The Deep Tech concept is part of the DNA of the most technologically advanced companies. What’s more, you may know Deep Tech companies and not even know that they are Deep Tech. How can you tell them apart? We clarify the basics of this project model and analyze its current situation along the following lines.
What is Deep Tech?
In the era of technological innovation in which we find ourselves, it must be said that not all companies that are dedicated to it are the same. To make it clearer, it is not the same to deploy a project based on an already developed technology, than to be the one who gives shape to a new technological breakthrough.
It is precisely in this second case where we find the companies known as Deep Tech, which have a deep scientific and engineering development. Therefore, these are businesses that are as disruptive as possible and that can lead to truly profound changes within a particular sector or society as a whole.
Their potential is such that they are capable of creating new markets, always with a focus on current trends, such as climate change, various demographic problems or Internet connectivity, among many others.
According to Boston Consulting Group (BCG), Deep Tech companies have a number of essential and common characteristics, among which we highlight:
- They have a great impact in many professional and social areas.
- They need time to reach a level of maturity that allows them to be ready for the markets.
- They require considerable capital investment.
- One of their main challenges is to take their idea from the laboratory to the end user. That is, to turn your innovation into an eminently practical product or service.
Deep Tech is a concept that we will hear more and more in our environment. Proof of this is the growing investment in it. This grew from $9,854 million in 2015 to $17,886 million in 2018, up 22%. This translates into investors believing that the time has come to bet on finding an innovative idea that will lead the next technological revolution.
Differences between Deep Tech and other technology startups
Once you know what a Deep Tech company is, it’s time to know what makes them really different from any other technology company. Here, there are 4 key factors:
- A solid research base. R+D+I is the cornerstone of this type of project. Therefore, they require professionals with a high research capacity, with novel ideas, but based on proven scientific principles. To this end, they can build on previous technological advances.
- Many Deep Tech companies have a significant industrialization process ahead of them, as their innovations require adapted materials and hardware manufacturing.
- Need for increased funding.
- It is likely that many of the final applications of this technology will not be fully realized when the technology is developed, but will emerge later.
Current situation: main challenges and needs
To gain a better understanding of the environment in which Deep Tech companies operate, let us turn to the report “From Tech to Deep Tech”, by Boston Consulting Group. This report outlines the main challenges and needs faced by this type of project.
The first of these challenges is the time to market, which is logically longer as it is a new technology that requires further development. This means, for example, that a longer testing period is necessary.
On the other hand, there is the already mentioned considerable economic effort involved. The long development time and the need for a more complex infrastructure are mainly behind this. In these cases, expensive research and prototyping material may be required.
Another major challenge for Deep Tech companies is the high complexity and risk involved in their work. The road to commercialization is long and does not always lead to this goal. In addition, it is possible that a real need may not be met in the end.
In addition to financing, technical expertise, business knowledge, ability to access the market and find a distribution network, and talent attraction must also be considered. Among the entrepreneurs consulted by Boston Consulting Group, these are ranked as follows:
- Financing: 60%.
- Market access: 61%.
- Technical experience and knowledge: 39%.
- Business experience: 26%.
- Talent acquisition: 22%.
The Deep Tech concept has been with Galgus since its inception, because from the very beginning we had in mind to perfect WiFi connectivity in challenging environments and, to do so, we needed to be really innovative.
As a result, our CHT (Cognitive Hotspot Technology) was developed, which makes access points more intelligent, working collaboratively to shape a fast, stable and secure network. Currently, Galgus already has 5 patents of its own, which we hope to continue expanding. Interested in learning more about all its applications? Take a look at our success stories page where you will find a sample of them.