Site icon ELEKS: Enterprise Software Development, Technology Consulting

What is Deep Tech and How it Builds a Better Future

Olha Zhydik
what is deep tech
what is deep tech
Article

What is Deep Tech and How it Builds a Better Future

Home Article Sustainability consulting
European deep tech companies are worth around €700B, cumulatively, with accelerated growth predicted for 2021. But how are these firms implementing innovative technology to make an impact on the world?

What is Deep Tech?

The term “deep tech” is described by TechWorks as “technology that is based on tangible engineering innovation or scientific advances and discoveries”. Its fundamental focus is to pioneer new solutions that solve society’s biggest issues; including chronic disease, climate change, clean energy and food production. Deep tech firms differ from traditional tech companies since technologists and scientists typically collaborate toward a common goal.

Deep tech’s “profound enabling power” has the potential to bring about real change. It harnesses cutting-edge technologies to create tangible societal shifts, and never has it been more relevant. The global pandemic, the urgency of the climate crisis and the rapid expansion of global populations have placed added strain on already fragile systems, and it’s these fundamental issues that deep tech is designed to address.

The key deep technologies

Deep tech covers a vast swathe of technological areas, which aren’t focussed on end-user services. These include:

  • Artificial intelligence and machine learning
  • Big data
  • Language processing
  • Vision and speech algorithms
  • Robotics
  • Blockchain
  • Advanced material science
  • Photonics and electronics
  • Biotech
  • Quantum computing

4. Energy and clean-tech

The energy market needs a radical transformation to meet and deep tech companies are using energy software development and applying avant-garde technologies to find the best sustainability solutions like investigating hydropower generation and other  or to boost the efficiency of wind and solar energy with the Internet of Things, for instance. Currently, one of the biggest obstacles to renewables is storage and a host of innovative startups are trying to solve the problem by improving batteries and optimising their use with Cloud-based technology.

5. Infrastructure

As the population expands, governments must develop the infrastructure to support it. This includes transport networks, housing, sewers, power plants and supplies, and more besides. Effective government software can aid in the planning and management of these projects. But those same governments face increasing scrutiny to reduce carbon emissions and foster sustainable solutions to population growth.

Furthermore, according to the latest G20 insights, global pandemics like COVID-19 will become more frequent as we encroach further into natural habitats. This means that whatever we choose to build next must be developed with environmental sensitivity, using sustainable production practices, while supporting a better quality of human life. This will require a massive collaborative effort from urban planners and pioneering technologists, as well as substantial investment.

G20 recommends that nations employ public-private partnerships (PPP) alongside deep technologies and green finance, to meet the challenge.

What are the challenges for deep tech?

The R&D cycle for deep tech firms is longer than regular startups, which means they’re more time and resource-consuming to set up.

Also, because of the complexity of the challenges they’re trying to address, deep tech startups may find it challenging to secure investments—even from forward-thinking angel investors—because they find it hard to understand the potential of an idea which may not have been explored. And, often, deep tech’s theoretical nature means that, without a proper technical feasibility study, development trials may end in failure. It is, by design, trying to prove the previously unprovable.

That said, investments have steadily risen over the years and traditional tech is nearing the end of its usefulness, as digital evolution gains pace. A new report published as part of the European Startups Project shows that a quarter of all European venture capital investment is being channelled into deep technologies including implementation of innovative blockchain business ideas, AI, robotics and quantum tech.

Exit mobile version