Endeavor launches unprecedented study on the Biotech ecosystem in Brazil

Biotechs are transforming large market segments connected to global challenges, and Brazil is on the way to being the largest power in Latin America on this front Endeavour, a global organization supporting high-impact entrepreneurship, in partnership with the Emergebased on data from 135 founders, 94 companies and interviews with more than 30 experts, the Biotech Report Brazil it brings data and analysis on the future of biotechs in the country and marks the beginning of the participation of the sector in the portfolio of companies supported and selected by Endeavor.

The study lists the conditions that will allow Brazil to be the leader in the segment: it is the largest CV market in Latin America, with the largest scientific production hub and also the most biodiverse country in the world, being the 3rd in food production, in addition to having a strong public health system. 

“Oecosystem has already gone through some waves of technology, with Brazilian cases that are global references such as Nubank, 99 and VTEX. Now we are entering a wave of frontier technologies, which are transforming large market segments connected to global challenges & Brazil has comparative advantages that position it to be a leader in the region and in the world of”, explains Maria Fernanda Musa, Business Acceleration Director at Endeavor Brasil.

Opportunities and challenges of biotechs

The Brazil Biotech Report ranks startups in the industry in four main segments:

• Food Production & Biotechs that develop new food alternatives, such as vegetable proteins and cultured meat Cellva, for example, it is cited as the first brazilian biotech to integrate a european incubator focused on ingredient technologies.
• Agro Production Chain & Production Startups that make agricultural production more efficient and sustainable. A highlight is the Galy, which has developed a high quality cotton without the environmental impacts of natural fibers.
• Life Sciences (Human and Animal) ^ Solutions for diagnosis, treatment and prevention of diseases. A gen-tfor example, it is creating the largest and most diverse genetic bank in Latin America.
• Chemical and Material Inputs & Materials Production of bioplastics, industrial enzymes and bioenergy in a sustainable way.

Timing and capital challenges in the ecosystem

The report also highlights that biotechs face unique challenges, mainly due to the high scientific risk and the need for significant investments before commercialization. These companies require a more robust capital structure, given the long period of testing: “The evolution of a biotech does not follow the same model of (prototype’ of a digital app, any error is fatal. We are talking about one to two years for sectors such as agro and seven years in biotechs aimed at human health to reach the market. But the waiting reward (those that work have great potential for growth”, explains Maria Fernanda.

In Brazil, government support is essential in the early stages, but startups need to attract private capital to scale. The study points out that there is a lack of specialized investors, but not necessarily capital & & & & & & & & & & & & & & . 11 Times more investment than biotechs, and yet, the country receives 60% of all capital for biotechs in Latin America.

The report also highlights the importance of Brazilian biotechs positioning themselves globally from the beginning to access markets, technologies and customers. This is because internationalized companies capture more investments, and most of those that have reached Series A and B have operations outside Brazil. On the other hand, only 12% of biotechs founded by Brazilians today have operations in other locations.

The role of academia and the profile of the scientist entrepreneur

The profile of the leadership of biotechs was also analyzed: more than 54% of them are led exclusively by academics, 15% exclusively by market entrepreneurs and 31% with a mix of profiles occupying the positions of C-Level. Women, in particular, tend to have a more robust academic profile. The report emphasizes that success in the sector requires a balance between scientific knowledge and market skills 311 companies led by mixed teams have shown greater volume in fundraising, especially in seed and Series A valuations. However, they are the companies led by academic technologies that have had greater tendency to capture Beps in high-line.

It is also possible to observe that Brazil has a high-production scientific community, but the conversion of this research volume into business is still limited. The country is the 5th in the world in publications in the areas of biosciences and agro, but occupies only the 9th place in the global number of founded biotechs, according to research by Ernst & Young (EY), lagging behind, for example, the United States, France and Spain. Given this, it is important to make the Brazilian university more entrepreneurial, bringing researchers closer to the market and strengthening international collaboration between universities