Every now and then, I see on LinkedIn that VCs have invested in a research project instead of a deep tech business case.

And I ask myself: WHY?

Who checked if the time-to-market is realistic? Who analyzed the scalability of the technology? Were the scientific challenges openly and honestly communicated?
In short: Did they really know what they were getting into?

I strongly believe that deep tech businesses are vital to solving the climate crisis and improving health. BUT if investors move into new technologies too early, it can destroy whole sectors (as we’ve seen with cultivated meat).
Overpromising is only half the issue. The other half is that technical due diligence is often not done with actual diligence.

Some innovations simply need more years of basic research funded by public grants before they are ready for a commercial prototype with market-ready unit economics. The standard VC model is just not built for lengthy, fundamental R&D times.

I wish startups would stop overpromising, and that investors would start taking the complexity of deep tech seriously. Capital for hardware-heavy startups is already scarce. Let’s make sure it is deployed wisely.