A deep-tech investment thesis, and why it needs a long horizon
Deep technologies have longer development cycles. Which assessment criteria differ from those used on software startups?
Deep tech differs from software in one fundamental way: the principal risk is technical, not market.
Different criteria
- Scientific proof before commercial proof
- Intellectual property as a real asset, not a decorative clause
- A seven to ten year horizon
- A need for staged, planned capital
An investor who enters deep tech expecting a three-year exit applies pressure halfway through, and that pressure is what pushes the project off course.
