Deep tech is a rapidly growing field that encompasses a wide range of cutting-edge technologies that are based on scientific or engineering breakthroughs. We are seeing the term being used more frequently in the media and especially articles on future trends. In addition, there are now an increasing number of “Deep Tech” investment funds available for the discerning investor to consider.
However, many people may not fully understand what deep tech is and why it’s so important. In this article, we’ll take a closer look at what deep tech is and why it’s generating so much buzz.
What is Deep Tech?
Deep tech refers to technology that is based on scientific or engineering breakthroughs and is typically considered “cutting-edge.” Examples of deep tech include artificial intelligence, robotics, biotechnology, and quantum computing. These technologies often require significant investment in terms of time, money, and resources, but they also have the potential to create a major impact and change the way we live and work. According to the World Economic Forum, deep tech includes technologies such as AI, blockchain, quantum computing, biotechnology, and autonomous systems.
Why is Everyone Talking About Deep Tech?
There are a few reasons why deep tech is gaining so much attention. One reason is the influx of investment in the field. Investment into deep tech quadrupled from $15bn in 20016 to $60bn in 2020. Additionally, we are starting to see tangible results from this investment, with major breakthroughs in areas such as robotics and quantum computing. For example, Google’s quantum computer, Sycamore, was able to perform a calculation in 200 seconds that would have taken the world’s most powerful supercomputer, Summit, 10,000 years to perform.
Another reason deep tech is generating so much buzz is the growing realisation that it will play a crucial role in solving some of the world’s biggest problems, such as climate change and dwindling resources. Deep tech has the potential to help us find sustainable solutions to these challenges, which is why it is becoming increasingly important in the eyes of investors, entrepreneurs, and the general public. For example, biotechnology can help to create new, sustainable ways to produce food, while AI can help us to better understand and predict weather patterns, which can help us to mitigate the effects of climate change.
Why Should You Care About Deep Tech?
So why should you care about deep tech? One reason is that it has the potential to make our lives easier and more enjoyable. With the help of deep tech, we can automate tasks such as driving and grocery shopping, freeing up more time for us to spend on the things we enjoy. Additionally, deep tech has the potential to make the impossible possible, from planning a trip to Mars to curing cancer. For example, AI-powered cancer detection tools are helping to improve the accuracy of cancer diagnoses and treatment plans.
Another reason to care about deep tech is its potential to make us more sustainable as a species. With the help of deep tech, we can find new ways to produce energy and food without damaging the environment. This is crucial for our long-term survival on this planet. For example, renewable energy technologies such as solar and wind power are becoming increasingly cost-competitive with fossil fuels and are helping to reduce our dependence on fossil fuels.
Investing in Deep Tech
For high net worth investors, there are opportunities to gain exposure to deep tech through specialist venture funds. These funds focus on investing in deep tech startups and have the experience and resources to identify and support the most promising companies in the field. Investing in these funds can provide investors with access to cutting-edge technology and the potential for high returns. Returns for deep tech venture funds are typically 50% higher than those of more generalist VC funds.
Deep tech is an exciting field that has the potential to change our lives in ways we can’t even imagine. From improving our daily lives to solving some of the world’s biggest problems, deep tech is sure to play an important role in shaping our future. For investors, deep tech offers the opportunity to gain exposure to cutting-edge technology and potentially high returns.
As the field continues to grow and evolve, it’s important to stay informed and keep an eye on the latest developments in deep tech. With the increasing investment in the field, we can expect to see more breakthroughs and advancements in deep tech, which will help to create new opportunities for innovation, economic growth, and improving the quality of life for people around the world.