Deep tech: Difference between revisions
Citation bot (talk | contribs) Alter: template type. Add: date. | Use this bot. Report bugs. | Suggested by Abductive | Category:Types of business entity | #UCB_Category 80/162 |
Tag: Reverted |
||
(37 intermediate revisions by 23 users not shown) | |||
Line 1: | Line 1: | ||
{{short description|Classification of a startup company}} |
{{short description|Classification of a startup company}} |
||
'''Deep technology''' ('''deep tech''') or '''hard tech''' is a classification of organization, or more typically [[Startup Company|startup company]], with the expressed objective of providing technology solutions based on substantial scientific or engineering challenges.<ref>{{Cite web|url=https://www.techworks.org.uk/about/what-is-deep-tech|title=What is Deep Tech?|last=mtc|website=TechWorks|language=en|access-date=2019-01-12}}</ref> They present challenges requiring lengthy [[research and development]], and large capital investment before successful commercialization. Their primary risk is technical risk, while [[market risk]] is often significantly lower due to the clear potential value of the solution to society.<ref>{{Cite web|url=https://www.bcg.com/publications/2021/overcoming-challenges-investing-in-digital-technology|title=Challenges of investing into deep tech|website=BCG|date=6 May 2021 |language=en|access-date=2021-05-20}}</ref> The underlying scientific or engineering problems being solved by deep tech and hard tech companies generate valuable [[intellectual property]] and are hard to reproduce.<ref name=bcg-2 /><ref name="shallow">{{Cite web|url=https://techcrunch.com/2018/06/27/iq-capital-is-raising-125m-to-invest-in-deep-tech-startups-in-the-uk/|title=IQ Capital is raising £125M to invest in deep tech startups in the UK|website=TechCrunch|date=27 June 2018 |language=en-US|access-date=2019-01-12}}</ref><ref>{{Cite web|url=https://www.bbva.com/en/what-is-deep-tech/|title=What is 'deep tech'?|last=BBVA|date=2017-11-28|website=NEWS BBVA|language=en|access-date=2019-01-12}}</ref><ref>{{cite web |url=https://www.dw.com/en/deep-tech-startups-next-wave-of-global-disruptors/a-48727620 |title=Deep Tech startups: Next wave of global disruptors? |author=Benjamin Bathke |date=May 14, 2019 |publisher=Deutsche Welle |access-date=September 13, 2019}}</ref> |
'''Deep technology''' (also '''deep tech''' or '''DeepTech''') or '''hard tech''' is a classification of organization, or more typically [[Startup Company|startup company]], with the expressed objective of providing technology solutions based on substantial scientific or engineering challenges.<ref>{{Cite web|url=https://www.techworks.org.uk/about/what-is-deep-tech|title=What is Deep Tech?|last=mtc|website=TechWorks|language=en|access-date=2019-01-12}}</ref> They present challenges requiring lengthy [[research and development]], and large capital investment before successful commercialization. Their primary risk is technical risk, while [[market risk]] is often significantly lower due to the clear potential value of the solution to society.<ref>{{Cite web|url=https://www.bcg.com/publications/2021/overcoming-challenges-investing-in-digital-technology|title=Challenges of investing into deep tech|website=BCG|date=6 May 2021 |language=en|access-date=2021-05-20}}</ref> The underlying scientific or engineering problems being solved by deep tech and hard tech companies generate valuable [[intellectual property]] and are hard to reproduce.<ref name=bcg-2 /><ref name="shallow">{{Cite web|url=https://techcrunch.com/2018/06/27/iq-capital-is-raising-125m-to-invest-in-deep-tech-startups-in-the-uk/|title=IQ Capital is raising £125M to invest in deep tech startups in the UK|website=TechCrunch|date=27 June 2018 |language=en-US|access-date=2019-01-12}}</ref><ref>{{Cite web|url=https://www.bbva.com/en/what-is-deep-tech/|title=What is 'deep tech'?|last=BBVA|date=2017-11-28|website=NEWS BBVA|language=en|access-date=2019-01-12}}</ref><ref>{{cite web |url=https://www.dw.com/en/deep-tech-startups-next-wave-of-global-disruptors/a-48727620 |title=Deep Tech startups: Next wave of global disruptors? |author=Benjamin Bathke |date=May 14, 2019 |publisher=Deutsche Welle |access-date=September 13, 2019}}</ref> |
||
== Definition == |
== Definition == |
||
The term deep tech has been present for decades,<ref>{{cite book |last=Storms, Lutz |first=C. Gilbert, Jean A. |date=1998 |title=The Practice of Technical and Scientific Communication |url=https:// |
The term "deep tech" has been present for decades,<ref>{{cite book |last=Storms, Lutz |first=C. Gilbert, Jean A. |date=1998 |title=The Practice of Technical and Scientific Communication |url=https://books.google.com/books?id=9R8Z1MCnCOgC&dq=%22deep+tech%22+science&pg=PA30 |publisher=Ablex Publishing Corporation |page=30 |isbn=9781567503623}}</ref> representing R&D divisions at major defense and telecommunications corporations such as [[Raytheon Technologies]], Lockheed Martin's [[Skunk Works]], and [[Bell Labs]], to the more modern definition which increasingly includes companies found in the [[venture capital]] ecosystem or awardees of the [[Small Business Innovation Research]] (SBIR) program, a U.S. government program, coordinated by the [[Small Business Administration]], that provides $2.5 Billion annually to small, U.S.-owned companies who compete for funding to develop and commercialize disruptive technologies. Deep tech doesn't refer to [[innovation]] itself, but to a category of [[Startup company|startup companies]] that develop new products based “on [[scientific discovery]] or meaningful engineering innovation”.<ref name="whatis1" /><ref>{{cite web |url=https://www.philonomist.com/en/kezako/deep-tech |title=What's that: Deep Tech |author=Raphaël Bonnet |date=January 28, 2019 |publisher=Philonomist. |access-date=September 13, 2019}}</ref> |
||
According to year 2019 research by the [[Boston Consulting Group]] and Hello Tomorrow, a [[France|French]] nonprofit that supports deep technology, the most prominent deep tech fields included [[Materials science|advanced materials]], |
According to year 2019 research by the [[Boston Consulting Group]] and Hello Tomorrow, a [[France|French]] nonprofit that supports deep technology, the most prominent deep tech fields included [[Materials science|advanced materials]], advanced manufacturing, [[artificial intelligence]], [[machine learning]], [[biotechnology]], [[blockchain]], [[robotics]], [[photonics]], [[aerospace]] and [[space technology]], [[electronics]] (including [[Semiconductor device fabrication|semiconductor manufacturing]]), [[cyber threat intelligence]], [[fusion power]] and [[quantum computing]]. Global [[private sector|private]] investment in those fields increased more than 20% a year from 2015, and reached almost $18 billion in 2018.<ref name="bcg-2" /> Possible fields for deep tech application include [[agriculture]], [[life sciences]], [[chemistry]], [[aerospace]] and [[green energy]].<ref name="whatis1">{{Cite web |url=https://www.startupbusiness.it/what-is-deep-tech-and-which-startups-are-marking-the-road-not-uber/96448/ |title=What is Deep Tech and which startups are marking the road (not Uber) |date=2018-04-20 |website=Startup Business |access-date=2019-01-12}}</ref> |
||
In business context, deep tech has three key attributes: potential for impact, a long time to reach market-ready maturity, and substantial requirement for capital.<ref name=bcg-2 /> |
In business context, deep tech has three key attributes: potential for impact, a long time to reach market-ready maturity, and substantial requirement for capital.<ref name=bcg-2 /> |
||
* Deep tech innovations are often radical and may create new markets or [[Disruptive innovation|disrupt]] existing ones. Deep tech companies often address big societal and environmental challenges and have potential to impact [[everyday life]]. [[Integrated circuit|Silicon chips]] are an example of innovation that enabled calculation at previously unimaginable speed and scale. |
* Deep tech innovations are often radical and may create new markets or [[Disruptive innovation|disrupt]] existing ones. Deep tech companies often address big societal and environmental challenges and have potential to impact [[everyday life]]. [[Integrated circuit|Silicon chips]] are an example of innovation that enabled calculation at previously unimaginable speed and scale. |
||
* The time required to move from [[basic research|basic science]] to applicable technology in deep tech exceed the development time of startups based on widely available technology ("shallow tech" such as [[mobile apps]], [[websites]], and [[e-commerce]] services<ref name="whatis1" /><ref name="shallow" />). For instance, the development of technology behind [[artificial intelligence]] took decades, and now AI companies are rapidly developing in many fields. According to Hello Tomorrow, as of 2019 it took an average of four years to reach market in [[biotech]] and 2.4 years in [[blockchain]]. |
* The time required to move from [[basic research|basic science]] to applicable technology in deep tech exceed the development time of startups based on widely available technology ("shallow tech" such as [[mobile apps]], [[websites]], and [[e-commerce]] services<ref name="whatis1" /><ref name="shallow" />). For instance, the development of technology behind [[artificial intelligence]] took decades, and now AI companies are rapidly developing in many fields. According to Hello Tomorrow, as of 2019 it took an average of four years to reach market in [[biotech]] and 2.4 years in [[blockchain]]. |
||
* The demand for huge early-stage funding for [[R&D]] and prototype development and lengthy [[enterprise life cycle|life cycle]] of deep tech startups forces them to abandon the established funding progression from friends and family to [[Angel investor|angel]] and [[seed money]], [[Series A round|series A]] and subsequent rounds leading to [[trade sale]] or [[IPO]]. |
* The demand for huge early-stage funding for [[R&D]] and prototype development and lengthy [[enterprise life cycle|life cycle]] of deep tech startups forces them to abandon the established funding progression from friends and family to [[Angel investor|angel]] and [[seed money]], [[Series A round|series A]] and subsequent rounds leading to [[trade sale]] or [[IPO]]. Many companies are also funded by government and other types of non-dilutive [[Grant (money)|grants]]. |
||
== History == |
== History == |
||
Line 17: | Line 17: | ||
The funding for deep tech companies has increased over the years. According to [[Boston Consulting Group]], the total investments in deep tech companies increased from $1.7 billion to $7.9 billion from 2011 through 2016.<ref name=bcg-1>{{cite web |url=http://media-publications.bcg.com/from-tech-to-deep-tech.pdf |title=From tech to deep tech |author=Arnaud de la Tour, Philippe Soussan, Nicolas Harlé, Rodolphe Chevalier, Xavier Duportet |publisher=The Boston Consulting Group |access-date=September 13, 2019}}</ref> Investment activities are concentrated in the [[United States]] and [[China]] that totaled for about 81% of global private investments in deep tech from 2015 through 2018 with approximately $32.8 billion and $14.6 billion invested in each country, respectively. China acts as the main driver in deep tech investments with funding increasing 80% each year over that period compared to 10% each year in the US.<ref name=bcg-2>{{cite web |url=https://media-publications.bcg.com/BCG-The-Dawn-of-the-Deep-Tech-Ecosystem-Mar-2019.pdf |title=The Dawn of the Deep Tech Ecosystem |author=Arnaud de la Tour, Massimo Portincaso, Kyle Blank, Nicolas Goeldel |publisher=The Boston Consulting Group |access-date=September 13, 2019}}</ref> European countries are also active in deep tech investing. According to the [[Financial Times]], in 2017 the total funding towards deep tech companies reached around €3 billion across 600 deals.<ref>{{Cite news|url=https://www.ft.com/content/52a5e3ee-ec51-11e6-ba01-119a44939bb6|title=Europe has a chance to dominate deep tech|website=Financial Times|date=6 February 2017 |language=en-GB|access-date=2019-01-12}}</ref><ref name="whatis1" /> |
The funding for deep tech companies has increased over the years. According to [[Boston Consulting Group]], the total investments in deep tech companies increased from $1.7 billion to $7.9 billion from 2011 through 2016.<ref name=bcg-1>{{cite web |url=http://media-publications.bcg.com/from-tech-to-deep-tech.pdf |title=From tech to deep tech |author=Arnaud de la Tour, Philippe Soussan, Nicolas Harlé, Rodolphe Chevalier, Xavier Duportet |publisher=The Boston Consulting Group |access-date=September 13, 2019}}</ref> Investment activities are concentrated in the [[United States]] and [[China]] that totaled for about 81% of global private investments in deep tech from 2015 through 2018 with approximately $32.8 billion and $14.6 billion invested in each country, respectively. China acts as the main driver in deep tech investments with funding increasing 80% each year over that period compared to 10% each year in the US.<ref name=bcg-2>{{cite web |url=https://media-publications.bcg.com/BCG-The-Dawn-of-the-Deep-Tech-Ecosystem-Mar-2019.pdf |title=The Dawn of the Deep Tech Ecosystem |author=Arnaud de la Tour, Massimo Portincaso, Kyle Blank, Nicolas Goeldel |publisher=The Boston Consulting Group |access-date=September 13, 2019}}</ref> European countries are also active in deep tech investing. According to the [[Financial Times]], in 2017 the total funding towards deep tech companies reached around €3 billion across 600 deals.<ref>{{Cite news|url=https://www.ft.com/content/52a5e3ee-ec51-11e6-ba01-119a44939bb6|title=Europe has a chance to dominate deep tech|website=Financial Times|date=6 February 2017 |language=en-GB|access-date=2019-01-12}}</ref><ref name="whatis1" /> |
||
Corporations such as [[Google]], [[Facebook]], [[Amazon (company)|Amazon]], [[IBM]] and [[Apple Inc.|Apple]] show increased interest towards deep tech applications in AI, [[virtual reality]], [[Unmanned aerial vehicle|drones]], [[self-driving car]]s.<ref>{{cite book |last=Redmond |first=Eric |date=2021 |title=Deep Tech: Demystifying the Breakthrough Technologies That Will Revolutionize Everything |url=https:// |
Corporations such as [[Google]], [[Facebook]], [[Amazon (company)|Amazon]], [[IBM]] and [[Apple Inc.|Apple]] show increased interest towards deep tech applications in AI, [[virtual reality]], [[Unmanned aerial vehicle|drones]], [[self-driving car]]s.<ref>{{cite book |last=Redmond |first=Eric |date=2021 |title=Deep Tech: Demystifying the Breakthrough Technologies That Will Revolutionize Everything |url=https://books.google.com/books?id=WOdjzgEACAAJ |page=18 |isbn=9781544518954}}</ref> [[Business accelerators]] are also shifting focus from digital startups towards deep tech ventures. In 2016 [[Y Combinator]]'s batch there were 32 deep tech startups including 9 in biotech, 4 in drones and 3 in advanced hardware.<ref name=bcg-1 /> The Eindhoven-based startup accelerator [[HighTechXL]] exclusively focuses on deep tech ventures. |
||
==See also== |
==See also== |
||
Line 23: | Line 23: | ||
* [[Intermediate technology]] – sometimes used to mean technology between low and high technology |
* [[Intermediate technology]] – sometimes used to mean technology between low and high technology |
||
* [[HighTechXL]] |
* [[HighTechXL]] |
||
* [https://www.hausb.io/ HAUS Biographics] - https://whatisdeeptech.com/ |
|||
==References== |
==References== |
Revision as of 14:18, 23 June 2024
Deep technology (also deep tech or DeepTech) or hard tech is a classification of organization, or more typically startup company, with the expressed objective of providing technology solutions based on substantial scientific or engineering challenges.[1] They present challenges requiring lengthy research and development, and large capital investment before successful commercialization. Their primary risk is technical risk, while market risk is often significantly lower due to the clear potential value of the solution to society.[2] The underlying scientific or engineering problems being solved by deep tech and hard tech companies generate valuable intellectual property and are hard to reproduce.[3][4][5][6]
Definition
The term "deep tech" has been present for decades,[7] representing R&D divisions at major defense and telecommunications corporations such as Raytheon Technologies, Lockheed Martin's Skunk Works, and Bell Labs, to the more modern definition which increasingly includes companies found in the venture capital ecosystem or awardees of the Small Business Innovation Research (SBIR) program, a U.S. government program, coordinated by the Small Business Administration, that provides $2.5 Billion annually to small, U.S.-owned companies who compete for funding to develop and commercialize disruptive technologies. Deep tech doesn't refer to innovation itself, but to a category of startup companies that develop new products based “on scientific discovery or meaningful engineering innovation”.[8][9]
According to year 2019 research by the Boston Consulting Group and Hello Tomorrow, a French nonprofit that supports deep technology, the most prominent deep tech fields included advanced materials, advanced manufacturing, artificial intelligence, machine learning, biotechnology, blockchain, robotics, photonics, aerospace and space technology, electronics (including semiconductor manufacturing), cyber threat intelligence, fusion power and quantum computing. Global private investment in those fields increased more than 20% a year from 2015, and reached almost $18 billion in 2018.[3] Possible fields for deep tech application include agriculture, life sciences, chemistry, aerospace and green energy.[8] In business context, deep tech has three key attributes: potential for impact, a long time to reach market-ready maturity, and substantial requirement for capital.[3]
- Deep tech innovations are often radical and may create new markets or disrupt existing ones. Deep tech companies often address big societal and environmental challenges and have potential to impact everyday life. Silicon chips are an example of innovation that enabled calculation at previously unimaginable speed and scale.
- The time required to move from basic science to applicable technology in deep tech exceed the development time of startups based on widely available technology ("shallow tech" such as mobile apps, websites, and e-commerce services[8][4]). For instance, the development of technology behind artificial intelligence took decades, and now AI companies are rapidly developing in many fields. According to Hello Tomorrow, as of 2019 it took an average of four years to reach market in biotech and 2.4 years in blockchain.
- The demand for huge early-stage funding for R&D and prototype development and lengthy life cycle of deep tech startups forces them to abandon the established funding progression from friends and family to angel and seed money, series A and subsequent rounds leading to trade sale or IPO. Many companies are also funded by government and other types of non-dilutive grants.
History
The funding for deep tech companies has increased over the years. According to Boston Consulting Group, the total investments in deep tech companies increased from $1.7 billion to $7.9 billion from 2011 through 2016.[10] Investment activities are concentrated in the United States and China that totaled for about 81% of global private investments in deep tech from 2015 through 2018 with approximately $32.8 billion and $14.6 billion invested in each country, respectively. China acts as the main driver in deep tech investments with funding increasing 80% each year over that period compared to 10% each year in the US.[3] European countries are also active in deep tech investing. According to the Financial Times, in 2017 the total funding towards deep tech companies reached around €3 billion across 600 deals.[11][8]
Corporations such as Google, Facebook, Amazon, IBM and Apple show increased interest towards deep tech applications in AI, virtual reality, drones, self-driving cars.[12] Business accelerators are also shifting focus from digital startups towards deep tech ventures. In 2016 Y Combinator's batch there were 32 deep tech startups including 9 in biotech, 4 in drones and 3 in advanced hardware.[10] The Eindhoven-based startup accelerator HighTechXL exclusively focuses on deep tech ventures.
See also
- Venture capital
- Intermediate technology – sometimes used to mean technology between low and high technology
- HighTechXL
- HAUS Biographics - https://whatisdeeptech.com/
References
- ^ mtc. "What is Deep Tech?". TechWorks. Retrieved 2019-01-12.
- ^ "Challenges of investing into deep tech". BCG. 6 May 2021. Retrieved 2021-05-20.
- ^ a b c d Arnaud de la Tour, Massimo Portincaso, Kyle Blank, Nicolas Goeldel. "The Dawn of the Deep Tech Ecosystem" (PDF). The Boston Consulting Group. Retrieved September 13, 2019.
{{cite web}}
: CS1 maint: multiple names: authors list (link) - ^ a b "IQ Capital is raising £125M to invest in deep tech startups in the UK". TechCrunch. 27 June 2018. Retrieved 2019-01-12.
- ^ BBVA (2017-11-28). "What is 'deep tech'?". NEWS BBVA. Retrieved 2019-01-12.
- ^ Benjamin Bathke (May 14, 2019). "Deep Tech startups: Next wave of global disruptors?". Deutsche Welle. Retrieved September 13, 2019.
- ^ Storms, Lutz, C. Gilbert, Jean A. (1998). The Practice of Technical and Scientific Communication. Ablex Publishing Corporation. p. 30. ISBN 9781567503623.
{{cite book}}
: CS1 maint: multiple names: authors list (link) - ^ a b c d "What is Deep Tech and which startups are marking the road (not Uber)". Startup Business. 2018-04-20. Retrieved 2019-01-12.
- ^ Raphaël Bonnet (January 28, 2019). "What's that: Deep Tech". Philonomist. Retrieved September 13, 2019.
- ^ a b Arnaud de la Tour, Philippe Soussan, Nicolas Harlé, Rodolphe Chevalier, Xavier Duportet. "From tech to deep tech" (PDF). The Boston Consulting Group. Retrieved September 13, 2019.
{{cite web}}
: CS1 maint: multiple names: authors list (link) - ^ "Europe has a chance to dominate deep tech". Financial Times. 6 February 2017. Retrieved 2019-01-12.
- ^ Redmond, Eric (2021). Deep Tech: Demystifying the Breakthrough Technologies That Will Revolutionize Everything. p. 18. ISBN 9781544518954.