Deep tech refers to companies that use revolutionary scientific research to address complex, systemic challenges. Those companies deal with fields like AI, robotics, quantum computing, biotechnology, advanced materials, and energy. Deep tech innovations are often high-risk but have the potential to change the world in a way we can’t even imagine. 

Unlike tech companies with a lean mindset and quick fixes, deep tech requires substantial time, capital, and expertise to develop. Are there already success stories in deep tech? How can you find deep tech investment opportunities? And should you invest in deep tech? Let’s take a look. 

Deep tech examples and success stories

Even though developing deep tech takes time, money, and patience, we have already seen how such innovations can transform industries and society. Here are some key research fields and success stories of deep tech: 

  • Biotechnology and healthcare – gene-editing technologies such as CRISPR-Cas9 have shown potential in various fields from agriculture to genetic diseases and drug development. Companies like Moderna and BioNTech are developing mRNA technology that was used for COVID-19 vaccines. 
  • Artificial intelligence (AI) – language models like OpenAI's ChatGPT are widely used, from content creation to coding assistance. Models such as the AlphaFold AI system can accurately predict protein folding structures, showing significant potential in drug discovery and understanding diseases.
  • Clean energy and sustainability – companies like Carbon Engineering work on air capture technology, removing CO₂ from the atmosphere. Let's also not forget Tesla with its revolutionary electric vehicle design and battery technology that forever changed the industry.
  • Quantum computing – platforms like IBM Quantum and Google Sycamore demonstrate how quantum systems can solve specific problems exponentially faster than classical computers. 
  • Space exploration – for example, SpaceX has dramatically reduced the cost of space exploration through its reusable rocket technology. 
  • Advanced materials – companies like Graphene and Fibenol are developing a new generation of materials. Graphene’s ultra-thin, ultra-strong material can revolutionize electronics, energy storage, and medical devices. Fibenol creates biomaterials from hardwood chips, offering a sustainable alternative to fossil-based materials. 

7 places to find deep tech investment opportunities

Finding and accessing deep tech investment opportunities requires knowledge, networking, and research. Where can you find promising deep-tech ventures? Here are key places to keep an eye on. 

  1. University and scientific networks – many deep tech startups emerge from universities (e.g., MIT, Stanford, ETH Zurich). Try exploring university tech transfer offices and research commercialization programs. Follow and engage with professors, researchers, or alumni from leading institutions to identify promising technologies.
  2. Deep tech-focused investment platforms and networks – seek out platforms and angel networks specializing in high-tech and campus-born startups, e.g. International Collegiate Angels Network (US), Wharton Alumni Angels (US), Science & Technology Angels Network (Armenia), and many more. 
  3. Specialized deep tech incubators – look into renowned incubators like Singularity University, Fraunhofer Institutes, or Silicon Catalyst, which host deep tech projects with high growth potential, or innovation labs run by companies like Google, Amazon, or Microsoft. 
  4. Deep tech VCs – some venture capital funds like Lux Capital, Data Collective, or SOSV specialize in deep tech. Also, you can find investment syndicates led by experienced deep tech investors on platforms like AngelList.
  5. Industry conferences and events – attend industry events to network with founders and other investors, or discover emerging technologies and startups.
  6. Government and innovation agencies – public-private partnerships and designated government programs often co-fund deep tech projects.
  7. Secondary markets and funds – consider investing in later-stage startups by purchasing shares from existing shareholders.

Pros and cons of investing in deep tech

Pros: 

  • The potential to do good – first and foremost, by supporting foundational breakthroughs that combine financial returns with meaningful societal and environmental impact. Investing in deep tech has immense potential to help solve global challenges like climate change, healthcare access, and food security. 
  • High growth potential – revolutionizing industries (e.g., AI, biotech, clean energy) can yield substantial returns.
  • Diversification – investing in emerging technologies and markets is a good way to diversify your portfolio. 

Cons:

  • High risk – deep tech has long development timelines and high research and development costs, with no guarantee of success. 
  • Regulatory challenges – groundbreaking technologies can face heavy regulation and ethical dilemmas.
  • Slow market adoption – new technologies can take time to gain traction. 
  • Illiquidity – early-stage investments are often illiquid, but the higher the risk, the harder they are to exit. 

3 questions to ask yourself before investing in deep tech 

1. Can I handle the risk? 

Deep tech ventures are ambitious, and success is never guaranteed. Even with a great idea and great tech, funding shortages can derail a project. You really need to be comfortable with the possibility of losing your investment. 

Avoid putting all your money into one company or sector. Spread your investments across multiple startups and industries, or consider public companies with a deep tech focus.

2. Do I have the time? 

Capital invested in deep tech can be locked up for a long time, with a holding period of 10 years or more. Ask yourself if you’re okay with that commitment. Look for signs of progress, such as proof of concept, early customer traction, or strategic partnerships. 

3. Do I understand it enough? 

Due diligence is critical in deep tech investing, but evaluating cutting-edge science and engineering is hard. If you’re not an expert in the field, collaborate with scientists, engineers, or deep tech advisors. Their insights can help you make more informed investment decisions. Partnering with specialists reduces the risk of misunderstanding the technology.

Evaluate the team’s expertise; strong technical and business skills are a must. Check intellectual property rights, market potential, scalability of the product, and the company’s access to follow-on investments. 

Remember, deep tech evolves quickly. Keep track of breakthroughs, industry trends, and government policies. For example, funding initiatives for clean energy or AI can significantly impact opportunities in the space. Staying informed helps you detect emerging risks and opportunities.

Should you invest in deep tech?

If you’re not sure what deep tech is, the verdict is clear – don’t invest. You should never invest in things you don’t understand. While not for everyone, investing in deep tech can still be highly rewarding.

If you’re an experienced mission-driven investor with a knack for tech and want to make a positive societal impact, deep tech might be right for you. However, risk tolerance is a must. It can take years or even decades before your investments bear any fruit. 

If you don’t have time or expertise to evaluate deep tech ventures, consider partnering with professionals or exploring less risky alternatives.