What is Deep tech and Frontier Tech and how are they related to entrepreneurship?
Deep tech and Frontier tech are terms used to describe cutting edge and advanced technologies. According to the World Bank report in 2019, the global Deep tech market reached 1.3 billion dollars due to the increase in data processing capacity and the improvement of machine learning technology, which allows the development of practical applications of these technologies in various sectors such as healthcare, energy, manufacturing and financial services.
deep tech refers to technologies based on scientific and technological research and discoveries. These technologies include artificial intelligence, robotics, biotechnology, quantum physics, and nanotechnology. Unlike conventional technologies, the development and application of these technologies require extensive knowledge and experience in scientific and technological disciplines and often require significant investment in research and development.
frontier tech, also known as cutting-edge technologies, refers to technologies at the forefront of scientific and technological knowledge. These fields include artificial intelligence, robotics, biotechnology, quantum physics, nanotechnology, and emerging technologies such as blockchain, 3D printing, virtual reality, and augmented reality.
Like deep tech, the development and application of Frontier tech technologies require extensive knowledge and experience in scientific and technological disciplines and often require significant investment in research and development. However, Frontier tech could be considered a broader term that includes both established technologies and technologies that are emerging and still under investigation.
In conclusion, both terms refer to advanced and cutting-edge technologies, but Deep tech focuses on established technologies with practical applications, while Frontier tech encompasses a broader range of technologies, including established and still research technologies. It is important to keep these differences in mind when discussing both terms and investing in research and development in these areas.
According to a report published by CBInsights in 2020, investments in Deep Tech technologies have experienced steady growth in recent years. In 2019, more than 1,000 financing rounds were registered in this sector, with a total investment of more than 30,000 million dollars. Some of the most invested sectors include biotechnology, artificial intelligence and information technology.
In addition, the report also highlights the growing importance of investing in Frontier tech technologies such as virtual and augmented reality, robotics, quantum technology, and nanotechnology. These sectors attract investors due to their wide applications and their potential to generate large returns.
The challenges for investment in Deep tech and Frontier tech
However, there are also challenges in investing in Deep tech and Frontier tech technologies. In many cases, these technologies are still in early stages of research and development, making them riskier for investors. Furthermore, investing in these sectors requires in-depth and specialized knowledge of technology and science, which can make it difficult for investors to access suitable opportunities.
Despite these challenges, investing in deep tech and frontier tech technologies is highly attractive to many investors due to their potential to generate significant returns over the long term.
It is time for entrepreneurs in Latin America to explore deep and cutting-edge technology solutions to address critical challenges in the region and some options are:
Partner with universities and research centers: By partnering with universities and research centers, entrepreneurs can access resources and expertise in deep and cutting-edge technologies, allowing them to address critical challenges in the region more effectively.
Participate in technology acceleration programs: By participating in technology accelerator programs, entrepreneurs can connect with mentors and experts in deep and cutting-edge technology, as well as access resources and funding to fuel their development and growth.
Stay up-to-date with technological trends and advances: It is important to stay up to date with trends and advancements in deep and cutting-edge technology to ensure that the solutions they offer are relevant and effective in addressing critical challenges in the region.
If you want to talk about the Knowledge Economy, Deep Tech, Venture Capital or the challenges in technology and investment in Latin America, write to me at [email protected]
Sources: World Bank, MIT Technology Review, TechCrunch, CBInsights. (2020). Deep Tech: The Future is Now
