DeepTech investments

DeepTech investments

DeepTech companies are enterprises or projects that develop advanced and highly innovative technologies based on scientific discoveries or engineering breakthroughs. These technologies have significant potential to transform entire industries or create new ones. They aim to solve very complex problems, which can generate a positive impact on society as a whole.

The main characteristics of DeepTech companies are as follows:

• They address society’s most complex challenges. The most common fields of action for DeepTech include:

• • Artificial Intelligence
  • Biotechnology
  • Robotics
  • Eco-efficiency in the climate sector

• The development cycle of DeepTech innovations tends to be longer and requires greater capital investment.

The development of DeepTech projects can span years, even decades. This is due to the complex nature of the technology and the continuous testing and certification processes that are necessary.

Considerable funding is required from the early stages, and several years may pass in the research phase before reaching a marketable product.

• Investments in startups are often considered high-risk, as only one in ten typically survives. This situation is even less favorable when it comes to DeepTech, as these ventures are even riskier and more unpredictable, often relying on discoveries and technical advancements whose success is uncertain.

However, if the project is successfully developed, the benefits can be much more substantial than those offered by a routine startup.

• The solutions developed by DeepTech companies have the potential to radically change how industries operate, solve complex global problems, or create entirely new categories of products and services.

Therefore, this can be even more attractive to investors, as they not only stand to gain substantial profits but also have the opportunity to contribute to significant societal advancements.

Even though it is extremely challenging for a DeepTech startup to achieve its goal, there are many successful examples that can serve as inspiration.

Toregem Biopharma is a Japanese startup that embodies all the aforementioned characteristics of DeepTech. One of the biggest dental problems is tooth loss, and this company has developed a drug that stimulates the growth of new teeth once the old ones have fallen out, which would completely revolutionize the entire dental implant industry.

The company expects to commercialize the drug by 2030. If it indeed starts selling in 2030, more than 15 years will have passed from its founding until it begins to generate real returns.

There are also examples of successful Spanish DeepTech companies.

The Spanish startup, Bioo, recently closed another round of financing worth one and a half million euros. This company aims to generate electricity from nature, having patented biological switches, a technology that allows plants to be used as triggers for activating light or sound.

Using this technology, the company has created the first plant-based piano, which is installed at the Ibiza Botánico Biotecnológico and uses plants instead of keys to activate both sound and light.

Bioo will launch its first consumer product in March, entirely developed in Europe: Bioolux, a pioneering lamp in its sector that uses plants as biological switches.

Bioo has obtained much of its funding through European funds, setting an example for other startups, as they often receive substantial government support when seeking solutions to deeply rooted societal problems.

As has been the trend in recent years, the creation and financing of DeepTech companies are expected to continue rising.

Investing in DeepTech means betting on advanced, long-term technologies with transformative potential, but it also involves high risks due to their complexity and prolonged development. It is crucial to be patient, diversify investments, and have technical knowledge or expert advisors to evaluate projects.