Deep tech is risky, but we’re up to the challenge.

Deep tech is all about big ideas, and with big ideas comes big risk. 

In celebration of Techweek 2020, our very own GM John Robson represented Bridgewest Ventures in a panel discussion with fellow Callaghan Innovation incubator partners.

During the conversation, Mitali Purohit, Senior Technology Incubator Specialist at Callaghan Innovation, named risk as one of the biggest challenges encountered when commercialising deep tech ideas. The advancement of deep tech takes expertise and time to see a pay-off, sometimes limiting the appetite for investment. 

Risky opportunities and few domain experts to take ideas from the lab to market is what motivated Callaghan Innovation to establish their Technology Incubator Programme in New Zealand. After running a pilot from 2014 - 2019, Callaghan has reestablished the programme for 2020. They committed to funding deep tech startups with $160 million over the next eight years.

By applying, founders could receive a $750,000 repayable grant from Callaghan Innovation and up to a $250,000 investment from an approved incubator. 

However, the programme offers more than just capital to deep tech ventures. Through the incubators, participants receive accessibility to global networks, highly specialised expertise, and a supportive ecosystem that Purohit hopes can help deep tech ventures grow into viable hi-tech businesses.

According to Robson, it’s the ability to provide value beyond funding that gives the incubators confidence to back deep tech investments. When asked what participants can expect from the Bridgewest Ventures incubator, Robson responded, value. To him, ensuring the successful commercialisation of a deep tech product starts with the investor asking, “are we adding value?”

There is no one size fits all approach to commercialising a venture. At Bridgewest Ventures, we recognise the formula for success will vary for each of our investments. For some, we might provide further pathways to capital, build the right team, assist with market validation, or allow more doors to open based on our worldwide network. We come from a US-based investment company with over 20 years of experience and a $1.5 billion investment portfolio. Through the programme, we look forward to connecting with New Zealand founders, transplanting our knowledge, and creating a platform for Kiwis to bring their technology to the world. 

From the panel discussion, it’s clear that all the incubators involved in Callaghan Innovation’s 2020 programme have expertise to offer. All are onboard with taking on high risk, deep tech ventures because of the opportunity they represent. Finally, all also have the shared goal of creating a deep tech ecosystem that puts New Zealand technological advancements on the map.