Why investing in deep tech will save the world.
Deep tech innovators are taking on issues related to health, poverty, inequality, and planetary imbalances, including climate change. In the next decade, deep tech can lead us into a new world, as long as we correctly invest in its development.
Deep tech is an area of science and technology working to solve some of the world's most complex problems. From figuring out ways to fight disease to innovations in transportation and artificial intelligence, to making energy more sustainable and data more equitably available, deep tech impacts nearly every aspect of the way we live our lives.
Recent years have given way to exciting breakthroughs in deep tech. Think about technologies like your smartphone or electric cars that simply didn't exist two decades ago. These are examples of how deep tech innovations enhanced our regular routines were enhanced by.
The impact of deep tech on humanity and our planetary life support system is far-reaching. It can continue to change the world and possibly, even save it.
But what makes it deep tech?
Deep tech is disruptive scientific advances that increasingly involve blending of traditional sciences such as physics, chemistry, mathematics, biology and medicine.
Whether in life sciences or semiconductors, Bridgewest Ventures likes to focus on deep tech developments that lead human activities to progress toward more efficient and sustainable outcomes.
"I define deep tech as an implementation of technology towards human processes and requirements," states Bridgewest Venture's Managing Partner, Saum Vahdat, "It exponentially impacts and improves the speed, efficiency, resource requirements, and end results of those needs."
"Deep tech pushes the boundaries of the tools we use to the point where we can replace the most expensive resource — people. When more tasks or activities are automated, you can take people out of the equation, freeing up their time for further innovation or more important activities."
What problems can deep tech solve, and how is it solving them?
We touched on some of the areas deep tech can help above, but research from Boston Consulting Group (BCG) and Hello Tomorrow puts it into a humanitarian context.
To better understand the impact of deep tech on our world, BCG and Hello Tomorrow looked at 1,646 deep tech startups and mapped their focuses against the established United Nations Sustainable Development Goals (ref 1). The UN's 17 goals are a blueprint for a more sustainable, equitable world (ref 2). They cover a range of topics, including poverty, hunger, inequality, and climate action. The aim is to achieve all the goals by 2030, and perhaps deep tech can help play a role.
Based on BCG and Hello Tomorrow's research, many startups actually contribute to more than one of the 17 goals, and every goal was relevant to at least 5% of the companies.
51% of the startups focus on technology helping Goal 3: Good Health and Well Being. This covers advancements in medicine, whether developing a vaccine or looking for treatments to cure cancer. 50% contribute to Goal 9: Industries, Innovation, and Infrastructure. This is less surprising; deep tech is often a very novel IP that, in some cases, might establish an industry based on its creation. R&D is a major target for this goal, so it makes sense that deep tech is a significant contributor.
20 - 30% of the startups investigated aligned with Goal 11: Sustainable Cities and Communities, Goal 12: Responsible Consumption or Production, or Goal 13: Climate Action.
The UN outlines how all 17 of their Sustainable Development Goals are interconnected. As deep tech develops in one area, it may allow for additional innovation in another.
Bridgewest Group, the parent company of Bridgewest Ventures, has already helped multiple deep tech companies bring their technology to market.
One of their companies, Endura, uses semiconductor technology for power, audio, and AI. The company works to reduce the size and resource requirements of any electronic device, achieving more battery life, better performance, and room for additional features.
Semiconductor technology is a deep tech tool that can make IoT and AI advancements possible. Advancements could lead to efficiencies in the biotech, agriculture, and health sectors and could be what is needed to achieve one or multiple of the UN's Sustainable Development Goals.
The rise of the deep tech ecosystem
More countries and companies are starting to understand how our global economy could be driven and dependent on R&D. Between 2015 - 2018, private investment into deep tech rose 20% year-on-year, to reach almost $18 billion (Ref 1).
For many founders in deep tech, the ability to solve big problems is part of the attraction. Providing the founders' pathways to innovate is up to the public and private sector if we want world-changing results. Furthermore, a thriving innovation ecosystem will be a key part of the New Zealand economy as we reduce our dependence on tourism and pastoral exports.
For Bridgewest Ventures, this means setting up an incubator that supports startups in commercialising their IP within New Zealand and supplying them a network to bring their technology to the global stage.
Vahdat says participating in an incubator can be extremely valuable for a startup and investors alike.
"You really want to let the entrepreneur focus on their R&D," he says, "and allow the incubator to take care of everything else. Startups often have trouble getting market adoption because they are seen as too risky. An incubator with global experience and presence can help bring their life-changing technology to the world."