The $5 trillion global energy market emitted a staggering 37 billion tons of CO₂ in 2022 – three-quarters of the global total, according to the IEA.
Climate experts predict that 75% of greenhouse gas reductions will come from new technologies. This is where hashtag#DeepTech comes in, game-changing innovations like nuclear fusion, solid-state batteries, CO₂-based materials and chemicals, and electrolysis.
Deep tech transforms lab breakthroughs into real-world solutions. These ventures address massive, public-scale challenges while navigating long, complex R&D cycles, IP ownership, and building viable business models. By 2030, deep-tech industries are projected to be worth €8 trillion. This is not just a return on investment. It’s a transformative shift for industries, portfolios, and the planet.
What’s more, surprisingly, BCG analysis shows almost no difference in the internal rate of return or exit strategy difficulty between traditional and deep tech-focused funds.
As our investment team Nam Tran shared after SLUSH 2024, a pivotal question resonated throughout the event: “Will people who don’t care about the environment adopt your product?” That’s the real test. It’s not enough for a technology to reduce emissions, it must solve an urgent problem, compete on cost, performance, and convenience. Fission energy needs to scale safely and efficiently. Cultivated meat must taste as good as (or better than) the real thing. Advanced materials need to outperform existing options or make them look outrageously expensive in comparison. Onto deeptech itself.
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