What is deep tech and how can it shape the near future?

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Deep tech is a concept we hear about more and more often. Deep tech startups make up a relatively small percentage of startups in Poland, however, the sector is growing steadily, both in Poland and around the world. However, what is deep tech in itself? The term does not have a clear definition, but the easiest way to answer this question is to refer to the figure who first used the phrase deep tech.

What is deep tech?

That figure is Swati Chaturvedi and she is the CEO of the investment company Propel(X). Her definition states that deep tech is technology that is protected, disruptive, unique and difficult to replicate. Deep tech startups are companies involved in, among other things, the development of artificial intelligence (AI), the search for novel materials or the use of drones and robots in everyday life. For that matter, deep tech can involve many fields of science such as, biochemistry, electronics or computer science.

How is a deep tech startup different from other startups?

The very specific characteristics of deep tech startups meant that they were not attractive business partners for VC funds. This was because these types of startups require a very large amount of funding compared to other companies operating outside of deep tech, and their entry into the market and simultaneous commercialization can sometimes be very difficult and take up to twice as long as a startup engaged in a field outside of deep tech. The innovative nature of the inventions created by such companies results in the fact that their potential achievements can have a major impact on the reality around us. The lead time for a given venture is much longer due to the fact that the subject of the work is a technology that is groundbreaking and is invented from scratch.

Deep tech startups can be a great opportunity for the development of humanity as a whole, but for those working on them they also represent a risk. Working in a very specific branch of technology means that the goal set by the creators may prove impossible to achieve with currently available tools. In addition, the result of the work may be impossible or very difficult to commercialize, as the achievement may not be in demand at a given time, and this is an important factor in deciding whether a project is worth investing in. With technological innovations, it is difficult to determine whether demand exists or will only arise in the next few months or years.

Legal services for deep-tech/high-tech startups Poland

When running a startup, it is important to have an adequate knowledge base, in the form of experts, and that our activities are supervised by a lawyer who is experienced in IT contracts. In the case of a deep tech startup, it would be particularly important to pay attention to the legal aspect.

Because of the much larger amounts of funding and the extended time to bring the innovation to market, it is much better to be secured with a solid contract with the VC fund and other entities we will be working with, as for this type of business, contracts and agreements are made for a relatively long period of time compared to other startups. Such long-term contracts involve risks, and as a result, they can be more complicated than you might think. The help of a qualified lawyer will lighten up the unclear provisions found in the contract and allow the entrepreneur to fully engage in the work of exploring new technologies.

Linke Kulicki Law Firm specializes in providing legal services to high-tech and deep-tech entities. Legal services for startups is one of the specialties of Linke Kulicki Law Firm. We gained experience in this area long before this form of doing business became popular. We have already worked with more than 500 entities, offering the necessary support in conducting business on the Internet market and new technologies.