Investing in deep tech is challenging because these startups often involve cutting-edge fields like robotics, machine learning, and cybersecurity. These sectors are complex and require a lot of technical knowledge. Many VCs find it hard to predict which startups will succeed or how quickly their technologies will reach potential.
Rajat Khare, an experienced investor and founder of Boundary Holding, notes that this unpredictability can be daunting but also rewarding. Deep tech innovations have the power to reshape industries, so VCs need to adapt. To succeed, they focus on acquiring expertise, collaborating with technical specialists, and developing new investment approaches.
The long development cycles and high risks make it hard, but the potential impact of these technologies is worth the effort. By taking on these challenges, VCs help turn ambitious ideas into groundbreaking solutions that shape the future.