A ⏐ Deep Tech innovations offer solutions to profound societal challenges

What is Deep Tech and why should you be interested in it?

Deep Tech represents novel scientific/engineering breakthroughs...

...or advanced technology used to address novel customer needs.

These innovations offer solutions to profound societal challenges.

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Deep Tech can be classified into 8 investment themes

  • Novel AI

    Autonomous systems

    Explainable AI

    Privacy-enhancing tech

    Semantic AI

  • Future of compute

    Superconductors

    Quantum technologies

    Ambient computing

    Brain-computer interface

    AR/VR

  • Novel energy

    Green hydrogen

    Nuclear fusion

    Geothermal

    Next-gen solar

    Waste heat recovery

  • Space tech

    Launch

    Earth observation

    In-space manufacturing

    Nanosatellites

    Space mining

  • Robotics

    Humanoid robots

    Nanorobotics

  • Biotech, Foodtech & Agtech

    Synthetic biology

    Lab-grown food

    AI-enabled drug discovery

    Fertilizers

  • Defense tech

    Cybersecurity

    Drones

  • Advanced materials & nanotechnology

    Green concrete

    Graphene

    Nanomaterial

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B ⏐ 4 misconceptions about Deep Tech

  • 1. Deep Tech start-ups have higher risks than traditional start-ups

    Deep Tech is gradually de-risked over time resulting in similar failure and graduation rate as other tech startups.

  • 2. Deep Tech life cycles are slower and have longer exit timelines

    Start-ups' time to unicorn and time to exit is on par with other tech.

  • 3. Deep Tech start-ups cannot scale to the same degree as oher tech start-ups

    Deep Tech start-ups are more likely to scale to unicorn.

  • 4. Deep Tech start-ups have lower capital efficiency than other tech start-ups
    Deep Tech has greater capital efficiency.

C ⏐ First numbers suggest that European Deep Tech will likely generate outsize returns

VC funds investing in Deep Tech deliver an average net IRR above traditional tech funds.

Clear trend with Deep Tech-focused funds having outperformed traditional tech funds since 2003.

D ⏐ European Deep Tech is at an inflection point

European Deep Tech is increasingly gaining relevance both regionally and globally

Deep Tech has shown remarkable resilience in the overall VC tech downturn during the last 24 months

  • Globally

    European share of global Deep Tech funding has grown from 10% in 2019 to 19% in 2023, and is set to increase further.

  • Regionally

    Deep Tech funding is becoming a larger part of overall European VC tech funding, having grown from 10% of regular tech funding in 2010 to 44% in 2023.

European Deep Tech need a collective effort from all actors in the ecosystem

VCs can help bridge the funding gap and bring innovations to the market by investing in early-stage ventures that have promising technologies but lack the resources to commercialize them.

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