Propel(x) is at the forefront of the deep technology investment space. We’ve discussed what distinguishes a deep technology startup in a past blog, but now it’s time to look at why deep tech is such a hot market right now.
In the current market, there is a potential economic incentive to investing in deep technology companies.The sky-high valuations of companies like Facebook, Twitter, and Instagram have created a decline in the valuation of some deep technology companies. These low valuations could mark a potentially favorable time and opportunity to invest. (Just keep in mind that investments in early stage companies are very risky and can result in the loss of capital.) In fact, many VCs have shifted toward science-based startups, as reported by the New York Times in “Venture Capitalists Return to Backing Science Based Startups”.
While the monetary implications of the deep tech industry are potentially high, investors can also be incentivized by the desire to make an impact on the future. Though Twitter’s announcement that it will double its character count made headlines, the shelf-life on such trendy investments can feel hollow to more serious investors who may have interest in higher impact science technologies.
Ultimately, the combination of a possible return and the chance to make a difference has driven many investors into the arms of the deep tech market. By joining the fray today, you get the chance to include deep tech in your portfolio before it is potentially steeped by higher valuations.
You can start browsing deep tech investment opportunities today by joining Propel(x).