Few thoughts on how do you define deep tech and what is it typical impact on investment decisions

1. What is DeepTech Mar 2021
Backing Ventures in Deep Tech creating 10x differentiated businesses
Backing Ventures in Deep Tech creating 10x differentiated businesses

2. pi
Ventures
2020
All
Rights
Reserved
Confidential
What is Deep Tech
2
“Deep technology (deep tech) or hard tech is a classification of organization, or more typically startup
company, with the expressed objective of providing technology solutions based on substantial
scientific or engineering challenges”
Wikipedia says…

3. pi
Ventures
2020
All
Rights
Reserved
Confidential
Examples
3
Simple Very Hard
Increasing Complexity of Technology
Website Construction based on
specifications by engineers
Website builder where anyone
can build using a pre-defined
templates
AI based website builder where
the requirements can be
defined at very high level and
the algorithms choose an
appropriate layout etc
Chatbot to answer queries – All
questions are pre-defined and a
look up table answers all the
questions based on that
Chatbot has pre-defined
questions but it can also handle
some undefined questions by
taking human help or some
automation
Fully autonomous bot to
answer anything thrown at it
Car which can be driven
manually
Car which has advance warning
systems and can alert the driver
for incoming issues
Fully autonomous Self Driving
Car irrespective of the road
conditions

4. pi
Ventures
2020
All
Rights
Reserved
Confidential
Technology Shifts with time
4
Simple Very Hard
Increasing Complexity of Technology
Website Construction based on
specifications by engineers
Website builder where anyone
can build using a pre-defined
templates
AI based website builder where
the requirements can be
defined at very high level and
the algorithms choose an
appropriate layout etc
Chatbot to answer queries – All
questions are pre-defined and a
look up table answers all the
questions based on that
Chatbot has pre-defined
questions but it can also handle
some undefined questions by
taking human help or some
automation
Fully autonomous bot to
answer anything thrown at it
Car which can be driven
manually
Car which has advance warning
systems and can alert the driver
for incoming issues
Fully autonomous Self Driving
Car irrespective of the road
conditions
With time, typically “hardness” of the tech moves towards left – that
means what is hard today may become simple tomorrow.
Tech trends move on this curve at different pace.

5. pi
Ventures
2020
All
Rights
Reserved
Confidential
Technology Inflection Points
5
Source: http://strategictoolkits.com/strategic-concepts/s-curve/
Inflection Points
Inflection Points in technology
comes when Consumers of that
technology can see a “10x”
difference in outcomes
As new technology comes, old
tech plateaus out
For example – long distance travel
has seen many of these curves –
traveling by trains to ships to aero
planes to super sonic planes

6. pi
Ventures
2020
All
Rights
Reserved
Confidential
Technology Inflection Points & Deep Tech Investments
6
It is imperative that one has a close eye on what technology trends are catching inflection points, what
is coming next (and when) to disrupt a technology that is in inflection
Examples
Blockchain launched with lot of hype but their adoption outside of crypto currencies is still struggling.
Will it ever become mainstream?
For many years, Artificial Intelligence was struggling to find adoption. Now it is probably at its
inflection point. Will quantum computing disrupt it and when?
3D printing has been around for ages. Now it is finding some interesting use cases like space rockets
and homes are being “printed” vs build. Will it become main stream and replace the traditional
manufacturing processes?

7. pi
Ventures
2020
All
Rights
Reserved
Confidential
Implications on Deep tech investing decisions
7
Investing in deep tech ventures too early or too late will result in sub optimal returns. One has to have
a judgement of the right timing of backing a technology trend.
Early Stage investing is a long term decision. Things can change over a period of time. Over a period of
time, one develops a keen sense of what will stay and what will get disrupted. However one has to be
willing to be wrong
Is it all skill or just luck?

8. pi
Ventures
2020
All
Rights
Reserved
Confidential
For more information, write to
manish@piventures.in
*Thanks to Prof Shivaram from IIT Bombay for the phrase
J AI HIND*