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Published at Tuesday, November 19, 2024 11:51 AM on the Up Next organization's page

VCs and LPs: Time to Embrace DeepTech's Long-Term Potential

From AI and quantum computing to clean energy and advanced materials, DeepTech companies are solving some of the world’s most critical challenges, with the potential to redefine industries. 
But to succeed, these ventures need long-term investment and strategic patience, something the traditional VC model may not always provide even more in 2024.

🚀 Why DeepTech Demands a New Approach
Given the current lack of M&As and the resulting liquidity challenges for LPs, 2024 is the perfect time to invest in DeepTech. Unlike other startups, DeepTech ventures offer a solid and less risky output over time thanks to IP, providing LPs with strong long-term returns.

💡 A Strategic Opportunity for VCs and LPs
The shift to more patient capital doesn’t just benefit startups—it’s an incredible opportunity for investors. As LPs increasingly understand the long-term value DeepTech can deliver, there’s growing momentum for funds that can support the sector through extended timelines.
In fact, many LPs are already looking for ways to tap into the transformational potential of DeepTech while managing risk over the long run. According to PitchBook (2024), investors are becoming more open to models that focus on strategic value and extended growth cycles, especially in high-impact areas like AI, sustainability, and biotech.

🌍 The Future of DeepTech is Now
DeepTech is not just a buzzword—it’s the future of innovation. And as we look toward 2024, it’s clear: VCs who embrace this shift and adapt their strategies will be the ones at the forefront of the next wave of transformative breakthroughs. The opportunity is immense. With the right investment models in place, we can drive not only financial returns but also create lasting positive impact across industries.
Is your fund ready to seize the DeepTech opportunity?