Deep Tech Decoded:
A Strategic Investor’s Guide
Deep tech is set to surpass SaaS as the next major investment opportunity for VCs, GPs, LPs, and Business Angels. Yet traditional frameworks fail to capture its unique aspects like timing, capital intensity, and risk profile. Creating a winning portfolio for superior returns in deep tech will demand a specific investment approach.
Get exclusive insights from Hello Tomorrow and Deepbright Ventures’ detailed analysis of 860+ most promising deep tech startups.
SOME OF THE KEY TAKEAWAYS:
- Exceptional Returns: Selected startups achieve a 19.6%-22.8% net IRR (vs Cambridge VC benchmarks of 15.2%-17.1%).
- Hardware vs Software: Hardware-focused startups significantly outperform their software-based counterparts.
- Time-to-Market Matters: A longer reported time to market associated with better performance.
"Deep tech is what will drive the future. The various market segments gathered under this terminology are critical in terms of national sovereignty, with AI, Spacetech, and Defencetech leading the wave of innovation — given the impact they can have on the daily life of each and every citizen. Combining this with higher returns should make deep tech a natural area of interest for investors."
Authors
Arnaud de la Tour
CEO and co-founder of Hello Tomorrow and Deepbright Ventures
Riadh Shaiek
Co-founder and Managing Partner of Deepbright Ventures
Marsad Siddique
Junior VC Analyst at Deepbright Ventures
Selma Elouardi
Investor Relations Manager at Hello Tomorrow
Orlando Ramirez
Global Challenge and Deep Tech Pioneer specialist at Hello Tomorrow
