What is Deeptech
4 likes877 views
This document discusses deep technology and deep tech investing. It defines deep technology as technology solutions based on substantial scientific or engineering challenges. It provides examples of technologies ranging from simple to very hard, such as basic websites to fully autonomous systems. The document notes that technology trends move from hard to simple over time. It discusses technology inflection points where consumers see a 10x difference, and how these points are important for deep tech investing decisions, as investing too early or late can result in suboptimal returns. Timing investments around technology trends requires judgment to identify what will stay and what will be disrupted.
What is Deeptech
- 1. What is DeepTech Mar 2021 Backing Ventures in Deep Tech creating 10x differentiated businesses Backing Ventures in Deep Tech creating 10x differentiated businesses
- 2. pi Ventures 2020 All Rights Reserved Confidential What is Deep Tech 2 “Deep technology (deep tech) or hard tech is a classification of organization, or more typically startup company, with the expressed objective of providing technology solutions based on substantial scientific or engineering challenges” Wikipedia says…
- 3. pi Ventures 2020 All Rights Reserved Confidential Examples 3 Simple Very Hard Increasing Complexity of Technology Website Construction based on specifications by engineers Website builder where anyone can build using a pre-defined templates AI based website builder where the requirements can be defined at very high level and the algorithms choose an appropriate layout etc Chatbot to answer queries – All questions are pre-defined and a look up table answers all the questions based on that Chatbot has pre-defined questions but it can also handle some undefined questions by taking human help or some automation Fully autonomous bot to answer anything thrown at it Car which can be driven manually Car which has advance warning systems and can alert the driver for incoming issues Fully autonomous Self Driving Car irrespective of the road conditions
- 4. pi Ventures 2020 All Rights Reserved Confidential Technology Shifts with time 4 Simple Very Hard Increasing Complexity of Technology Website Construction based on specifications by engineers Website builder where anyone can build using a pre-defined templates AI based website builder where the requirements can be defined at very high level and the algorithms choose an appropriate layout etc Chatbot to answer queries – All questions are pre-defined and a look up table answers all the questions based on that Chatbot has pre-defined questions but it can also handle some undefined questions by taking human help or some automation Fully autonomous bot to answer anything thrown at it Car which can be driven manually Car which has advance warning systems and can alert the driver for incoming issues Fully autonomous Self Driving Car irrespective of the road conditions With time, typically “hardness” of the tech moves towards left – that means what is hard today may become simple tomorrow. Tech trends move on this curve at different pace.
- 5. pi Ventures 2020 All Rights Reserved Confidential Technology Inflection Points 5 Source: http://strategictoolkits.com/strategic-concepts/s-curve/ Inflection Points Inflection Points in technology comes when Consumers of that technology can see a “10x” difference in outcomes As new technology comes, old tech plateaus out For example – long distance travel has seen many of these curves – traveling by trains to ships to aero planes to super sonic planes
- 6. pi Ventures 2020 All Rights Reserved Confidential Technology Inflection Points & Deep Tech Investments 6 It is imperative that one has a close eye on what technology trends are catching inflection points, what is coming next (and when) to disrupt a technology that is in inflection Examples Blockchain launched with lot of hype but their adoption outside of crypto currencies is still struggling. Will it ever become mainstream? For many years, Artificial Intelligence was struggling to find adoption. Now it is probably at its inflection point. Will quantum computing disrupt it and when? 3D printing has been around for ages. Now it is finding some interesting use cases like space rockets and homes are being “printed” vs build. Will it become main stream and replace the traditional manufacturing processes?
- 7. pi Ventures 2020 All Rights Reserved Confidential Implications on Deep tech investing decisions 7 Investing in deep tech ventures too early or too late will result in sub optimal returns. One has to have a judgement of the right timing of backing a technology trend. Early Stage investing is a long term decision. Things can change over a period of time. Over a period of time, one develops a keen sense of what will stay and what will get disrupted. However one has to be willing to be wrong Is it all skill or just luck?
- 8. pi Ventures 2020 All Rights Reserved Confidential For more information, write to manish@piventures.in *Thanks to Prof Shivaram from IIT Bombay for the phrase J AI HIND*