Top 15 Trends for Deeptech Startups in South America in 2025
South America is poised for a transformative leap in its deeptech startup ecosystem by 2025. With significant advancements in technology, increased investment, and a focus on social impact, the region is becoming an attractive hub for innovation. Here are the top 15 trends for deeptech startups in South America to look out for in 2025:
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1. Artificial Intelligence (AI) and Generative AI Adoption
Trend: Rapid adoption of AI, particularly generative AI, across various sectors, including customer service, marketing, healthcare, finance, and manufacturing.
Data Points:
- Growing use of AI-powered virtual assistants for customer service.
- Increased adoption of AI-powered chatbots for marketing and sales.
- Demand for personalized AI solutions tailored to local cultural and demographic preferences.
- AI solutions being used in healthcare to improve patient outcomes and reduce costs.
- Financial institutions leveraging AI for fraud detection and risk management.
- AI is estimated to boost the region's GDP by more than 5% by 2030.
- The number of AI companies reached 279 by 2023.
- Learn more about AI in South America
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2. Biotechnology and Life Sciences Advancements
Trend: Growing investment and innovation in biotechnology, including areas like biopharmaceuticals, diagnostics, and agricultural biotech.
Data Points:
- Biotech is highly dependent on investments, with Argentina, Brazil, Chile, and Mexico leading this growth.
- More than 500 biotech companies exist in Brazil alone.
- Latin American companies have access to top scientists and resources at lower costs compared to the U.S.
- 61% of deep tech companies in the region focus on biotechnology.
- Startups are emerging in bio-agro, health, pharmaceuticals, diagnostics, and medical devices.
- Discover more about biotech innovations
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3. Cleantech and Sustainability Innovations
Trend: Increased focus on cleantech startups addressing climate change, renewable energy, and sustainable agriculture.
Data Points:
- The cleantech innovation ecosystem in Latin America is getting younger.
- Chile and Brazil are leaders in venture investments within cleantech.
- A quarter of companies on the LATAM Cleantech 25 list focus on innovations for resilience.
- Startups are integrating technology into agriculture to enhance productivity and sustainability.
- Latin America contributes only 3.5% of global CO2 emissions while accounting for 5.5% of global industry value added.
- Learn about cleantech developments
4. Fintech Innovation and Digital Banking
Trend: Continued growth in fintech, focusing on digital banking, payment solutions, and financial inclusion.
Data Points:
- In 2024, Latin America’s startup investment saw a 27% increase, with fintech leading the recovery.
- A digital-only bank reported a net income of $553 million, an 83% year-over-year increase in Q3 2024.
- The number of fintech companies in Uruguay increased from 6 in 2018 to 65 by 2024.
- Fintech leads startup funding in the region in 2024.
- Read about fintech trends in South America
5. Deep Tech Hubs and Ecosystem Growth
Trend: Emergence of specialized deep tech hubs fostering collaboration between startups, research institutions, and investors.
Data Points:
- Deep tech hubs are emerging, fostering collaboration and knowledge sharing.
- Leading innovation hubs include São Paulo, Mexico City, Bogotá, and Buenos Aires.
- Montevideo is known for its innovation-friendly policies.
- Medellín has transformed into a prominent tech hub.
- Explore deep tech hub developments
6. Increased Investment in Deep Tech
Trend: A rise in venture capital, angel investors, and government initiatives supporting deep tech startups.
Data Points:
- Institutional investment in LAC reached USD 2 billion by 2023.
- Investment increased by nearly 600% between 2019 and 2023.
- Deep tech venture capital investment could increase 20 times in the next decade.
- Investments grew from US$96 million to US$172 million between 2020 and 2022.
- 340 regional deep tech startups secured US$2 billion in institutional investment.
- Find out more about investment trends
7. Cross-Sector Collaboration
Trend: Increased collaboration between industries such as agriculture, healthcare, energy, and finance with deep tech startups.
Data Points:
- Industries are partnering with deep tech startups to leverage advanced technologies.
- Biotech development heavily relies on collaboration between sectors, friendly public universities, and industries.
- Learn more about cross-sector collaboration
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8. Focus on Social Impact
Trend: Deep tech solutions being developed to tackle social challenges such as healthcare accessibility, education, sustainability, and poverty alleviation.
Data Points:
- Deep tech solutions are addressing healthcare accessibility and local/global issues.
- Startups are focusing on developing solutions for pressing social challenges.
- Explore more on social impact initiatives
9. Government Support and Policies
Trend: Governments implementing supportive policies, funding programs, and regulatory reforms to foster deep tech innovation.
Data Points:
- Governments offer tax incentives and acceleration programs to support startups.
- Countries like Colombia and Chile provide funding and tax benefits for startups.
- Financial inclusion efforts align with the growing digital bank ecosystem.
- Find out more about government initiatives
10. Internationalization and Global Ambitions
Trend: Latin American deep tech startups looking to expand into international markets, with the US and Europe as key targets.
Data Points:
- 51% of Latin American startups by market value have international strategies.
- Many internationalize first to neighboring countries and then to the US and Europe.
- Startups aim to expand into larger regional markets beyond their borders.
- Discover internationalization efforts by startups
11. Quantum Computing Development
Trend: Growth in quantum computing initiatives, with startups exploring hardware, algorithms, and applications.
Data Points:
- South America is beginning to explore governmental incentives for quantum research.
- Increased collaborations with universities focusing on quantum physics.
- Startups are developing algorithms aimed at specific industries such as finance and healthcare.
- Key partnerships are emerging with global tech firms for knowledge exchange.
- Explore quantum computing initiatives
12. Cybersecurity Innovations
Trend: Increased focus on cybersecurity solutions, as digital transformation accelerates across industries.
Data Points:
- Cybersecurity startups are addressing rising threats among digital platforms in finance and health.
- Growing demand for compliance and security measures in fintech services.
- Partnerships with governmental organizations for frameworks and regulations are emerging.
- Enhanced training programs for burgeoning cybersecurity professionals.
- Find out about cybersecurity developments
13. Augmented and Virtual Reality (AR/VR) Applications
Trend: Growth in AR/VR technologies for sectors such as education, therapy, healthcare, and gaming.
Data Points:
- AR/VR startups are enhancing educational experiences and vocational training.
- The healthcare sector is leveraging AR for surgical procedures and patient care.
- Gaming startups are significantly increasing investments due to growing demand.
- Partnerships with institutions for research in AR/VR applications are gaining traction.
- Explore AR/VR in South America
14. Space Tech Growth
Trend: Emerging interest and investment in space technology, including satellite development and space exploration.
Data Points:
- Latin America is witnessing the launch of more small satellites for various applications.
- Collaboration with international space agencies for research projects is increasing.
- Startups are focusing on environmental monitoring and data analytics driven by satellite technology.
- Investment in space tech is becoming attractive to venture capital firms.
- Learn more about space tech trends
15. Healthtech Innovations
Trend: Expansion of healthtech solutions aimed at improving healthcare delivery and access.
Data Points:
- Growing number of startups focusing on telemedicine solutions and mobile health applications.
- Digital health records are increasingly implemented to enhance patient care.
- Collaborations between tech firms and healthcare providers to improve interoperability are emerging.
- Health analytics startups are using AI to predict trends and improve outcomes.
- Discover more about healthtech innovations
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FAQ
Q: What is the current trend in artificial intelligence among deep tech startups in South America?
A: The trend is a rapid adoption of AI, particularly generative AI, across various sectors such as customer service, marketing, and healthcare. AI is estimated to boost the region's GDP by more than 5% by 2030. Learn more about AI adoption.
Q: How is biotechnology developing in South America?
A: Biotechnology is seeing significant growth with over 500 biotech companies in Brazil alone, focusing on biopharmaceuticals, diagnostics, and agricultural biotech. 61% of deep tech companies are involved in biotechnology. Explore biotechnology advancements.
Q: What are the cleantech innovations emerging in South America?
A: There is an increased focus on cleantech startups addressing climate change and sustainable agriculture. Chile and Brazil are leaders in investment for cleantech solutions that integrate technology into agriculture and target climate resilience. Learn more about cleantech innovations.
Q: What is the state of fintech innovation in Latin America?
A: Fintech continues to grow, focusing on digital banking and financial inclusion, with significant increases in startup investment. The fintech sector in Uruguay has notably expanded, reflecting strong recovery and innovation in financial services. Explore fintech innovation.
Q: How are deep tech hubs evolving in South America?
A: Specialized deep tech hubs are emerging, promoting collaboration among startups, research institutions, and investors. Cities like São Paulo, Mexico City, and Buenos Aires are leading in innovation and knowledge sharing within these ecosystems. Discover deep tech hubs.
Q: Is there a trend of increased investment in deep tech in Latin America?
A: Yes, there is a substantial rise in investment in deep tech, with institutional investment reaching USD 2 billion in 2023 and increasing by nearly 600% between 2019 and 2023, showcasing a promising environment for startups. Learn more about investment trends.
Q: How is collaboration between sectors affecting deep tech development?
A: There is an increase in cross-sector collaboration, with industries like agriculture and healthcare partnering with deep tech startups to enhance research and development initiatives. This is pivotal for advancing innovation across sectors. Explore cross-sector collaboration.
Q: What social impact are deep tech startups aiming to achieve?
A: Many deep tech startups focus on social impact solutions that address challenges such as healthcare accessibility, education, and sustainability, aligning with global and local needs for social change. Learn more about social impact goals.
Q: In what ways are governments supporting deep tech startups in the region?
A: Governments are implementing supportive policies, funding programs, and regulatory reforms, such as tax incentives, to foster innovation and encourage startup growth in deep tech. Discover government support initiatives.
Q: Are Latin American deep tech startups looking to expand internationally?
A: Yes, many Latin American startups are increasingly eyeing international markets for growth, with the US and Europe being key targets, indicating a strong ambition for global presence. Learn more about internationalization trends.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.