It is almost impossible to imagine your life without technology. Deep tech is increasingly popular and being adopted by multiple industries. The deep tech industry refers to technologies that depend on the fundamental science designed based on robotics, biotechnology, AI & additional advanced technologies. Before investing in this field, it is necessary to scale the potential of deep tech & how it can make a positive impact.

Deep tech industry and its popularity in European countries

European deep tech is becoming more prominent globally & locally. The share of deep tech funding for European ventures has doubled and is rising. The rapid growth is driven by the combination of technological breakthroughs & societal demands & economic resilience. The European investors have lots of opportunities and robust foundational capabilities in manufacturing, research & development.

78.33% of Deep Tech scaleups are valued at more than €50 million, which is comparable to other categories of scaleups. Supporting Deep Tech in a fast-changing technological environment necessitates not just the early university creation of solutions but also their continued growth and scaling.

As Deep Tech projects develop, they spur economic expansion and provide solutions to some of the most complex problems facing humanity. Venture capitalists must use their conventional skills to invest in and grow start-ups. However, they need to develop other skills if they want to succeed.

Strategies by expert venture capitalists for the Deep Tech sector

• Clarify the rationale & constraints

The deep tech industry offers impressive opportunities, and that’s why people are investing in the sector. However, to be successful in the industry, beginners should be clear about the reasons for investing in this landscape. You should have a clear analysis of the market and its leaders. You can refer to the interviews of investors investing in this sector, such as Rajat Khare's biography. Having a clear idea about the industry evaluates the potential of deep tech and further opportunities.

• Have a brief knowledge & become an expert

The Deep tech founders are sometimes frustrated with the lack of detailed expertise that generalist VCs bring to investment & development. VCs mostly rely on knowledge & expertise, and this is why you must gather all the knowledge from the experts and the internet.

The knowledge has no bars & restrictions, so collect as much information about this sector as possible to become an expert. Even companies also love to invest in experts who have the leadership to offer the baseline of knowledge. Have some knowledge about relevant technology like biotechnology, quantum computing, and advanced knowledge.

To refine your skills, you must learn about go-to-market strategies and align them with product pricing as per market expectations. Following these practices ensures that you have a specific level of expertise in the operational plan and scaling.

• Design orchestration capability

Due to the distinct characteristics of deep tech businesses, such as high initial investment costs and intricate technical difficulties, venture capitalists must rely more on their capacity to coordinate a network of specific partners and allies than on their own skills.

This includes, for instance, forming close ties and possibly cross-functional teams with technical universities; working with spin-off VCs or early- and middle-stage VCs to identify possible spin-offs; co-investing with deep tech funds; and setting up a partnership office to set up and manage alliances and relationships with ecosystem partners.

• Set a stronger partnership between the deep tech start-ups & corporations

As the popularity of the deep tech industry rises, corporations must rethink the approaches to engage with deep tech start-ups. Successful partnerships must not only focus on the technologies but emphasize holistic engagements through acquisitions, investments, and collaborations in the deep tech sectors.

For Europe, the advancement in Deep Tech isn’t about the opportunities; it strengthens competitiveness. By setting up the ecosystem, from VCs to corporations & from universities to governments, Europe has the opportunity to lead the industry.

DeepTech initiatives have the potential to change the world, from utilizing the potential of quantum computing to utilizing precision medicine to revolutionize healthcare. The potential benefits for those who strive to walk into the unknown are endless despite the fact that this route is not without hazards. The Deep Tech industry in Europe is seeing a boom in ground-breaking inventions.

This upsurge is the result of visionary investors who are dedicated to helping businesses that are taking on significant obstacles and who see the industry's revolutionary potential. The biggest examples of investors who invest in the Deep tech sectors are the European Innovation Council, Octopus Ventures, Verve Ventures, IQ Capital, and APEX ventures.

In conventional technological fields, the founder & VC collaboration is frequently adequate. However, VCs may not be well-versed in the complexities of deep tech, and they are usually inadequate to supply the substantial initial capital needed. If you want to enhance your skills & get motivated, check out RajatKhare's Pinterest.