The journey towards groundbreaking innovations is both complex and long-term. Esteemed investors understand that the development of pioneering technologies often anticipates future challenges, laying the groundwork for markets yet to mature. The commitment to deep tech demands not just patience but a blend of expertise and forward-thinking vision. The year 2023 marked a significant stride in this sector, showcasing deep tech’s potential to address some of humanity’s most pressing challenges. This progress is a testament to the collaborative efforts among investors, policymakers, educational institutions, and innovative founders, aiming to foster an environment where deep tech can truly thrive.
The previous year was monumental for deep tech, with artificial intelligence (AI) capturing the limelight alongside other remarkable advancements. The United Kingdom celebrated its inaugural orbital space flight and approved the establishment of its first vertical spaceport in Unst, highlighting the sector’s dynamic growth and its potential to reshape our future.
Despite broader economic uncertainties, deep tech investment demonstrated resilience, contributing significantly to the rebound in exit activities in the third quarter. This vibrancy is powered by a new wave of startups whose technologies are poised to influence future directions.
Looking ahead to 2024, the anticipation around deep tech’s trajectory is palpable, albeit acknowledging the challenge in forecasting its exact path. Among the key trends:
AI’s Continued Ascendancy
AI remains at the forefront, with large language models (LLMs) encountering persistent challenges. Despite these, their utility across various industries is undeniable, with broader adoption expected. The competitive landscape is heating up, with OpenAI and its counterparts, like Google’s Gemini, vying for dominance. Legal and ethical complexities surrounding AI usage and intellectual property rights will prompt significant discussions and potentially new frameworks, without immediate resolutions.
Quantum Computing
Progress in quantum computing (QC) is anticipated to continue, though without groundbreaking developments. The field will see a diverse array of technologies vying for prominence, with neutral atoms gaining notable attention. The focus will also extend to quantum sensing, inviting innovators to explore its potential applications.
Semiconductors
The quest for semiconductor sovereignty persists, with significant investments across global regions. Innovations, such as the NVIDIA H200, underscore the ongoing evolution and competitive dynamics within the sector. The rise of electric vehicles and the adoption of RISC-V architecture signal growth areas worth watching.
Space Exploration
Despite delays in manned lunar missions, the space sector remains bustling, with numerous entities aiming for the moon. The increase in satellite launches underscores the growing concerns around space debris, highlighting the need for sustainable approaches to space exploration.
Climate Tech
The urgency for climate solutions is more pronounced than ever, with solar energy leading the way in affordability and adoption. Nuclear energy is witnessing renewed interest, backed by significant investments and policy shifts, signalling a pivotal year for climate tech innovation.
Metaverse and AR
Disenchantment with the virtual metaverse persists, despite significant investments. The search for breakthroughs in augmented reality (AR) technology continues, with potential implications far beyond the AR market.
Biotech
The FDA’s approval of the first CRISPR gene therapy marks a milestone, with the sector keenly observing its impact and awaiting further clinical trial outcomes. The UK’s commitment to becoming a science superpower could catalyse innovations in synthetic and engineering biology.
Talent
The bottleneck in AI/machine learning talent, particularly in hardware and semiconductor expertise, underscores the need for a balanced focus on technological and commercial skills. As deep tech ventures grow, the emphasis on leadership and effective hiring practices will be crucial for sustaining innovation.
In conclusion, the landscape of deep tech in 2024 is set against a backdrop of continual innovation, collaborative efforts, and strategic investments. As the sector navigates the complexities of technological advancements, regulatory environments, and market dynamics, the role of visionary leadership and robust partnerships will be paramount in unlocking its full potential.