Artificial intelligence (AI) is a dominant segment in deep tech, with companies collecting unique and proprietary datasets to advance AI in certain areas. However, the commercialization of some technologies and real-world applications has become more urgent. Corporate venture capital has also shown increased interest in deep tech, particularly in climate tech. Despite the decrease in funding, experts believe this could be beneficial as deep tech requires a high level of understanding in science and engineering.
Key takeaways:
- The venture market was down 38% last year, but despite a significant slowdown, sectors in deep tech showed resilience with funding numbers for quantum computing, space travel and robotics only dropping 24% in 2023.
- Investors in deep tech agree that despite a slowdown in investing, the importance of the problems it is looking to solve has kept money flowing. Areas such as sustainability and cleantech have seen renewed focus.
- Artificial intelligence (AI) continues to dominate deep tech ventures, with companies collecting unique and proprietary datasets to push AI forward in certain areas. However, investment dollars have increased as both compute and talent have become more expensive.
- Corporate investment in deep tech has increased, with corporations preferring to buy than build. This is particularly evident in climate tech as many companies are forced to cut their footprint and find new energy sources.