Deep technologies or Deep Tech can be related to fields such as artificial intelligence, machine learning, life sciences, nanotechnology, advanced robotics, renewable energy, among others. These companies focus on research and development of new solutions that can have a significant impact on various sectors. All areas are included, medicine, industry or agriculture, among others. From creating new foods, diagnosing a disease or creating constellations of satellites, involving artificial intelligence, everything is possible.
Deep Tech Startups, a growing trend
Deep Tech startups represent a new trend. They are emerging companies that focus on developing advanced technologies based on scientific discoveries or significant engineering innovations. These technologies are often disruptive and with a high degree of complexity, which differentiates them from conventional tech startups.
According to Ignacio Peña, author of a study titled “Deep Tech: The New Wave,” these technologies make things we previously only imagined possible. Such as, for example, diagnosing cancer from just a drop of blood.
Deep Tech in Latin America
In Latin America, the use of these cutting-edge technologies is on the rise. They expect biotechnology to lead the Deep Tech field in the region. A trend that is related to its close relationship with the agricultural sector and food production.
Latin America is home to a large number of startups, with Argentina, Chile and Brazil standing out as leaders in the Deep Tech arena. Together, they account for 80% of the total number of these companies, and Argentina stands out in particular with over 30% of all Deep Tech companies in the region.
In Costa Rica, an innovative startup focused on developing breast implants. Today, Establishment Labs and its advanced technology are listed on the New York Stock Exchange. In Chile, NotCo is a food company that has specialized in offering plant-based alternatives to animal meat.
Argentine startup Bioceres promises a revolution in agriculture. In the country, two out of three Deep Tech companies focus on biotechnology, while others, such as Satellogic, are dedicated to the development of space and satellite technology.
Argentina, Brazil and Chile lead the region with deep tech related startups.
Argentina has 103 specialized startups. Brazil, on the other hand, is home to 101 small companies with an appreciable market value, with almost half of them dedicated to biotechnology.
Likewise, Chile ranks third in number of startups in the region, but its companies have the highest estimated market value, reaching US$2 billion, which represents almost a quarter of the total in the region.
A large part of these Chilean companies are involved in biotechnology. Being a smaller country than Brazil and Argentina, Chile has 3.4 startups per million inhabitants. A good start for the development of Deep Tech.
Mexico and Colombia present a lag in the field of startups implementing this technology, with a concentration of only 0.2 startups per million inhabitants in both countries. Despite this, due to their economic relevance in the region, they have the opportunity to develop their potential in this field.