How science and deeptech can unlock impact at scale, and why intentionality, accountability, and early-stage capital are key to doing it right.
Photography source: CDC on Unsplash
We live in a world shaped by rapid innovation, where science is at the heart of transformative change, and constantly challenges our understanding of what is possible. From reversing climate change to curing diseases, science has proven its ability to tackle humanity’s most complex problems. Technologies such as MRI have revolutionised non-invasive diagnostics, while carbon capture is helping improve quality of life on earth.
However, if we look at the challenges ahead - such as the increasing consumption of energy from data centres with the growing applications of AI, the growing global warming that challenges food security, the prevalence of bacteria that is now ultra resistant to existing antibiotics, the growing number of cancers in younger population - we understand we are only beginning to tap the potential of scientific innovation.
The application of deeptech to impact sectors has grown significantly in the past years. According to dealroom, the percentage of deeptech funding directed at climate technologies alone increased massively from 7% in 2016 to 38% in 2022, demonstrating a strong signal of momentum.¹
As deeptech becomes more attractive to investors - strengthened by growing exit activity and strong returns - funding remains critical to scaling these technologies. The Draghi report highlights deeptech as one of Europe’s greatest impact investment opportunities. Yet, to unlock its full potential, more capital needs to be mobilized at the earliest stages of innovation.²
We (Europe) must unlock our innovative potential
**— Mario Draghi, former European Central Bank President**
Science and deep technology have the power to unlock solutions to massive challenges - and with that, access to massive markets. Yet, with such potential also comes an important responsibility. Many technologies underlying scientific advancements can have a dual-use nature, i.e. they can be directed towards positive outcomes or not.
Take Biorce, for example - one of our portfolio companies. They’re developing a model that interprets clinical data to power a platform of products accelerating clinical trials and bringing drugs faster to market. Their technology is being used to shorten the time and reduce the cost of delivering drugs for life-threatening diseases to patients. But the same model could be used to develop products without an intentional impact angle. As impact investors, we act as a sounding board and help influence the direction toward intentional, positive outcomes.
Does this mean that technology is bad? Not at all. It means intentionality matters. Technology is a tool; it is how we use it that makes it beneficial or harmful. Those that shape how these technologies are used have an important role to play. At early stages, that includes founders and investors.
Technology can do great things, but it does not want to do great things – it does not want anything.