SOSV Deep Tech Trends Report 2019 Hints At A Better Future

Benjamin Joffe
Nov 6 · 3 min read

Our first report covering trends in Deep Tech is out!

It mainly focuses on our key investment areas via our programs (hardware via www.hax.co, and biotech via www.indiebio.co and www.rebelbio.co). It is embedded below followed by some key highlights.

The full report can be downloaded here.

OVERVIEW

  • Deep Tech reaches far and wide and every sector, from AgTech to Construction. If you want to interact with the physical world you need bits AND atoms.
  • Despite some spectacular failures (#Theranos), the investment landscape is very active, and dozens of funds focused on Deep Tech have emerged like Lux Capital, The Engine, IQ Capital, Entrepreneur First and many more. SoftBank has also been active in the sector with investments in over a close to a dozen deep tech startups. Yet, the sector remains underfunded which leads to opportunities (less competition on deals) but also challenges (follow-ons, in particular before series A).
  • While deep tech is not new, the number of startups has only grown recently and the best exits are yet to come. Still, some early numbers indicate the time to exit and multiples are comparable to the broader startup sector.

SECTOR HIGHLIGHTS

  • The consumer sector, which receives the most attention, is not the most active. B2B solutions for industry, enterprise and health have been multiplying, from automation to diagnostics, including things like mental health!
  • Even somewhat unglamorous sectors like construction are seeing exciting startups that help save time and improve safety.

CHINA

  • China is very active in sectors like AgTech, Manufacturing and STEM. It bought 4 times more industrial robots than the US in 2018. In AgTech, it already runs facial recognition tech at scale. Apparently, pigs have twice as many recognition points on their face as humans — the same can’t be said for geese!
  • In Synthetic Biology, the ‘Cell-Ag’ sector is booming. Some companies are expecting to get to market soon.
  • The combination of computational and wet-lab biology is accelerating the development or general or personalized treatments, and research on rare diseases.

If all those efforts go to fruition, it looks like the world will be fairly better off!

SOSV: Inspiration from Acceleration

Insights from The Accelerator VC—including our programs (HAX, IndieBio, RebelBio, Chinaccelerator, MOX, Food-X, dLab) & our startups.

Benjamin Joffe

Written by

Partner @ HAX & SOSV — Investors in 200+ Hardware Startups | Digital Naturalist | Keynote Speaker | Angel Investor | 18 years in Asia | Addicted to airports.

SOSV: Inspiration from Acceleration

Insights from The Accelerator VC—including our programs (HAX, IndieBio, RebelBio, Chinaccelerator, MOX, Food-X, dLab) & our startups.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade