What is Deep Tech and What it Means for Startups?

If you're reading this post, you may be wondering: What is deep tech, and why are startups talking about it?

No need to worry, we’re here to explain.

Deep tech startups are different from regular tech startups. 

While traditional tech focuses on improving user experience, deep tech builds from the ground up, turning scientific discoveries into real solutions.

They want to change entire industries, not just make small adjustments.

At Konvoy, we believe deep tech is not only changing the future of gaming or consumer platforms, but also shaping the technologies that will drive global progress in the next decade.

In this post, we will explain what deep tech is and what its meaning is for startups.

Deep Tech Explained 

Deep Tech involves startups that use scientific discoveries and advanced engineering to create new technologies. 

These technologies may take years to develop, but can have a major impact in the long run.

You can find Deep Tech in areas like:

• Artificial Intelligence and machine learning
• Quantum computing
• Robotics and automation
• Nanotechnology
• Space and energy technologies
• Biotechnology
  

That’s why many Deep Tech startups come from universities or research labs instead of following the typical Silicon Valley garage startup and venture capital raising model.

Deep Tech vs Shallow Tech

Deep tech is quite different from shallow tech. 

Shallow tech means simple updates that help a business move from analog to digital. 

These changes are easy for competitors to copy and usually don’t disrupt the market much. 

For example, changing a regular laundry service to an on-demand website or turning a local gym into a virtual fitness platform shows shallow tech.

Even though Airbnb and DoorDash transformed the hospitality and food delivery industries, they are not deep tech. They used existing business models and widely available technologies.

Deep tech companies, on the other hand, create innovative technologies to solve difficult real-world problems. 

They often use advanced technologies like AI, blockchain, computer imaging, and virtual reality. 

What Sets Deep Tech Apart?

Deep tech startups focus on advanced areas like AI, life sciences, and agriculture. 

These companies usually have experts advising them and protect their ideas with patents or other intellectual property.

That's why deep tech startups require significant funding and time to grow because their research needs are high, and it takes a long time to bring their products to market. 

However, when they do launch, their innovations are difficult to copy and can change entire industries. 

For example, fintech companies using blockchain technology have changed traditional banking by eliminating inefficiencies and lowering costs.

Why Deep Tech Matters for Startups

Deep tech startups don’t just build tools; they solve crucial problems.

They create sustainable energy, improve medical diagnostics, and develop advanced gaming systems. 

So, they:

• Take longer to develop, but the ideas are more secure and valuable.
• Face complex markets with fewer direct competitors.
• Need scientific knowledge, which can create barriers for new entrants.

However, even if these companies may take longer to succeed, they can create entirely new industries when they do.

Deep Tech and Venture Capital

Venture capital firms and angel investors see deep tech as an important focus more than ever. 

Here are a few reasons why:

• High barriers to entry: Intellectual property and patents protect innovations.
• Massive impact potential: Deep tech can transform entire industries or create new ones.
• Scalable applications: These technologies can expand across various sectors.

We support founders who have both vision and technical skills. Our experience shows that they can turn ambitious research into successful businesses.

However, Deep Tech companies face more challenges than regular startups:

• It can take years to find the right market for their products.
• Advanced research and equipment can be expensive.
• These companies need teams with both technical and business skills, leading to a talent gap.
• Following regulations is especially important in healthcare, aerospace, and AI ethics.

Despite these challenges, they can also become competitive advantages. 

This makes successful deep tech startups hard to replicate or replace from our POV.

How Venture Capital Supports Deep Tech Startups

Deep tech startups need investors who understand the intersection of science and business.

It takes a long time to get capital and to sell their products.

Here are the stages of venture capital and the steps they go through to get funding:

• Pre-Seed: This is the research phase where we check if a scientific idea is valid.  
• Seed: They build the prototype and conduct some early tests.  
• Series A: At this stage, they prove that the technology works and gain initial interest.  
• Series B: Here, they work on scaling the product and preparing it for mass production.  
• Series C+: Their focus shifts to expanding the market and deploying the product on an industrial scale.

We strongly recommend exploring our related articles to learn how Konvoy views venture capital and frontier markets: 

• How to Start a Venture Capital Firm  
• Venture Capital vs. Hedge Fund  
• How to Get Venture Capital Funding 

FAQS

1. What is deep tech?

Deep Tech refers to startups that are based on groundbreaking science and advanced engineering, rather than just simple software or consumer apps. 

2. What is deep tech venture capital?

Deep tech venture capital funds companies that apply scientific research, advanced engineering, and innovative computing to real-world problems. 

Investors in this area give long-term support to startups that solve complex challenges in fields like quantum computing, robotics, artificial intelligence, nanotechnology, and space technology.

3. How is raising capital for deep tech startups different from regular startups?

Raising money for deep tech startups takes longer and requires more technical proof than for regular software companies. 

Investors want to see research results, patents, and evidence of market potential before they invest in growth.

4. Where can you find a deep tech venture capital firm?

To find a venture capital firm that invests in deep technology, look for investors who focus on innovative technologies, hard science startups, and advanced engineering projects.

One such investor is Konvoy.  Be sure to visit our investment thesis and portfolio.

In Summary

So, what is deep tech?

In short, deep tech is the future. 

It combines science and entrepreneurship, allowing founders to change entire industries. 

For startups, this is a chance to create something truly transformative. 

For investors, it’s an opportunity to support technologies that change our reality.

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