Latin America has stood out on the global stage with disruptive deep tech companies, or in literal translation: deep technology. Through technological innovation it is constantly evolving. We will explore what deep tech is, its characteristics, and how countries like Brazil are driving the development of these revolutionary startups. So, follow us on this journey on the innovation front!
What is Deep Tech?
Deep tech is a term that describes companies and startups that are dedicated to creating scientific and technological innovations. In other words, aiming to solve complex problems and transform entire sectors. Unlike startups that develop mobile apps or incremental innovations, deep tech companies seek significant breakthroughs. Therefore, in large areas such as biotechnology, artificial intelligence, nanotechnology, clean technologies, space technology, advanced mobility and robotics.
The growth of Deep Tech in Latin America
In recent years, Latin America has been the scene of a true explosion of innovation in deep tech. Countries such as Argentina, Brazil, Chile and Costa Rica have led this movement, bringing disruptive solutions to the global market. The study “Deep Tech: the new wave”, by IDB Lab, points out that biotechnology and artificial intelligence are the main drivers of this growth. In other words, today it already accounts for more than 70% of deep technology innovations in the region.
Argentina: leader in Deep Tech startups
Argentina is a powerhouse in deep tech in Latin America, home to a large number of innovative startups in this sector. Biotechnology is the flagship, with around two out of three companies dedicated to this area. Furthermore, Argentina has stood out in space technology, with companies such as Satellogic. Which creates high-resolution, low-cost satellite constellations for Earth observation. Also noteworthy is Auth0, a cybersecurity company. It recently reached the incredible market value of US$ 6.5 billion, the highest among deep tech startups in the region.
Brazil: potential on the rise
Brazil is the second country with the highest development of deep tech startups in Latin America. Although the number of companies is still smaller compared to Argentina, Brazil has a high market value for its startups. Biotechnology is one of the most prominent areas, representing more than half of the deep technology companies in the country. Furthermore, Brazil concentrates almost 80% of researchers in the region, which shows great potential for growth in this sector.
Chile: significant market value
Despite having a smaller economy compared to Brazil and Argentina, Chile surprises with deep tech startups. Today already valued at around US$ 2 billion. Chileans are focused on technologies such as biotechnology and artificial intelligence. With emphasis on NotCo, a company that uses artificial intelligence to develop plant-based foods. Thus, the space technology sector has also shown promise in the country, with initiatives such as Satellogic.
Costa Rica: the revelation in Deep Tech
A Costa Rica, apesar de ser um país pequeno em tamanho, não fica para trás no cenário de deep tech. A Establishment Labs é a startup mais valiosa do país e concentra cerca de 97% do valor de mercado do setor na região. Seu sucesso no desenvolvimento de tecnologias inovadoras na área de implantes mamários colocou a Costa Rica no mapa das startups de tecnologia profunda.
Mexico and Colombia: challenges and opportunities
Although Mexico and Colombia are two of the largest economies in the region, they both lag behind in developing deep tech startups. The low concentration of companies in this sector indicates a challenge to be overcome by these countries. However, with its manufacturing, venture capital and talent sectors. In this way, the potential for growth and innovation is enormous, and measures such as the creation of incentive policies and investment in startups. Which today can boost the development of deep technology in these nations.
Future perspectives on Deep Tech
Estimates indicate that biotechnology will continue to lead the deep tech sector in Latin America. Given the region's direct connection with agriculture, food production and biodiversity. However, artificial intelligence, nanotechnology, clean technologies, space technology, advanced mobility and robotics also have the potential for significant growth. The IDB Lab emphasizes that deep technology is far from science fiction and that it will bring significant improvements to people's lives.
Conclusion
Latin America is becoming a hotbed of innovation in deep tech, with disruptive startups and revolutionary technologies with the potential to impact the world. Countries like Argentina, Brazil, Chile and Costa Rica are leading the way. Thus, driven by an entrepreneurial culture, investments in research and development. As well as policies to encourage innovation. In other words, the future of deep technology in the region is promising, and it is important to closely monitor the advances and discoveries of these visionary companies.
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