What is a Deep Tech Startup? Definition & Examples
A deep tech startup is a newly established business founded on breakthrough science or engineering. Swati Chaturvedi, CEO and founder of Propel(x), defined the term “deep technology” to identify new businesses on the cusp of momentous scientific and technological breakthroughs that will define the next century. “Deep” denotes the expansive potential of technological innovations to impact the world we live in. Comparable to deep learning and deep theorem, deep technology requires thorough testing to fully understand the humanitarian and business implications not obviously related to the underlying scientific breakthrough.
Deep technology companies have revolutionary technical solutions that redefine or create new markets. Medical devices that help save lives, big data models used to solve world hunger, and clean energy solutions aimed at stemming global warming are all examples of deep technology. Deep technology is NOT built on business model innovation or offline to online business model transition using existing technology. Uber, for instance, would not qualify as a deep technology company because it was founded on a business innovation; the “sharing economy.”
Deep technology startups often share the following qualities:
• Developed from years of research and lab testing
• Ownership of intellectual property
• Technical board of advisors in addition to the board of business advisors
Deep technology startups have the ability to change the world and generate incredible economic value for early investors. These new businesses propose revolutionary solutions to global problems with the disruptive potential to create entirely new markets. Angel investors and venture capital funds alike seek investment opportunities in deep technology startups because they often have highly valuable intellectual property which may yield monumental returns. Once established, deep technology businesses can develop barriers to entry for competitors that allow for the building of a valuable enterprise. Investors with vision can create value for the world and profit themselves by investing early in these companies.
To learn more about investment opportunities in deep technology, click here.