Companies have always been limited in their projects by the size of the investments required . High barriers to entry, an immature market and colossal expenditure were enough to discourage companies from volunteering in many sectors.
Since the advent of Deep Tech, the frontiers of investment have simply been pushed back.
Companies that dare: with their sights firmly set on the world of tomorrow, Deep Tech companies are driving breakthrough innovations and tackling the major issues of our time. Their objectives include the technological revolution, the digital revolution, climate change and the reduction of inequalities.
Although the market took root in the USA, Europe is now in a good position to develop a solid offering, and why not take over the world's leading Deep Tech market in the next 10 years?
Digital innovation is at the heart of our daily lives, and is literally shaking up a large part of our behavior, both as consumers and as entrepreneurs.
The rise of Deep Tech is at the heart of this challenge: disruptive innovations, the fruit of a great deal of R&D work, are difficult to imitate and generate major technology transfers.
The capital intensity of these start-ups is very high, and focuses in particular on the work carried out in research laboratories to provide real added value.
They also rely on new technologies such as blockchain, big data, artificial intelligence or machine learning.
These solutions generate more value creation than traditional companies, so investors are now flocking from all over to finance Deep Tech projects.
In 2017, there were more than 3,500 Deep Tech startups worldwide, according to BPI France!
The start-up market originated in the USA, but has been developing rapidly and steadily in Europe for several years.
In fact, France is fast becoming one of the most dynamic markets in the world, with over 60% of investors ranking the Hexagone among the 5 most dynamic countries for investing in Deep Tech.
Nearly 90% of them also believe that Deep Tech growth in France is higher than in the rest of Europe, according to BPI France.
In fact, France boasts both high-performance research laboratories and highly qualified researchers , as well as funding mechanisms for projects that are increasingly geared towards start-ups. Networks of investors and partners, such as SATT (whose aim is to accelerate the transfer of innovations from public research to business), are gradually being set up across the country.
Incubators are at the forefront of players supporting the growth of Deep Tech.
They offer medium- to long-term support , with several hours of advice for entrepreneurs, access to financing at preferential rates, and a stimulating ecosystem conducive to project success.
Economy and Finance Minister Bruno Le Maire decided to launch the Deep Tech plan at the inaugural session of the Innovation Council in July 2018. 70 million euros annually will be dedicated to disruptive innovation projects.
Among the measures mentioned, we can highlight :
- Strengthening individual support for French Deep Tech
- Creation of a Deep Tech project acceleration program to promote technology transfer
- Extending training programs for researchers and business leaders in the sector
- The creation of an "Emergence" grant dedicated exclusively to supporting Deep Tech projects.
Beyond these measures, there are still many challenges to face: improving access to financing, developing sector expertise, the time required to bring innovations to market, developing partnerships with major groups, and competition with the American and Chinese markets are all issues that still preoccupy many investors.
In France, in 2017, 97% of Deep Tech startups spoke out in favor of partnerships with major French or international groups, according to La Tribune!
Stanley Robotics, I-Ten, Poietis, Nawa Technologies or Snips make you dream? These entrepreneurs have dared to bring their expertise to the field of neuroscience.
The evolution of the sector and government support are making investment in Deep Tech more and more interesting, useful and, if successful, potentially profitable!
Written by our expert Paul LASBARRERES-CANDAU
December 28, 2018
