Biotechnology
Current scenario for biotechnology investment
What is Biotechnology?
Biotechnology is an ancient technology that dates back thousands of years and has evolved over time to become one of the most innovative and promising areas of modern science.
Read more in our blog post.
Global biotech market
The global biotechnology market has grown and is expected to continue to expand for the foreseeable future, according to a report by Allied Market Research. It is expected to reach $2.44 trillion by 2027, with a compound annual growth rate of 15.1% between 2020 and 2027.
Latin America
The biotechnology industry in Latin America and the Caribbean has great potential in sectors such as agriculture, biomedicine and the food industry. It is expected to reach $15.5 billion by 2023, with a compound annual growth rate of 10.4% between 2016 and 2023.
Brazil, Mexico, Argentina and Chile are the leading countries in the region for this market and are expected to continue to lead in the future. Increasing demand for biotech products and investment in research and development are expected to continue to drive market growth.
Reduced funding sources
Investment in biotechnology research and development in the region represents only 2.5% of global investment. In addition, private investors require a share of 5% or more, which limits access to financing for emerging biotechnology companies.
Limited investment access
Only 3% of total investment in biotechnology in Latin America goes to start-ups, limiting access to funding new companies. Most of the investment comes from large companies and venture capital funds, which hinders the development and commercialization of new technologies and innovations. This also limits investment opportunities in companies with high long-term appreciation potential.
Decentralized financing
Decentralized finance (DeFi) for science is an innovative way to fund scientific research projects using blockchain and a decentralized network of investors, rather than depending on traditional funding sources such as governments, foundations or corporations.
Decentralized funding allows anyone with a digital wallet to participate in funding scientific research projects, meaning that they can receive funding from a broader base of investors around the world.
This also reduces reliance on centralized and limited funding sources. In addition, decentralized funding for science uses cryptographic tokens to represent the ownership and value of research projects.
These tokens can be freely exchanged, which facilitates liquidity and value transfer. It also offers transparency in the funding process, as all transactions are recorded on the blockchain, allowing for greater responsibility and accountability.
Decentralized finance (DeFi) and tokenized incentives are tools that can increase startup investment and applied research, and tokens can be used as rewards for investors who provide early-stage capital for a company or project.
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