Generalist VCs back in, but specialists steer deeptechs

Deeptech startups have longer maturation cycles as they focus on creating intellectual property

- Rwit Ghosh

Generalist venture capital (VC) funds are finally waking up to deeptech, unlocking a larger capital pool for the sector. Their entry is prompting specialist funds to move beyond early-stage bets and make growth-stage investments, helping startups bridge the gap to commercialization.

Traditionally, deeptech startups, companies working on advanced areas such as quantum computing, aerospace, robotics and material science have longer maturation cycles as they focus on creating intellectual property. These firms often require significant investments in time, money and research. With generalist funds having larger purses, they can offer bigger cheques to help keep the journey on track.