The deep tech ecosystem in Latin America and the Caribbean, currently valued at US$8 billion, is predicted to expand twenty times in the next ten years, according to a study examining 340 funded startups.
Deep tech companies, grounded in significant technological advancements and scientific breakthroughs, carry a higher risk but also promise solutions to global challenges.
These firms have secured US$2 billion in funding from 65 deep tech funds and accelerators, creating an ecosystem of over 10,000 jobs.
Chile is noted as the region’s premier deep tech ecosystem, housing 65 startups with venture capital backing.
These companies amount to a combined worth of US$2 billion, contributing 25% to the region’s total ecosystem value.
Notably, NotCo, an AI-based food tech startup, is among the country’s leading firms.
The study suggests artificial intelligence could enhance the region’s annual knowledge-based service exports to US$100 billion and potentially increase GDP by 4% via private R&D contributions.
Currently, a majority of startups (61%) are focusing on biotechnology, with artificial intelligence (11%), nanotechnology (6%), clean technologies (5%), and other areas also showing growth.
This diverse spread of technologies is projected to further broaden and flourish, facilitated by advancing platforms and decreasing costs.