dotlah! dotlah!
  • Cities
  • Technology
  • Business
  • Politics
  • Society
  • Science
  • About
Social Links
  • zedreviews.com
  • citi.io
  • aster.cloud
  • liwaiwai.com
  • guzz.co.uk
  • atinatin.com
0 Likes
0 Followers
0 Subscribers
dotlah!
  • Cities
  • Technology
  • Business
  • Politics
  • Society
  • Science
  • About
  • Technology

Investing In Deep Tech Is Akin To Investing In The Future

  • March 10, 2020
Total
0
Shares
0
0
0

Deep technology has the potential to solve the world’s biggest societal issues. This has not gone unnoticed by nations – Singapore, for example, has injected an additional S$300 million into its Startup SG Equity scheme in its recent Budget 2020 announcement, to support the commercialisation of startups whose businesses are based on innovative research.

However, with multiple layers of technicalities and complexities involved, transformational deep tech can be a tricky venture for investors, especially non-tech ones, to get into. While some practice the “spray and pray” approach by channelling funds into every technology company with hopes for one to become the next unicorn, the same approach might not be feasible for deep tech, given that larger, more “patient” capital is required.

Despite the challenges, deep tech can translate to impactful returns on a global scale. For investors, it pays to understand developments in science and technology. Here are some key trends we have identified.

AI is here to stay

Artificial intelligence (AI) has been trending on almost every investor’s list, so it is unsurprising to see it remain a key investment area in 2020.

While AI has been touted as the be-all-end-all technology of the future, it is still currently limited to managing simple, specific tasks. However, as we are still quite a distance from achieving “artificial general intelligence” — the stage where machines can perform any tasks a human can — a safer bet would be to identify gaps into which AI in its current state of maturity can readily pug.

For instance, AI companies in banking can resolve specific pain points such as speeding up know your customer or anti-money laundering processes.

The resurgence of Medtech and healthcare AI

As societies struggle to cope with ageing populations, demand for quality healthcare will continue to rise exponentially across the world. In fact, the medical technology market in Asia is poised to grow to about $133 billion this year, surpassing the European Union as the second-largest market globally.

We are witnessing medtech companies emerging from “stealth” after years of undergoing proofs-of-concept and clinical trials. One of our portfolio companies, See-Mode, which helps clinicians improve prediction and assessment of stroke and vascular disease through AI, received a Class B medical device approval from the Singapore Health Sciences Authority for its augmented vascular analysis product and is set to close its first commercial contracts.

In 2020, we expect more medtech players coming to the fore, pushing out innovations with successful case studies and putting investment dollars to good use.

Cracking the quantum code

Quantum technology may sound like science fiction, but we believe that it is an inevitable technology. It has the potential to be a game-changer in a wide range of real-life applications — from superfast data processing and computing, defence and security, to managing energy use and production. Recognising this, nations and tech giants like Amazon, Microsoft, IBM and Google are pouring more money into this space.

This nascent sector is both new and expensive, making it difficult for investors to gauge the kind of returns they may see and when. Our view as investors in early-stage quantum companies is to identify those that create an environment which will make quantum computing more accessible to all. The hardware configuration of a general quantum computer is still the subject of debate so unless you have deep pockets, quantum may not be an area the average VC would want to consider.

Sowing the seeds for growth

As a result of climate change and the rapidly growing population, the world is set to face a 56 percent shortfall in food nutrition by 2050. For countries like Singapore, which relies on food imports, finding solutions towards self-sufficiency is critical.

Consumers are also becoming more socially conscious and selective in the food they consume, developing greater appetites for more sustainably produced foods.

These trends are driving demand, leading to greater investor interest in agriculture and food technology startups. We foresee this to be an area of interest in the coming year.

Autonomous vehicles on the move

Thanks to strong support from the Singapore government along its Smart Nation journey, development for autonomous vehicles (AVs) has shifted into gear in the last year with autonomous forklifts being tested in warehouses and autonomous trucks being trialled at the Port of Singapore.

However, there are still many technological, infrastructural (including insurance) and regulatory challenges to consider before we see the mass deployment of true Level 5 vehicles or vehicles with full driver automation. In the meantime, technologies that enhance existing sensors, energy storage, navigation and decision support — components essential for AVs — will offer startups a chance to monetise in the interim period before Level 5 vehicles hit the road.

These components can be deployed as part of existing vehicles and infrastructure, giving them an earlier time-to-market, while the development of a full AV takes place in parallel.

Taking the deep tech leap

Investing in deep tech is akin to investing in the future. Whether it’s in areas of sustainability, mobility or health, we believe that in deep tech lies the path to solving some of mankind’s biggest challenges. The history of technology has proven that those willing to take the plunge early will reap the biggest rewards. That said, as pragmatic investors, we are highly selective as to what areas to place our bets in. It is perhaps more important that a company can to go the distance until its category matures, than for the company to have the brightest, shiniest technology.

Despite its challenges, deep tech is an investment territory with immense potential and opportunities. Those who take the plunge, capitalise and harvest these opportunities now stand to make a positive impact on the world.

 

Hsien-Hui Tong is the head of venture investing at SGInnovate.

Total
0
Shares
Share
Tweet
Share
Share
Related Topics
  • Artificial Intelligence
  • Autonomous Vehicles
  • Deep Tech
  • SGInnovate
  • Smart City
dotlah.com

Previous Article
  • Features
  • People

The Role of the Youth in Socio-Economic Development

  • March 10, 2020
View Post
Next Article
  • Technology

Enabling Battery-powered Silicon Chips To Work Faster And Longer

  • March 10, 2020
View Post
You May Also Like
View Post
  • Gears
  • Technology

Apple Vision Pro upgraded with the powerful M5 chip and comfortable Dual Knit Band

  • Dean Marc
  • October 15, 2025
View Post
  • Gears
  • Technology

Meet Samsung Galaxy Tab S11 Series: Packing Everything You Expect From a Premium Tablet

  • Dean Marc
  • September 4, 2025
View Post
  • Technology

Malaysia’s ‘ASEAN Shenzhen’ needs some significant legal reform to take off — here’s how

  • dotlah.com
  • August 25, 2025
View Post
  • Gears
  • Technology

Samsung Electronics Debuts Odyssey G7 Monitors, Showcasing Top Games on Its Displays at Gamescom 2025

  • Dean Marc
  • August 20, 2025
View Post
  • Artificial Intelligence
  • Technology

Thoughts on America’s AI Action Plan

  • Dean Marc
  • July 24, 2025
View Post
  • Technology

ESWIN Computing launches the EBC77 Series Single Board Computer with Ubuntu

  • dotlah.com
  • July 17, 2025
View Post
  • Gears
  • Technology

Samsung Galaxy Z Fold7: Raising the Bar for Smartphones

  • Dean Marc
  • July 9, 2025
View Post
  • Cities
  • Technology

Meralco PowerGen’s PacificLight starts up 100 MW fast-response plant in Singapore

  • dotlah.com
  • June 20, 2025


Trending
  • Hipster businessman commuter setting up electric bicycle when traveling home from work in city 1
    • Cities
    6 Convincing Reasons To Go All-Electric This Year
    • October 27, 2020
  • 2
    • Lah!
    • Technology
    Payment Services Act Comes Into Force
    • January 29, 2020
  • 3
    • Technology
    NTUC Income Launches SNACK, Singapore’s First Bite-sized, Stackable Insurance That Seamlessly Integrates Into Daily Lifestyle Activities
    • June 16, 2020
  • 4
    • People
    • World Events
    5 Lessons We Must Take From The Coronavirus Crisis
    • August 25, 2020
  • 5
    • Technology
    Singapore Signs MOU With The Republic Of Korea To Enhance Cybersecurity Cooperation
    • November 25, 2019
  • 6
    • Lah!
    • Technology
    IPOS And SGX Launch Pilot Programme To Help Companies Identify And Communicate The Value of Intangible Assets Information To Stakeholders
    • February 5, 2020
  • 7
    • Technology
    Singapore On Track To Develop Vibrant 5G Ecosystem, Underpinned By A World-Class, Secure And Resilient 5G Infrastructure
    • June 29, 2020
  • 8
    • Lah!
    Sunseap’s Solar Capacity In Singapore Crosses 300 MWp Milestone
    • May 9, 2020
  • public-bus-mitchell-johnson-nd5oU1Duhf0-unsplash 9
    • Cities
    Want To Create 5 Million Green Jobs? Invest In Public Transport In Cities
    • April 15, 2021
  • 10
    • Society
    NUS Business School Launches New Master Of Science In Accounting Programme
    • October 30, 2020
  • 11
    • Lah!
    • Technology
    Locally Developed 60-Second Breath Test Receives Provisional Authorisation From HSA
    • May 24, 2021
  • woman-face-mask-flowers-pexels-uriel-mont-6280951 12
    • Features
    • People
    How To Relieve Stress & Anxiety During The COVID-19 Pandemic
    • May 6, 2021
Trending
  • 1
    Why climate summits fail – and three ways to save them
    • October 21, 2025
  • Bluetooth speakers 2
    Best Bluetooth Speakers Under $200 (2025 Edition)
    • October 16, 2025
  • 3
    Apple Vision Pro upgraded with the powerful M5 chip and comfortable Dual Knit Band
    • October 15, 2025
  • 4
    Apple unveils new 14‑inch MacBook Pro powered by the M5 chip, delivering the next big leap in AI for the Mac
    • October 15, 2025
  • 5
    Apple introduces the powerful new iPad Pro with the M5 chip
    • October 15, 2025
  • 6
    Singapore’s national identity excludes those who don’t look like a ‘regular family’
    • October 9, 2025
  • Smart Watch 7
    Best Smartwatches, Your Gateway to Health Monitoring and Everyday Use
    • October 5, 2025
  • Cooking pots and pans 8
    Best Pots and Pans 2025: All-Season, All-Purpose Picks for Every Kitchen
    • September 23, 2025
  • 9
    Politicians love comparing NZ’s economy to Singapore or Ireland – but it’s simplistic and misleading
    • September 21, 2025
  • Kitchen Knives - Best All-Around Picks in 2025 10
    Kitchen Knives : The Surgeons of Cooking – Best All-Around Picks in 2025
    • September 15, 2025
Social Links
dotlah! dotlah!
  • Cities
  • Technology
  • Business
  • Politics
  • Society
  • Science
  • About
Connecting Dots Across Asia's Tech and Urban Landscape

Input your search keywords and press Enter.