Deep tech refers to a field that aims for deep technological innovation in areas such as artificial intelligence, robotics, energy, biotechnology, and defense. In fact, in the past five years, a large number of funds and VCs that have shown outstanding returns in the deep tech field have emerged in the United States.
Example Companies
This is because the deep tech field has strong domain characteristics and thus generates a lot of profit. In the US, 150 billion dollars (approximately 192 trillion won) is invested annually in defense industry research and development alone. This means that a new startup can become a company worth more than 1 billion dollars with just a few contracts.
In fact, the deep tech sector has not been a popular sector for investors. The reason is simple: the costs involved are high, and the recovery period or the time until results are seen is too long.
But Leo Polovets of Susa Ventures says that contrary to popular belief that deep tech companies require significantly more capital and time than traditional startups, they actually have similar capital intensity. This is because there is less competition to acquire new customers and the contracts are larger. In fact, the deep tech and life sciences companies mentioned above get to market 10-25% faster than traditional companies. This is because deep tech companies can quickly accumulate valuable intellectual property (IP).
In fact, AI companies are showing rapid results in new drug development or semiconductor processes, or in existing biotech or energy businesses, new startups are growing rapidly rather than existing players. In fact, it seems that such companies are emerging one by one in Korea as well. Oh, of course, I'm not talking about 'that semiconductor' company.
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