The staff at Ocean Exchange recently connected with Ben Zehr and Karine Yuki of Reciprocal Studio. They are identifying and energizing ocean based innovation in Latin America and the Caribbean (LAC). We’ve long sought a wider network in Latin America and welcome this new connection. Read their business case for all of us to take a long look at opportunities in the region. We wish them all the best in operationalizing their 2030 vision.
Latin America and the Caribbean (LAC) is a nature powerhouse, harboring 30% of the planet’s biodiversity, 20% of the world’s mangroves, and vast marine ecosystems. These natural resources support over 200 million people whose livelihoods are disproportionately at risk from climate shifts that are already underway. Despite this vulnerability, and in part because of it, LAC represents an enormous opportunity for innovation in the blue economy. Looking at the data however, we find that LAC receives less than 4% of marine philanthropic funding globally and less than 2% of climate venture funding.
This funding gap persists despite the region’s competitive advantages: top-tier engineering and research talent, laboratories for innovation provided by its diverse ecosystems, and global maritime industries that rely on LAC’s waters for their profitability. At Reciprocal, we see a generational opportunity to unlock the region’s potential to develop breakthrough technologies, leveraging a cost advantage in deep tech R&D, and a generation of top tier engineers, scientists, and professionals committed to a sustainable future for LAC.
Chile: A Case Study in Blue Innovation
Chile exemplifies LAC’s blue economy potential, as a confluence of economic stability, strategic geography, established marine industries, and technical talent. With internationally recognized university programs and 25% of its graduates in STEM, Chile produces world-class talent at 40-60% lower cost than Silicon Valley or European innovation hubs. What does this mean, practically? An early investment of $500,000 can be equivalent to $1.5M or more in salaries, prototyping, testing, and compliance costs in comparison to a US or European innovation hub – a compelling value proposition.
These advantages, alongside natural endowments and favorable policy, unlocked Chile’s aquaculture sector. Its 4,300+ km coastline and the pristine waters of Patagonia have helped it become the world’s second-largest producer of farm-raised salmon and mussels. Thanks to public-private investment in the development of the aquaculture industry, a startup ecosystem has sprung up in northern Patagonia, with ventures using biotechnology and satellites to tackle challenges from sea lice and algal blooms. Meanwhile, Chile’s regionally specialized port system creates ideal conditions for testing targeted maritime technologies with global applications.
Opportunities to Accelerate Blue Innovation in LAC
The success in Chile’s south demonstrates how the recognition of natural advantages and long term vision can launch entirely new blue economy sectors, and offers a replicable model for the rest of LAC. The region is full of natural possibilities – Brazil’s “Blue Amazon” maritime territory generates US$286 billion annually, Mexico produces 220,000 STEM graduates every year, and Colombia’s complex marine spatial mapping efforts span both Atlantic and Pacific coasts, generating a mountain of useful data. Moreover, as adaptation becomes more crucial in a changing climate, creative solutions from the frontlines of the crisis represent a powerful opportunity to generate both prosperity and resilience for those same communities who rely on the blue economy for their livelihood.
Our internal research has identified four key opportunity areas for LAC:
- Early-stage, catalytic funding can be transformative: While fintech and e-commerce captured two thirds of LAC venture funding in 2024, cleantech secured only 1.6%. Early-stage, non-dilutive capital could be transformative.
- Building bridges with Global North expertise: Over 80% of ocean-specific funds are headquartered in Europe or the United States, creating barriers for LAC startups to access mission-aligned capital and specialized knowledge.
- Strategic corporate partnerships: 91% of ocean startups in LAC are B2B ventures serving industrial clients, yet many struggle to structure meaningful partnerships. Early corporate engagement could double startup success rates in the region, as they have been shown to in biotech.
- Creating commercialization pathways: With over 70% of all blue economy deals between 2000-2023 occurring in Europe, LAC innovators lack regional success stories and established pathways to market. An understanding of how land-based technologies can find maritime applications, for instance, can create pathways for innovators to engage with industry.
Our Approach
Reciprocal provides hands-on, sustained support by working with corporate, financial, and government partners to unlock innovation from Latin America & the Caribbean, to the world. We combine our global networks with deep regional and climate expertise, bringing together resources, technical validation, and corporate partnerships to dramatically reduce time-to-market.
Our vision is bold – to enable 100+ blue economy startups in LAC by 2030, mobilize US$600M+ in capital, and establish the region as a global leader in blue innovation. This represents not just an environmental imperative but a transformative economic opportunity worth 5% of GDP across LAC.
Join forces with us to create sustainable ocean-based solutions. Connect with our team at info@reciprocal.studio.
