LADP outlines roadmap to boost Latin America Deep Tech ecosystem

The Latin American Dynamism Project (LADP) has released a comprehensive report analyzing financing trends, regulatory frameworks, and geopolitical shifts across 18 countries. The findings highlight unprecedented growth in early-stage Deep Tech startups in Latin America, while exposing the persistent “valley of death” these ventures face when scaling. The report proposes a roadmap to strengthen the regional ecosystem, positioning Latin America as a future hub of scientific and technological innovation.

Early-Stage Momentum, but Scaling Remains a Challenge

According to the LADP, 72% of startups remain at the seed stage, while only 19% reach Series A. A mere 22 ventures (9%) have advanced to Series B or beyond in the entire region’s history.

 “We have the talent, the natural resources, and the initial momentum, but we are failing at the crucial moment where science must become industry,” explains Marcus Alburez, co-author of the study.

Sector and Geographic Insights: Biotech Dominates, Brazil Leads

The report shows biotechnology leading the way, 

• Representing nearly 60% of all Deep Tech startups
• Followed by artificial intelligence (10%)
• And other fields such as nanotechnology, cleantech, and aerospace (5% each)

On the geographic side, São Paulo stands as the main innovation hub, hosting 329 ventures. In Brazil, 70% of Deep Tech funding comes from government programs, mirroring a regional pattern where 60% of R&D investment depends on public support. Meanwhile, Chile emerges as a fast-maturing ecosystem with 251 startups (10%), driven by both public and private initiatives.

Why International Capital Remains Cautious

The LADP also reveals that Latin American Deep Tech startups are valued significantly lower than global peers, despite equal or stronger metrics. Data from the MSCI Index shows regional firms trade at a 50% discount compared to the global average and 27% below other emerging markets.

Alburez highlights investor skepticism: “U.S. investors are used to evaluating technology from Stanford, MIT, or Harvard. When a founder comes from a Brazilian or Chilean university with equally strong research, they face biases that prolong due diligence and limit access to growth capital.”

China’s Growing Influence in Regional Deep Tech

Beyond financing, the report underscores the geopolitical dimension of Latin America’s technological development. Between 2018 and 2023, Chinese projects in the region increased by 33%, focusing on “New Infrastructure” such as telecommunications, fintech, and renewable energy.

China also announced a $138 billion sovereign fund targeting AI, clean energy, and advanced manufacturing, extending its global footprint. 

“China’s advance in Deep Tech is part of a calculated strategy to strengthen its economic influence. Latin America must decide whether to be a battleground or an actor with its own voice in the next technological era,” says co-author Leonardo Quattrucci.

Roadmap to Close the Gaps

To overcome structural challenges, the LADP proposes 20 key recommendations. Among the most notable:

• Venture building programs that pair scientists with experienced operators, inspired by the GridX model that has co-founded 81 companies.
• Creation of a “34th Regime", an unified regulatory framework allowing startups to operate seamlessly across Latin America.
• Mobilization of regional pension funds (over $10 billion annually) toward Deep Tech through specialized vehicles, replicating successful models from France and the UK.
• A geopolitical strategy of technological autonomy, leveraging middle powers such as Israel, Singapore, South Korea, and the UAE to access capital and technology without compromising regional independence.

Towards a Stronger Deep Tech Ecosystem in Latin America

The LADP stresses that Latin America’s future competitiveness depends on transforming scientific innovation into scalable industries. By combining talent, capital mobilization, and strategic alliances, the region can overcome valuation gaps, attract international investment, and establish itself as a global Deep Tech hub.