Deep Tech, defined as transformative technologies based on advanced scientific advances and technical breakthroughs, plays a crucial role in achieving the Sustainable Development Goals (SDGs). By tackling some of the most pressing challenges, such as energy sustainability and water scarcity, deep tech companies are offering breakthrough solutions that have the potential to significantly change our world. For example, advances in solid-state batteries, as discussed in our blog on deep tech for sustainable energy, have the potential to revolutionize renewable energy storage and reduce carbon emissions. Likewise, innovative approaches to tackling global water challenges underscore deep tech’s potential to ensure access to clean water for all. By translating scientific knowledge into practical applications, deep tech companies not only drive economic growth but can also contribute to a more sustainable and equitable global future.
Raising venture capital plays a critical role in the success of deep tech startups as it provides a structured approach to developing innovative ideas into viable companies. This approach provides critical resources, mentoring and strategic support so startups can navigate the complex journey from idea to market. Key components of venture building include assembling a multidisciplinary team, understanding market dynamics and translating technology into market-ready products. Through comprehensive programs, venture builders provide entrepreneurs with funding, expert advice and access to modern facilities, ensuring that breakthrough innovations receive the support they need to succeed. The UNDP Impact Venture Accelerator (IVA) is an example of this, providing targeted support to companies and aiming to adapt business models, products or services to accelerate sustainable innovation and business development to achieve SDG goals. In addition, the UNDP Timbuktoo program supports innovative startups in Africa by providing funding, mentoring and market access opportunities, fostering a vibrant entrepreneurial ecosystem in the region.
Singapore’s deep-tech ecosystem serves as an inspiring model for other countries and highlights the importance of synergistic efforts that integrate academia, the private sector and government-sponsored actors. In academia, institutions and programmes such as NUS Enterprise GRIP of the National University of Singapore (NUS), A*StartCentral of the Agency for Science, Technology and Research (A*STAR) and NTUitive of Nanyang Technological University (NTU) offer dedicated programmes to build deep-tech companies and provide the talent, grants, workplaces, facilities and expert advice essential for deep-tech companies. These institutions work closely with each other through cross-institutional research and shared resources and facilities, but also cooperate with private company incubators such as the Singapore Deep Tech Alliance and GROW Accelerator. These private companies provide investment, network support and mentoring, helping the start-ups navigate the complexities of market entry and growth. In addition, government-backed players such as SGInnovate and Enterprise Singapore, as well as companies such as Xora Innovation, a wholly owned subsidiary of Temasek, further strengthen the ecosystem by providing significant investment and community support.
Navigating the deep tech landscape presents numerous challenges due to inherent technical complexity, long R&D cycles and significant capital requirements. Unlike traditional technology startups, which often focus on software or incremental improvements, deep tech companies require breakthrough advances in science and engineering. This requires a multidisciplinary approach and access to advanced research facilities, which can be difficult and costly to obtain, especially for developing countries. Longer R&D cycles mean deep tech companies must go through long development phases without immediate market validation, requiring securing patient capital from investors willing to commit for the long term.
In developing countries, these challenges are exacerbated by a lack of financial resources, a shortage of highly talented technical researchers and global competition for skilled workers. In Latin America and the Caribbean, 65% of deep-tech startups are in the early stages of development (pre-seed and seed) and have secured less than $1 million in funding. In some developing countries, this challenge is compounded by the fact that a significant proportion of investments are relatively small: 34% of funded startups receive less than $50,000. In Africa, while universities are driving the deep-tech innovation pipeline, they remain constrained and prevented from effectively collaborating with the broader ecosystem at the national and global level.
To overcome these challenges, a holistic approach with several well-coordinated initiatives is needed to create an enabling environment for building deep-tech companies. Building a strong research base and fostering a culture of continuous innovation is critical. In Singapore, universities such as NUS and NTU, alongside specialised research institutes such as A*STAR, are taking the lead in areas such as advanced materials, alternative proteins and biotechnology, nurturing a robust pool of deep-tech talent. This development was not instantaneous, but was the result of strategic investments and policy changes over the years. Initially, efforts focused on building fundamental research capacity and attracting global talent. Over time, these institutions have developed tailored support through dedicated incubation spaces such as NUS Enterprise’s BLOCK71, NTU’s NTUitive @ Blk 79 and A*STAR Enterprise’s A*StartCentral.
Collaboration between multiple stakeholders across industries and national borders is critical to the success of deep tech companies. In Singapore, deep-tech venture building ecosystem players are collaborating closely through joint research projects, knowledge-sharing workshops and cross-border incubation facilities. For example, the Low-Carbon Energy Research (LCER) is a multi-agency initiative jointly driven by the Singapore Economic Development Board and the Energy Market Authority, with A*STAR as the implementing agency working with universities such as NUS and NTU, as well as private players. In addition, Singapore’s venture builders are expanding their efforts globally and integrating with other ecosystems to foster innovation and market expansion. For example, NUS Enterprise’s BLOCK71 is expanding its presence to eight global incubation centres, including BLOCK71 Jakarta, which serves as a hub for cross-border collaboration. This makes it easier for foreign tech companies to explore Indonesian market opportunities and helps Indonesian entrepreneurs and investors access NUS research, technologies and connections to international markets.
In order to transform innovative ideas into scalable, market-ready products, developing a clear commercialization strategy is crucial. A well-defined go-to-market strategy helps deep-tech companies navigate the complexities of market entry and expansion. In Singapore, research institutes work closely with industry players to achieve early market validation, a crucial practice for successful commercialization. Large companies often provide problem statements and organize open innovation talks where startups are invited to submit solutions, pitch their ideas, and compete for opportunities. For example, the Infocomm Media Development Authority (IMDA) Open Innovation Platform (OIP) in Singapore helps companies diagnose their business challenges and crowdsource innovative digital solutions from startups, technology providers, and research institutes. This matching mechanism between companies and startups has proven to be highly effective in accelerating the commercialization of deep-tech innovations.
Singapore’s approach to fostering deep-tech companies provides inspiring lessons that other countries can adapt to their individual circumstances. The key takeaway is the importance of creating a supportive environment that integrates solid research foundations, strategic partnerships, clear commercialization pathways, and comprehensive government support. Countries can learn from Singapore’s tactics of multidisciplinary collaboration and continuous innovation by building strong networks between universities, research institutes, and industry players. In addition, facilitating early market validation through corporate startup engagements and offering tailored financing mechanisms can help overcome the high capital requirements and long R&D cycles inherent in deep tech companies. By prioritizing knowledge sharing, strategic networking, and investor education, countries can attract investment and accelerate the commercialization of innovative technologies. In addition, fostering collaboration between ecosystems can encourage cross-border innovation and market expansion. These strategic initiatives can inspire other countries to develop their own deep tech ecosystems, drive technological advancement, and contribute to sustainable development on a global scale.
This is the fifth blog in the Deep Tech series. Click here Here for the full list of blogs.
