DEEPTECH’S CRITICAL ROLE IN DEVELOPING TOMORROW’S SOLUTIONS

Michel de Lempdes, Managing Partner at Omnes and President of France Deeptech, shares his vision for deeptech and explains why private investments must be funneled into the sector in Europe.

In a rapidly changing world, what is the role of deeptech in today’s society?

Deeptech plays a transformative role in our rapidly evolving world. It goes beyond the incremental advances often seen in traditional tech sectors, tackling fundamental scientific and engineering challenges which have the potential to reshape entire industries. The innovations emerging from deeptech are addressing some of society’s most pressing issues, from climate change and energy sustainability to healthcare and security. By leveraging breakthroughs in fields like artificial intelligence, quantum computing, advanced materials, and biotechnology, deeptech companies are laying the groundwork for solutions which not only drive economic growth but also have profound societal impacts. As we navigate an increasingly complex global landscape, the role of the deeptech industry is to provide the critical innovations which will help us meet the challenges of tomorrow.

Why is it critical that private investments are funneled into deeptech companies?

Private investments are crucial for the growth and success of deeptech companies because these ventures typically require significant capital and long development timelines before they can reach commercialization. Unlike more conventional tech start-ups, deeptech companies often need to overcome substantial technical risks and require sustained R&D efforts. Public funding alone is insufficient to bring these groundbreaking technologies to market. Private investors, particularly those with an in-depth understanding of the sector, provide the necessary capital, strategic support, expertise, and networks which can help accelerate these innovations’ development and scaling. By funneling investments into deeptech, we can ensure these high-potential companies have the necessary resources to turn their cutting-edge technologies into commercially viable solutions, ultimately driving economic growth and addressing critical global challenges.

How would you describe the deeptech investment landscape in Europe today? What opportunities does it present? 

With €9.3 billion raised by deeptech start-ups in Europe in Q2 2024, the investment landscape in Europe is increasingly vibrant and full of promise. The UK leads the way with €3.5 billion, followed by France (€2.0 billion) and Germany (€1.2 billion). In recent years, we have witnessed a substantial increase in both the number of deeptech start-ups and the volume of capital being directed toward them. Europe has a rich and robust scientific history, with world-class universities and research institutions generating a steady stream of innovative technologies. Coupled with a growing network of investors with an increasingly sophisticated understanding of the unique opportunities within deeptech, this environment is proving to be highly conducive to these companies’ success. However, there is still a significant gap between early-stage innovation and the later stages of scaling and commercialization. This presents a major opportunity for investors prepared to support companies through these critical stages, as they can reap substantial financial returns while also driving the technological advancements which could reshape industries. As Europe continues to focus on sustainability and digital transformation, deeptech companies are particularly well-positioned to provide the essential solutions required to meet these objectives, further enhancing the sector’s attractiveness to investors and policymakers.

At Omnes, we are proud to be a leading Series A investor in Europe’s deeptech industry, consistently backing innovative companies which have the potential to make a profound impact on both the economy and society. Furthermore, recognizing the importance of fostering a collaborative ecosystem, we co-founded France Deeptech, an organization which works to accelerate the growth of French deeptech companies by bringing together investors, entrepreneurs, and research institutions to support the development of breakthrough innovations. Of course, the organization intends to broaden its scope to encompass the deeptech landscape across Europe.