In a world where technology is not only a means to achieve goals but also an end in itself for transforming our reality into a fairer, healthier, and more sustainable place, a new concept emerges: Deep Tech. This term, coined by Swati Chaturvedi, co-founder and CEO of Propel(x), refers to genuine scientific discoveries or technological innovations aimed at improving the world.
The Evolution of the Entrepreneur
Innovation and creativity have been integral to human DNA since time immemorial. From the discovery of fire to the industrial revolutions, technological advances have driven progress. However, the next industrial revolution is distinguished by the profile of the entrepreneur. Beyond simply starting and consolidating their business, the new entrepreneur has a more holistic vision, integrating social and environmental values at the core of innovation.
Definition and Application of Deep Tech
Deep Tech is a new category of tech startups distinguished by their drive to solve major problems, regardless of the field or sector. Swati Chaturvedi mentions examples like using data analysis to help farmers increase crop yields or designing medical devices to fight cancer. These technologies are disruptive, capable of creating new markets or transforming existing ones, always focused on megatrends like climate change, resource scarcity, and an aging population.
Deep Tech shares three common characteristics:
- High Impact: Capable of transforming entire industries.
- Maturity Time: Requires longer timeframes to reach maturity.
- Capital Intensive: Needs significant investment.
Impact on Startups and Investors
Technology defines launch timelines. For instance, biotech startups take an average of four years to become fully operational, while blockchain startups do so in 2.4 years. Funding also varies: developing biotech prototypes costs an average of $1.3 million, while blockchain prototypes average $200,000. This allows us to observe investment by sector within the tech industry.
Despite uncertainties, investment in Deep Tech continues to grow. Funding for Deep Tech increased from $9.85 billion in 2015 to $17.88 billion in 2018, a 22% rise. Investors are willing to take risks with their capital in search of the next big technological innovation.
The Appeal of Deep Tech
Deep Tech promises solutions across various domains, using techniques like artificial intelligence, big data, and deep learning. These are not traditional digital companies like Meta or Spotify, but rather significant scientific or technological advances that respond to global challenges.
Deep Tech represents a new era of innovation, where technology is not just a means but also an end in itself to improve the world. With a holistic vision and a focus on megatrends, these technologies are transforming industries and creating new business opportunities. Although they require time and capital, the potential for impact and return is substantial, attracting investors and companies eager to lead the next industrial revolution.
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