Guide gathers information on 40 Biotechnology Healthcare startups in Brazil

As part of the Brazilian mission agenda to Switzerland, to explore collaboration and business opportunities in the biotechnology field, the "Guide to Biotechnology Healthcare Startups in Brazil" was launched on Wednesday (24th) at Pupella & Innovation Garage in Basel. The publication, prepared by Sindusfarma, the Brazilian Pharmaceutical Innovation Network (RBIF), and Biominas Brasil, presents an overview of Brazil's biotechnological innovations, investment scenarios, and regulatory frameworks, targeting investors, researchers, and policymakers interested in establishing partnerships.
  • Read and download the Guide here
The Guide features profiles of 40 startups. The data and analysis in the publication are based on contributions from 69 biotechnology startups across the country, which responded to a questionnaire on topics such as market needs, innovation capacity, and readiness for international collaboration.
The startups' activities predominantly focus on the analysis and diagnosis of treatments, therapies, and pharmaceutical and chemical products, as well as efforts in innovation to enhance the country's healthcare services.
In this context, the solutions provided by startups show promising potential for treatments related to areas such as Well-being and Aging, Dermatology, Medical Devices, Chronic Diseases, Neglected Diseases, Rare Diseases, Genetics, Oncology, and Digital Technologies, including Cloud Computing, Artificial Intelligence, and Geoprocessing.
Where they are located
The Southeast hosts 64.1% of the startups highlighted in this publication, especially in major cities like São Paulo, Belo Horizonte, and Rio de Janeiro. Following are the South (14.1%), Northeast (9.4%), Midwest (7.8%), and North (4.7%) regions.
The data reflect a considerable disparity among regions but also present the potential for growth and expansion in various ecosystems for biotechnology innovation in Brazil.
Diversified sources of funding
"Public Financing" emerges as the most dominant source among healthcare startups in Brazil, with 30.2% of them receiving government funding. Following closely, with 28.3%, are "Own Resources/Bootstrapping," indicating a significant degree of self-financing among entrepreneurs.
Also listed are "Other Private Investments" (18.26%), "Angel Investment" (10.3%), "Grants" (7.9%), "Venture Capital" (7.1%), and "Corporate Venture Capital" (2.38%).
This overview of investments suggests a cautiously optimistic environment for startups, characterized by a growing influx of capital, yet still reserved. Recent trends indicate that investors are starting to commit more substantial funds, drawn by the high quality of these Brazilian companies, vast market potential, and relatively lower development costs.
Revenue strategies
The Guide to Biotechnology Healthcare Startups in Brazil also brings together the main preferred revenue models of participating startups, along with the strategic considerations driving such choices.
The "Business-to-Business (B2B)" model leads with 51.9%, indicating a primary focus on direct sales to other companies. Following are "Business-to-Business-to-Consumer (B2B2C)" at 18.87%, where startups partner with companies to reach end consumers, and "Direct to Consumer (B2C)" at 15.09%, with direct sales to the consumer market.
Also listed are "Business-to-Government (B2G)" at 6.6%, "Software as a Service (SAAS)" at 2.83%, "Business-to-Business-to-Government (B2B2G)" at 1.89%, and "Other Revenue Models" at 1.88%.
The predominance of B2B transactions indicates the sector's preference for leveraging commercial partnerships, while the significant representation of B2B2C and B2C models illustrates diverse market engagement strategies.
Global expansion
Regarding the preferred internationalization strategies by startups, there is a highlight for "Co-Development Partnerships," which, at 45.9%, indicate a strong inclination towards collaborative development projects with foreign partners.
Another method considered effective for entering foreign markets is "Direct Investments," emphasizing the value placed on establishing a direct presence in other countries.
Also mentioned are "Internationalization to Switzerland" (11.48%), due to the robust biotechnology ecosystem found in the European country; "Export" (6.56%), and "Joint Ventures" (3.28%).
Company development stages
Another important analysis is associated with the technological development stages of each participating startup, using the Technology Readiness Levels (TRL) as a parameter, from initial research to full commercialization.
More than half of the startups, at 54.93%, are in the "Validation Phase," where their technologies undergo rigorous testing to confirm that their fundamental principles work under specified conditions.
In the "Traction Phase," where 19.72% of companies are located, products or services begin to gain steady acceptance and increased use in the market, signaling the early stages of growth and adoption by the customer.
Next, with 18.31%, the "Scaling Phase" gathers startups with fully developed technologies, with models and prototypes already tested and validated in real environments.
The "Ideation Phase" is the smallest segment at 7.04%. Here, startups focus on conceptualizing and exploring potential technological solutions, based on the preliminary exploration of viable concepts.