The article discusses the evolution of deep tech exits over the past decade. Deep tech refers to innovative technologies that have the potential to solve significant problems or create new markets. The author, Karthee Madasamy, notes that these innovations are no longer considered science fiction and that the value of the deep tech businesses being built is substantial.
Here are some key points from the article:
- Health tech has been a leading category: Health tech companies have accounted for the most deep tech exits over the past decade, primarily due to computational biology companies going public.
- Compute and mobility are also significant categories: Compute includes areas like quantum computing and next-generation semiconductors, while mobility refers to transportation or autonomous vehicles.
- Climate or clean energy is gaining traction: The recent climate tech renaissance has created a demand for companies utilizing physics and chemistry to address removing carbon from the atmosphere or lowering emissions.
- Data and applied AI companies are on the rise: With the current AI gold rush, it’s expected that this category will continue to increase in exits in the coming years.
- M&A will drive a significant percentage of these exits: Larger companies are looking to buy into AI innovation to ensure they’re not left behind.
Overall, the article highlights the growth and evolution of deep tech exits over the past decade. It suggests that these innovations have become increasingly mainstream and that the opportunities for significant exits continue to grow.
Key statistics:
- 99 health tech companies have exited via $1 billion+ deals
- 12 compute companies have gone public in the last two years
- 15 deep tech companies exited via SPACs in 2022
- 3 out of 4 $1 billion+ deep tech exits this year have been via SPACs
Potential takeaways for investors and entrepreneurs:
- Deep tech is a growing market with significant opportunities for innovation and exits.
- Health tech, compute, mobility, climate or clean energy, and data/applied AI are key categories to focus on.
- M&A will continue to drive a significant percentage of these exits, making it essential for companies to be prepared for potential acquisition.
- SPACs may still offer an attractive option for companies looking to go public quickly.
