Understanding Deep Tech and Its Importance for the Future

Deep tech is a term used to describe technologies not focused on end-user services. These include artificial intelligence, synthetic biology, nanotechnologies, blockchain, quantum computing, and robotics, to name a few. 

The primary task of this technology is to come up with innovative solutions that can solve society’s most significant issues, like climate change, food production, and chronic diseases. In deep tech companies, the specialists take a different approach to work because technologists and scientists usually collaborate to achieve a common goal. 

What else is deep tech about?

Deep tech is focused on bringing change and creating tangible societal shifts. It’s considered a game-changer, addressing constantly emerging problems and becoming a significant threat for already fragile global systems. 

Although establishing a deep tech company requires a significant amount of financial and time investment, it pays off in the long run. As soon as such businesses enter the market and prove that their approach to disruptive technologies is worth the attention, it’s tough for competitors to achieve equal success.  

Deep tech companies are the ones who have all the chances to rewrite the rules and create solutions that can make the existing products uncompetitive, breaking the old businesses and encouraging users to strive for innovations. 

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Investing in deep tech implies being ready for the challenges, but the final sum you’ll pay can be lower if you opt for outsourcing your technology development. You can check out the software development hourly rate in the world to understand what country matches your requirements best. 

The defining elements of successful deep tech ventures

The deep tech companies together create a segmental group. There are businesses that already have their household names, others have attracted public attention, and some are focused on the files that few people can describe. 

In general, rapidly advancing deep tech ventures combine multiple talents to solve problems, including scientists, engineers, and entrepreneurs. 

Since no existing technology can solve a particular issue, this group of people combines efforts and delivers a brand-new technology that has all the chances to make a breakthrough in the industry. Nevertheless, in some cases, the businesses focus on developing solutions based on the established technologies. 

Usually, prosperous deep tech ventures include the following attributes:

• They focus on solving acute problems. Deep tech organizations are problem-oriented, aiming to solve urgent matters and prevent people from losing out on the benefits of innovations offered by the industry. It helps to mitigate the effects of global problems, like climate change. Around 97% of deep tech ventures contribute to meeting at least one of the UN’s Sustainable Development Goals. 

• They combine several technologies. Deep tech companies harness the best existing or emerging technologies, advanced materials, AI, synthetic biology, and other innovations to solve the problems at hand. 96% of deep tech ventures use two or more technologies. 

• They create solutions for the physical world. The majority of industry’s ventures are shifting to digital and physical innovation rather than just digital. They focus on bits and atoms and utilize advanced technologies, such as AI and machine learning to explore physics, chemistry, and biology on a new level. 

• They have encouraged the development of a deep ecosystem. Due to the complexity and large scale of deep tech innovations, the industry requires a considerable scientific background to push its further development. The sector is the catalyzer of the emergence of new institutions that can support its advancement. Around 1,500 universities and research labs are involved in deep tech.  

Although the fraction of deep tech companies in the startup market is small, they bring an immeasurable value to society due to their work’s futuristic and practical core. Despite the inherent risks of working in deep tech, the interest of investors in the industry is increasingly growing.

Based on recent research, the amount of capital put into the industry has grown four times within five years. That being said, it had increased from $15 billion in 2016 to over $60 billion in 2020. 

What are the leading deep tech startups?

Let’s see what fields prevail in the focus of deep tech startups and what global problems they are about to solve:

Biogenera SpA

This deep tech company operates in the biotechnology pharmaceutical sector. It focuses on the research and development of new DNA-based patient-specific medicines for the treatment of serious pathologies. It has a multidisciplinary team of researchers that are focused on finding cures for pediatric tumors.  

Ribes Tech

Being a renewable and environmental company, Ribes Tech specializes in manufacturing flexible plastic foils that are able to convert sunlight into electricity. Since the photovoltaic panel is ultra-thin, it has multiple uses, like roads, handheld devices, or cars.  

Graphcore

This deep tech startup is the inventor of the Intelligence Processing Unit, which is a microprocessor that can be used for AI and machine learning. The company received investments from Microsoft, BMW, Dell, and Samsung Electronics. Graphcore has created a product that can help increase productivity in the AI apps when launched in the cloud and in the enterprises’ data centers. 

Conelum

Conelum is an internationally recognized biotechnological startup focused on the development of rapid microbiological diagnostic tests for food and drink industry companies. It has already raised €200,000 and gives unique value to companies. Conelum reduces the time required for compulsory microbiological safety tests, reducing risks of recalls and minimizing the chances of possible outbreaks. 

Eventech

Having a solid scientific background, Eventech came up with a unique event timing technology for extremely accurate measurements (2-3 picoseconds). The company’s primary goal is to facilitate the development of the Satellite Laser Ranging market. Besides, it aims to develop new apps focused on even timing technology and products. 

Koatum

The company offers customizable bioactive solutions for dental and orthopedic implants. It prevents inflammation, helping implants integrate faster due to multi-layer coatings. Koatum enables people with different problems and needs to avoid dealing with new challenges. It has raised 500 thousand euros of investment so far.  

Conclusion

A rising number of European venture capital investments is focused on deep channel technologies, including AI, blockchain, and robotics. The companies that implement their pioneering vision to leverage the industry’s potential to address significant problems, like climate change. However, there’s still enough room for development in this area because the breadth of issues that can be addressed with deep tech remains considerable.