Deep tech refers to an innovation approach that leverages new technologies, rooted in science and advanced engineering, which can provide significant advances compared to existing technologies to help solve global issues.
The novelty of technologies and how they are utilized provides the power to create new markets or disrupt existing industries. Deep tech innovations have an impact across all industries and at every level of society by addressing some of today's most urgent issues.
Characteristics of Deep Tech Startups
Successful deep tech startups tend to possess four complementary characteristics:
They are problem-focused. It can be understood that 97% of deep tech startups contribute to at least one of the United Nations' (UN) sustainable development goals, as they focus on solving significant and fundamental problems.
They work with the convergence of technologies. For example, 96% of deep tech startups use at least two technologies, and 66% use multiple advanced technologies. About 70% of deep tech startups hold patents for their technologies.
They develop physical products rather than software. 83% of deep tech startups are focused on creating a physical product. By shifting the innovation equation to bits and atoms, they bring the power of data and computation to the physical world.
They are at the center of a deep ecosystem. Approximately 1,500 universities and research laboratories are engaged in deep tech, and deep tech startups received about 1,500 grants from governments in 2018.
What Problems Can Deep Tech Solve?
To better understand the impact of deep tech on our world, BCG and Hello Tomorrow studied 1,646 deep tech startups and mapped their focus according to the specified United Nations Sustainable Development Goals. The 17 goals of the UN are a plan for a more sustainable, equitable world. They cover a range of issues such as poverty, hunger, inequality, and climate action. The aim is to achieve all goals by 2030. Deep tech plays a significant role in this regard.
According to the research by BCG and Hello Tomorrow, many startups actually contribute to multiple goals among the 17, and each goal is relevant to at least 5% of companies.
51% of startups focus on technologies that help Goal 3: Health and Well-being. This includes advancements in medicine, whether it's developing a vaccine or seeking treatments for cancer.
50% contribute to Goal 9: Industry, Innovation, and Infrastructure. R&D is a significant objective for this goal, hence it makes sense for deep tech to contribute significantly to this field.
20-30% of the examined startups align with Goal 11: Sustainable Cities and Communities, Goal 12: Responsible Consumption and Production, or Goal 13: Climate Action.
The UN summarizes how the 17 Sustainable Development Goals are interconnected. In this context, deep tech spurs additional innovations in one area while advancing another.
Deep Tech in Numbers
Despite the risks of failure, businesses and investors are showing increased interest in deep tech. According to our preliminary forecasts, deep tech investments (including private investments, shares, mergers, acquisitions, and IPOs) grew from $15 billion in 2016 to over $60 billion in 2020, more than quadrupling over a five-year period. The average reported amount per investment for startups and scale-ups increased from $13 million in 2016 to $44 million in 2020.
For early-stage startups, the latest survey conducted by Hello Tomorrow found that the amount per investment rose from $36,000 to $2 million.
In addition, funding sources are expanding. While information and communication technology (ICT) and biopharma companies continue to invest significantly in deep tech, more traditional large businesses are becoming increasingly active.
About Hello Tomorrow Turkey
Hello Tomorrow Turkey is a hybrid non-profit organization and consulting firm that accelerates science and technology-based entrepreneurship. Since its establishment in 2016, Hello Tomorrow Turkey has facilitated the commercialization of over 300 technologies by combining science, technology, and entrepreneurship to accelerate solutions that shape the future.
Since its inception, it aims to create an entrepreneurship ecosystem in Turkey that not only consumes technology but also produces it. To this end, since 2016, Hello Tomorrow Turkey has;
Already led the formation of the deep tech ecosystem in Turkey, creating a science and technology ecosystem of up to 5,000 people today.
Accelerated the commercialization of over 300 technologies in categories such as energy, health, aviation, and drug discovery by connecting them with investors and institutions, thus contributing to innovation and R&D in Turkey and worldwide.
Brought one of the world's most prestigious deep tech competitions to Turkey. Every year, over 15 entrepreneurs from Turkey continue to be selected as “Deep Tech Pioneers” by an international jury team. This means connecting Turkish startups developing technology with global giants.
Enabled entrepreneurs from Turkey to showcase their achievements at the summit, dubbed “the Davos of Deep Tech,” held annually by Hello Tomorrow Global in Paris. In the last two years, at least one Turkish startup has been selected at the summit, representing a 1.5% success rate.
Hello Tomorrow Turkey provides innovation services to institutions both in Turkey and worldwide with its proprietary high-tech database. This helps facilitate faster integration of next-generation technologies and innovations into the value chains of institutions.
Hello Tomorrow Turkey also hosts a consulting company that offers customized scouting services for institutions (matching companies' technology needs with partnerships with startups in local and global networks), innovation consulting, and sectoral report preparation featuring scientific analyses and technological forecasts of innovations.
Hello Tomorrow Turkey continues to bring together all companies wanting to pioneer innovation, all technology-producing startups, and investors in its ecosystem. All startups and companies looking to contribute innovation to the world can be part of the Hello Tomorrow Turkey network.
For more information, you can email istanbul@hello-tomorrow.org.
