Here are two facts that may surprise many investors. The first is that deep (or emerging) technologies have become a mainstream destination for corporate, venture capital, sovereign wealth, and private equity funds. Deep tech claims a stable 20% share of venture capital funding, up from about 10% a decade ago. Second, deep tech returns are similar to those of other venture investments. (See the exhibit.) Our analysis of about 1,100 venture funds shows that over the past five years, the weighted average internal rate of return was 21% for traditional venture capital investors and 26% for deep tech-focused funds. (The nonweighted returns were 26% and 25%, respectively.)
An Investor’s Guide to Deep Tech
