Reasons for Investor Interest in Microbiome Startups

In the midst of market uncertainty in the value of digital currency or crypto, the digital business metaverse does not yet have a clear direction and the growth of the social media industry is not as potential as before. The microbiome is an area of ​​interest that has grown in various industries as numerous studies have linked it to human disease and high unmet consumer needs. In a simple sense, the microbiome is a complex ecosystem consisting of microorganisms such as bacteria, viruses and fungi that live on the inner surface of all living things, including humans. This has led thousands of companies worldwide to focus their attention on the topic.

In December, Crunchbase, a website with data on more than 500,000 large companies and startups, captured statistics around increased funding for startups focused on uncovering the link between human health and the gut microbiome. More than $1 billion has been invested in this US startup in the last five years. Meanwhile worldwide, microbiome therapy and diagnostics companies have collectively attracted over $6 billion in investment to date with more than 80% of the 233 recorded financial rounds occurring in the last five years by nearly 300 different investment firms.

Some of the reasons Startup Microbiome is in demand :

  1. Stable recurring income potential opportunity: which comes from consumers taking the pill every day or food manufacturers using it as an additive to control insulin, improve digestion or try to lose weight.
  2. Rules or regulations that are not strict. Ingredients in general use must be considered safe and manufacturers cannot market supplements that are more effective than research suggests, but regulation is less stringent than pharmaceuticals and foods.

Microbiome Startup in Indonesia

The vitamin-producing startup Youvit raised US$6 million in series B funding at the end of October. These funds come from Unilever and Indian conglomerate Wipro Consumer Care & Lighting. Wipro Consumer Care & Lighting enters through a business unit in the field of venture capital. Likewise with Unilever through Unilever Ventures.

In 2020, East Ventures announced seed funding at Nusantics genomics technology startup. This startup claims to be the first local startup that can analyze microbiome profiles.

East Ventures also injects Startup Nalagenetics. This startup carries biotechnology products, by analyzing genetic data and producing products in the form of personalized medicine, nutrition and screening.

Also read other articles about Start-ups, business, innovation, and technology on the Ideanation website

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