Investment in Asia biotechnology startups is on the rise, with those operating in the food, agriculture, bioenergy, and biomaterials spaces across the Asia-Pacific raising nearly $3.5 billion in the last three years, up over 140% against the three years prior.
Much of this increase is down to local government policies supporting biotech development, especially in China and India.
China’s last two Five-Year Plans have prioritized biotechnology investment, especially the 13th (2016-2020), which shaped the country’s biotechnology strategy by focusing on developing the capabilities and infrastructure needed to jump-start a mature biotechnology ecosystem, including talent development and establishing high-tech science parks. The 14th Five-Year Plan (2021-2025), included milestones and goals for a “whole-of-nation effort” to accelerate biotech innovation, supported by various financial incentives.
In India, the Biotechnology for Economy, Environment, and Employment policy (BioE3) was approved this summer on the back of more than 10x growth in the country’s bioeconomy to $130 billion in 2024. BioE3’s goal is to reach $300 billion by 2030.
In 2024 so far, AgFunder’s two main biotech categories — Ag Biotech and Bioenergy & Biomaterials — raised $935 million across 87 deals in Asia-Pacific in 2024, representing 22% of all investment across the region. They were also the best-funded upstream categories in Asia-Pacific.
Although total Asia-Pacific biotech funding in 2024 is down 24% over the same period last year, more deals have closed — 87 versus 70 — emphasizing increased activity, albeit in smaller deals. The median in 2023 was $5 million some 213% higher than in 2024.
More deals closed at the Series A stage deals were more numerous in 2024 than in 2023 accounting for 36% of deal activity (up from 16%). But there were fewer seed stage rounds, down to 28 from 39. Combined, seed and Series A deals accounted for 68% of deal activity.
"Historically, these technologies were sidelined due to complex regulatory environments, high capital requirements, and a lack of understanding of their potential impact," Mark Kahn, managing partner at leading Indian agrifoodtech VC Omnivore tells AFN. "Now, with accelerating climate challenges and a global pivot towards decarbonization, venture capital is recognizing these domains as strategic investments that can simultaneously address food security, energy transition, and climate resilience."
Splitting out the AgFunder categories -- Ag Biotech, which includes on-farm inputs for crop & animal agriculture, utilizing technologies like genetics, microbiome, breeding, and animal health -- and Bioenergy & Biomaterials, which comprises non-food extraction & processing, feedstock technology, and cannabis pharmaceuticals, we can see that both categories are still quite volatile.
The chart below compares the performance of the two Asia biotechnology categories over the last 10 years.
In 2023, China dominated both categories, but in 2024 to date, India has emerged as a significant competitor, ranking first in Bioenergy & Biomaterials and accounting for 79% of all investments in the category. In the year to date, India has raised $374 million across nine deals, up 128% in total funding in the category over the same period last year.
"The significant growth in life sciences in India over the last couple of years is not just a financial metric but a testament to India's potential to leapfrog traditional development models," says Kahn. "We're witnessing a convergence of technological innovation, policy support, and urgent environmental imperatives, making these sectors incredibly attractive. From advanced biomaterials that can replace petroleum-based products to agricultural biotechnologies that can enhance crop resilience and reduce chemical inputs, these technologies represent our most sophisticated and pragmatic response to the interconnected challenges of climate change, food production, and sustainable economic growth. For venture capital, this is no longer about incremental improvements but fundamental system redesign and India is emerging as a global laboratory for these critical solutions.”
China still accounts for 85% of all funding in Ag Biotechnology in the region thanks to $391 million of capital raised across 32 deals, up 46% compared to the same period year-on-year.
"In 2024 we’ve seen a notable shift in agrifoodtech investment in China towards upstream biotech innovations," said Matilda Ho, managing director at Bits x Bites, China’s leading agrifoodtech venture capital firm. "Significant deals like SciGene's RMB 1.65 billion funding from Tongwei Group, along with government-backed investments in Maxvax and MoonBiotech, reflect the country’s commitment to food security and a sustainable bioeconomy."
Japan is another Asian country that has performed well in both categories in 2024, growing 238% in total funding year-over-year for Bioenergy & Biomaterials over the same period last year, reaching over $65 million across five deals. The country also recorded an impressive 1754% growth in total funding in Ag Biotech in 2024 over the same period last year, raising $24 million across 11 deals from a single $1.3 million deal the year before.
Singapore investment dropped almost 48% year-over-year in Bioenergy and Biomaterials, closing just a single large deal worth $20 million. Singapore closed just two Ag Biotechnology deals in 2024.
Top 5 Asia biotechnology deals in 2024
Indian SAEL raised $299 million in Debt in July. The Bioenergy & Biomaterials company focuses on green energy projects including waste-to-energy technologies, aiming to reduce carbon footprints and promote energy independence.
Chinese Scigene raised $232 million in February with a late-stage round. The Ag Biotechnology company focuses on pig breeding utilizing advanced technologies like genome selection and multi-omic breeding.
Japan’s Spiber closed a $65 million late round in April. The Bioenergy & Biomaterials startup develops novel materials through microbial fermentation utilizing agricultural feedstocks as primary raw materials.
India’s GPS Renewables raised $49 million via debt financing in April. The Bioenergy & Biomaterials startup seeks to solve the urban waste problem by utilizing biodegradable waste from mass kitchens in large cities to produce energy via a proprietary bioreactor.
Chinese MoonBiotech raised 42 million via a series C round in February. The Ag Biotech company is committed to discovering, preserving and identifying new microbial diversity resources through advanced microbial separation and cultivation technologies.
These insights were pulled from AgFunder's Asia-Pacific AgriFoodTech Investment Report 2024, which was produced in partnership with by Omnivore. Bits x Bites provided data for the report too.
