Financing Deep Tech

Abstract

Deep tech companies - those built on
\n advances in biotechnology, robotics, electronics, artificial
\n intelligence, and other advanced technologies—aim to solve
\n complex social and environmental challenges. Today the
\n majority of deep tech companies are being launched in
\n developed countries, yet the solutions they can provide are
\n applicable globally. Many of these solutions are especially
\n critical to emerging markets, as the intractable challenges
\n of climate, health, and connectivity, among other issues,
\n disproportionately affect these nations. Addressing these
\n challenges is a strategic priority for development finance
\n institutions and governments worldwide, so financing deep
\n tech companies and boosting deep tech ecosystems in order to
\n deliver new solutions globally is a pressing matter. Doing
\n so, however, requires substantial capital and carries a
\n higher degree of risk than ordinary venture investments.
\n This note examines the process of financing a deep tech
\n company, including the benefits and drawbacks of currently
\n available types of financing, and suggests examples of
\n promising but not yet widespread alternatives.