe that Latin America is on the cusp of becoming a global deep tech powerhouse. With abundant natural resources, rapid educational advancements, and high internet penetration, the region has all the ingredients for technological success. However, reality is more complex. Corruption, market fragmentation, and a lack of coordinated public and private efforts have hindered progress in key sectors like AI, ClimateTech, Quantum, Blockchain, and Biotech, among other deep tech verticals.

Our thesis is simple:
If we provide public and private decision-makers with clear, data-driven insights into deep tech opportunities, we will catalyze greater investment in Latin America, realising its innovation potential .

Our Work: Building a Map for the Future

In its initial phase, LADP’s goal is to create a deep tech map that profiles early-stage to Growth Stage startups across sectors such as AI, Crypto, ClimateTech, BioTech, and beyond. This map will not only highlight promising ventures but will also identify key funding gaps, helping investors, entrepreneurs, and policymakers make informed decisions regarding how we can scale the investment landscape in the region. It’s not just about data collection—it’s about building a dynamic resource that will evolve alongside the ecosystem.

Our work is grounded in interviews and surveys with founders, investors, and policymakers across Latin America and the global north. These conversations will help us understand the unique challenges and opportunities in each country, from the vibrant startup scene in São Paulo to emerging tech hubs in Mexico City and Bogotá. The information we gather will directly shape the recommendations we provide, ensuring they are grounded in the real-world experiences of those working on the frontlines of innovation.

Key Outputs of the LADP

As we advance with the LADP, our goal is to illuminate the deep tech landscape in Latin America by providing valuable insights into innovative ventures across the region. We'll explore their core technologies, missions, and the challenges founders face in securing capital and scaling their businesses, especially within complex regulatory environments.

Central to our mission is building a strong community that unites stakeholders from venture capital, public policy, entrepreneurship, and beyond. By fostering collaboration between the private and public sectors, we aim to drive the long-term growth of Latin America's deep tech ecosystem and support founders in overcoming obstacles to success.

Outcomes: What Success Looks Like

We aim to catalyze investment and foster collaboration in deep tech throughout Latin America. By building a comprehensive, data-driven map and forming a coalition of key actors, we aim to enhance funding flows from both domestic and international sources, promote startup growth and scalability, strengthen geopolitical alignment, and drive significant economic impact. This vision includes more Latin American startups advancing through critical development stages, entering global markets, and positioning the region as a competitive force on the global stage.

In the upcoming months, we will focus on building Latin America's Deep Tech Map. This first product aims to provide an interactive, detailed overview of the region's leading deep tech ventures, categorized by sector, technology, location, and funding stage. By illuminating the innovation landscape, we hope to attract investors, foster collaborations, and support startups in overcoming obstacles to success.

Join us on the Journey

We are engaging diverse stakeholders to ensure our project is truly collaborative. This includes deep tech founders across Latin America in sectors like AI, biotech, and quantum computing, who will provide valuable insights into their opportunities and challenges. We are also working with local and international investors committed to funding the next generation of deep tech startups, policymakers who shape the environment for innovation and investment, and ecosystem players such as universities, accelerators, NGOs, and service providers offering critical support to the deep tech ecosystem.

If you are a policymaker, investor, or deep tech founder, we want to talk to you. Your participation is vital to our mission. Please consider completing our initial survey; your insights will guide much of our work over the coming months as we develop our initiatives.

Take the Survey

Over the coming months, we'll share insights, updates, and findings from our research. Stay tuned for our next post, where we'll dive deeper into specific sectors poised for growth, share learnings from other countries and regions, highlight deep tech startups at the forefront of innovation, and more. Subscribe to our blog to stay informed on all things deep tech in Latin America. Whether you're an entrepreneur, investor, policymaker, or simply passionate about the future of deep tech in the region, we invite you to join us on this journey.

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