The inevitable rise of DeepTech as a new asset class – ArabianBusiness

The inevitable rise of DeepTech as a new asset class – ArabianBusiness

The consensus approaches to investment and financing haven’t evolved for decades if not longer. This doesn’t only make successful investment in DeepTech difficult and risky, it also limits the levels of funding DeepTech companies require in order to innovate.

Today, there is a sizable gap between DeepTech innovation and sophisticated financial infrastructure available to support investments in DeepTech. Compared to other industries, investment approaches to DeepTech are outdated. Those approaches were originally developed and adopted for simple, slow-moving industries. Therefore, they require legacy system modernisation.

DeepTech must become a recognised asset class on its own, available for all types of investors regardless of their exposure preferences in terms of risk and liquidity. DeepTech will inevitably be commoditised beyond product and service availability to everyday consumers, but also financially commoditised and available for the average investor, both individual and institutional.