BCG - Investors Are Betting on Postpandemic “Deep Tech” Unicorn Startups Aimed at Major Social Problems


BCG Finds That Funding for the New Innovative Field Has Grown from $15 Billion to $60 Billion in Four Years and Could Exceed $200 Billion by 2025 If a New Investor Model Emerges...

The power of mRNA technology, which led to the development of COVID-19 vaccines within months, is just one highlight of a new innovative field. The goal of deep tech is to offer breakthrough innovations to address sweeping problems like climate change. Further examples include small-scale nuclear reactors, air mobility drones, carbon-based materials (whose manufacture removes CO2 from the atmosphere), and cellular agriculture (such as artificial proteins). A new article by Boston Consulting Group (BCG) and Hello Tomorrow, “Meeting the Challenges of Deep Tech Investing,” notes that there are already unicorns in the field. There’s potential to accelerate this growth if a new investor model can be built.

Deep tech ventures need the support of a reimagined investment chain—with participation from governments, venture capital and private equity firms, and limited partners and corporations. A new investor model would address the current frictions holding back deep tech, such as mindset biases, misrepresentations, or inadequate risk-assessment capabilities.

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