Archive · 25 Jun 2025
Deeptech Funding Gap Widens, Favoring AI Over Hardware & Biotech
Imagine a race where some teams get a lot more money than others.
In the tech world, 'deeptech' companies are like those teams.
Some, like those working on AI, get tons of cash, like $2.84 billion!
But others, like those making hardware or biotech, get much less.
This is because some areas are easier for investors to understand and make money from.
Experts say the less-funded teams need special investors who understand their complex work.
They suggest the government could help by giving grants to the teams that need it most, so everyone has a fair chance to succeed.
Deeptech funding shows a significant disparity, with AI attracting most investment.
Generative AI startups lead in funding, raising $2.84 billion since 2020.
Hardware, biotech, and manufacturing technologies lag behind in securing capital.
Experts cite a lack of specialized investors and longer development timelines as reasons for funding gaps.
Calls for strategic policy support, including targeted R&D grants, to bridge the divide.
- Who
- Deeptech startups, investors, and industry experts.
- What
- A funding disparity in the deeptech sector, with AI startups receiving significantly more investment than hardware, biotech, and manufacturing technologies.
- When
- Since 2020.
- Where
- N/A
- Why
- Due to factors like the need for specialized expertise and longer development timelines in certain sectors.
Industry Challenges
Potential Solutions
Investment Decisions
Industry Challenges
Lack of specialized investors; longer gestation periods; and less predictable revenue, deterring investment.
Potential Solutions
Investment in AI-native SaaS startups is easier due to familiar business models and metrics.
- Generative AI Funding (since 2020)
- $2.84 billion
- Quantum Computing Funding (to date)
- $37.3 million
- 3D Printing Funding (to date)
- $27.6 million
- Genomics Startups Funding (to date)
- $706 million
- Industrial Robotics Funding (to date)
- $74.9 million