Global Microbiome Investment Active... "12-Fold Increase in Investment Amount Over 6 Years"

[Asia Economy Reporter Ji-hwan Park] Last year, investment in the global microbiome market reached $371 million (approximately 430 billion KRW), about 12 times higher than the $31 million recorded in 2013. The microbiome refers to the total microorganisms present in a specific environment and is known to contain up to 4 million gene information.

According to the report "The Revolution Brought by the Microbiome" published by Samjong KPMG on the 15th, the number of investments in the global microbiome market last year was 30, more than four times the 7 investments made in 2013. While all 7 investments in 2013 were made by venture capital (VC), last year saw diversification with 24 VC investments, 3 corporate mergers and acquisitions (M&A), 2 private equity (PE) investments, and 1 initial public offering (IPO).

Last year's investment amounts were $220 million from VC, $82 million from PE, $75 million from IPO, and $12 million from M&A. In the early 2010s, investments were mainly made by VCs, but recently, companies in the United States and Europe have been raising funds through various investment methods such as IPOs.

Samjong KPMG identified key application areas of the microbiome including food and beverages, cosmetics, and healthcare encompassing therapeutics and diagnostics. Health functional foods like "probiotics" and Lanc?me's "New Advanced G?nifique" product also use the microbiome as a raw material. It is used as a treatment for a wide range of diseases including digestive, infectious, metabolic diseases, and cancer.

Byun Young-hoon, Vice President and Leader of the Pharmaceutical and Bio Industry at Samjong KPMG, emphasized, "For domestic companies to enjoy the first-mover advantage through proactive investment, large corporations need to secure the technological capabilities of venture companies, and domestic startups need to secure investment funds from domestic and foreign companies." He added, "M&A and IPO will play a key role in establishing a virtuous investment ecosystem in the domestic microbiome market."

This content was produced with the assistance of AI translation services.