Deep Tech

Trends 2019

sosv.com/deeptechtrends
Introduction
A growing number of researchers, scientists and engineers

are starting companies. Many of them engage in ‘Deep Tech’,
the combination of software and science.

They solve problems of high complexity and high value

in sectors such as agriculture, energy, industry and health,
covering many of the UN Sustainable Development Goals.

At SOSV, our mission is to help solve the world’s most

pressing problems -- funding and mentoring startups that
bring positive change at a grand scale, tackling human and
planetary health, and improving the quality of life for all.
This document shows that solutions are on their way!
DeepTech DeepTech
Trends 2019 Trends 2019
Disclaimer This document is made available,
and may be updated, at www.sosv.com

SOSV invests in about Our VC fund specializes in prototype-stage deep tech

150 startups / year startups. We sometimes see emerging trends before others.

This document is for This document is based on publicly available sources

information only and on our own insights. We own equity positions
in many of the companies referenced (see next page).

This document does not constitute an offer to sell securities

or a solicitation for investment, which can only be made
by the delivery of specific documents to accredited investors.

Furthermore, this document does not constitute investment

advice, an offer to provide such advice, or a basis for making
any investment decision.  
DeepTech
Trends 2019
OVERVIEW CONSUMER HEALTH B2B BIOTECH BIOTECH
Avidbots Bowl BBB AiSight AlgiKnit New Culture
BitMex Kegg Biopsin Apix Because Animals New Wave Foods
FormLabs Lilu Bisu Avidbot BeeFlow NotCo
Geltor Looking Glass Bitome Clean Robotics BiomeSense OpenTrons
GetAround Makeblock Bravrr Craft Robotics Cambridge Crops Perfect Day
Jump Bikes Minut Caura EIO Diagnostics Catalog Prellis Biologics
Makeblock Nura Criam Elephant Robotics Chronomics Serenity Bioworks
Memphis Meats Oasis Elapta Forward Robotics Clara Foods sRNAlytics
Nura PetCube Feel Japet Convalesce Stamm
Perfect Day Presso Flow Neuroscience Mechasys Diadem Biotherapeutics Sun Genomics
Simbe Robotics PushMe FoodMarble Nordetect Digi.Bio SyntheX
RayBaby Kokoon Novo Nutrients DNA Lite Tinctorium
Sprite Robotics Labrador Systems Nuada Electro-Active Wasteless
Youibot Lief Therapeutics Plecobot Endless West
Mindset Rebartek Finless Foods
Moona ShapeMeasure Gavilan Biodesign

SOSV Nerv Smart Shepherd Geltor

Pinpoint SmarTex Jungla
Sana Health Somatic Lingrove

Startups Zennea TensorField

Unspun
Livin Farms
Lupa Bio

Quoted
Viabot Memphis Meats
VoltStorage MycoWorks
Wastack New Age Meats DeepTech
Trends 2019
Youibot
About SOSV
Deep Tech & Hand-on

Global early stage $650M AUM (new $250M fund)

Deep Tech fund >800 startups +150/year

Programs with Labs & Experts

for Hardware, Biotech, Food…
Global Presence
London
Biotech
Ireland
Back office Shanghai
Paris Tokyo
SF Cross-border web
NYC Liaison Hardware
Hardware
Food Shenzhen Taipei
Biotech
Blockchain Hardware Mobile

DeepTech
Trends 2019
 Makeblock
SOSV Top Startups STEM robots
Raised $80m

FormLabs (3d printing)

Simbe Robotics
GetAround (car sharing) Retail inventory robot
BitMex (crypto exchange) Raised $26m

Jump Bikes / Uber (e-bikes)

Portfolio Sample Avidbots

Floor cleaning robot
Raised $26.6m
www.sosv.com/portfolio
DeepTech
Trends 2019

Memphis Meats Perfect Day Geltor Nura

CallAg Beef & Chicken CellAg Dairy Synthetic human collagen Personalized audio
Raised $20.1m Raised $61.5m Raised $23m Raised $21.9m
Defining Deep Tech

Deep Tech by any other name

Science & Engineering Hard Tech, Extreme Tech, Frontier
“Anything that’s not an app?” Tech, Future Tech…
We picked one!

Bits & Atoms

Electronics or molecules A.I. is everywhere
DeepTech
Trends 2019
Editing this report

We focused particularly
‘Deep Tech' is a broad category on categories we invest in
impossible to cover entirely
(hardware & biotech).

Some 'formerly deep tech'

consumer categories are Comments are welcome!
included.
DeepTech
Trends 2019
CONTENT
1. Overview
2. Hard Tech: Consumer
3. Hard Tech: Health
4. Hard Tech: B2B
5. Frontier Tech
6. Biotech
DeepTech
Trends 2019
01/ Overview

Some first gen pioneers Second gen more B2B and

got the arrows. B2B2C.

More funding for deep tech,

Deep Tech unicorns multiply
VC, CVC and … SoftBank
DeepTech
Trends 2019
$140B
USA 140
China 131
$105B
Europe
Unit: billion USD
84 86
$70B 78
61 60 61 64
$35B
33
26 21 24
18 16
$0B
2015 2016 2017 2018 2019H1

Source: Dow Jones Venture Source

VC winter in China Chinese Government bodies

scaled back LP commitments
*Committee on Foreign
Investment in the US.
after record years. to local VCs, but trade war
with US and the new CFIUS*

Spring soon? rules are likely to boost

domestic investment again. DeepTech
Trends 2019
 EUROPE
Oxford Sciences Innovation (UK) £300m
Deep Tech VCs High-Tech Gründerfonds (Ger/EU) €316.5m

>$5b to invest
IQ Capital (UK) $300m
Ahren Innovation Capital (UK) $250m
btov (EU) €100m
USA NordicNinja (Nordics & Baltics) €100m
Lux Capital $1.1b Karma Ventures (EU) €70m
Data Collective $725m Elaia (EU) €65m
Eclipse Ventures $500m Adara Ventures (EU) €65m
OS Fund $250m Future Positive Capital (EU) €51m
The Engine $205m Voima Ventures (Nordics & Baltics) €50m
Future Ventures $200m Vito Ventures (EU) €30m
Anzu Partners $150m Apex Ventures (EU) €10m
Bolt $80m
Root Ventures $76.7269m OTHER
Runa Capital $70m Main Sequence Ventures (Australia) $240m
Abies Ventures (Japan) $100m
GLOBAL Beyond Next Ventures (Japan) $50m
SOSV $250m Real Tech Fund (Japan) $18m
Entrepreneurs First $115m Pi Ventures (India) $31m
Hardware Club $50m
Some specialist funds for IoT, medtech, QC, etc.
Many generalists invest in deep tech. DeepTech
Chinese funds are mostly generalists. Trends 2019
New Models Helping to
Transition from research
Supporting Validate a customer need
Science Startups Identify the Minimum Fundable Milestones

Non-investing Investing
i-Corps (~100 locations in US) Entrepreneur First (7 countries)
7-weeks coaching program ‘Talent investor’
Created by Steve Blank 14 weeks program
Focus on customer development Team formation + idea validation

SOSV (global)
Deeptech Founders (France)
‘Hands-on VC’ with experts & labs
6 months part-time program
3+ months programs
Focus on customer development
Product & business development

DeepTech
Trends 2019
$2.7b of
Failures
Jibo Anki Rethink Robotics
$72.7M $182M $150M

Theranos Meta Daqri

$1.4B $73M $275M

uBiome Airware Lytro Laundroid

$109.9m $118M $216M $95M
1 in 5 Unicorns is in Deep Tech Sources: Crunchbase,
Hurun Report, SOSV Analysis

3D PRINTING AV/EV MOBILITY NEW ENERGY HEALTH TECH LIFE SCIENCES

Carbon Aiways Hellobike Envision Ankon Henlius
Desktop Metal BAIC* Mobike** Prologium iCarbonX Novogene
Formlabs Bordrin Bolt Northvolt United Imaging Sinocelltech
Byton Ola Electric Ovo Energy Alphaeon
AR/VR WuXi NextCODE
Chehejia Bird Rides ReNew Power Auris**
Magic Leap CureVac
Enovate Lime ChargePoint Butterfly Network
MindMaze IronSource
Hozon Uber ATG Microvast HeartFlow Nanopore
ROBOTICS Leapmotor Rubicon Proteus Health Roivant
DJI Nio* IOT Sila Nanotech SmileDirectClub 10X Genomics
Geek+ Singulato Nest** View NEW FOOD 23andMe
Ninebot Skywell Infinidat Beyond Meat* Ginkgo BioWorks
Ubtech WeltMeister Impossible Foods
IC & SEMI Grail
Nuro Yinglong
Human Longevity
Zipline Youxia Cambricon
Indigo Ag
Horizon Robotics
Zume Xpeng Motors
Graphcore
100 Unicorns Soon NantOmics
SPACE TECH Aurora
Samumed
Cruise** OrCam
OneWeb Tempus
Faraday Future CRYPTO MINING US 47
Rocket Lab
SpaceX Nikola Motor Bitmain China 33
Otto** Canaan
* IPO

Rivian Ebang RoW 13 ** M&A DeepTech

TuSimple BitFury Trends 2019
Zoox
SoftBank
Vision Fund
Company Type Sector Funding*
GM Cruise B2B AV tech $2.25B
View B2B Smart glass $1.8B
Nuro HAAS Delivery AV $1B
Zume HAAS Pizza robot $423M
Plenty B2B AgTech $226M
Light Consumer Cameras $186M
Nauto B2B Driving Coach $174M
Brain Corp B2B AV Tech $125M
TOTAL $6.1B*
Notes: most are B2B
* includes co-investors DeepTech
Trends 2019
 Notable Exits
Value in $b IPO M&A

25 SmileDirectClub

20 8.9
Exit Multiple

15 Beyond Meat
6 River Systems Blue River Peloton
Huami 1.46

10 0.69 0.45 0.305

1 PillPack 8.1 Auris Health
0.5

5 CTRL-Labs 1 Ring
2 3.4

BridgeBio Leap Motion

0.03
0
4 5 6 7 8 9 10 11 12 13
Time to Exit (in years) DeepTech
Trends 2019
02/ Consumer Tech Trends

From hard tech to commodities? Voice controls

(trackers, 3d printing, AR/VR) the smart home

The next wave is headed

B2B2C grows
in every direction
DeepTech
Trends 2019
Consumer
hardware *Full-year
projection

still active 131

142 140 135
128
$2.1B*

132*
Investments
Deals $2.84B
75 74
$2.04B
40
$1.65B $1.65B

$1.09B $1.2B
Only rounds < $500M. $0.68B
$0.82B
The largest 2019 round
included is $420M for Juul. Source: data via Crunchbase

2012 2013 2014 2015 2016 2017 2018 2019

DeepTech
Trends 2019
 Fitbit Huami
(US) (China)
Val: $1b Val: $650m
Trackers
10 years later:
Commoditization

Activity, Heart rate, Apple Fitbit Huami

Alexa, Spotify, …

DeepTech
Trends 2019
Home
Fitness
Killing gyms? Peloton
Connected exercise bikes
Raised $994.7m (market cap: $6.25b)

DeepTech
Trends 2019

Tonal Mirror Hydrow

Connected fitness Home fitness Connected rowing
Raised $90m Raised $40.8m Raised $32m
 Stratasys
3D Printing Val: $1.24b

The hype is long gone

Consumer 3D pPrinters
From $500 to $5,000 DeepTech
Trends 2019
 DeepTech
Trends 2019

3D Printing
B2B2C is real

SmileDirectClub
Tele-dentistry
Val: $7b

Chanel
Mascara
Smart Speakers Plug Light Nest

200m+ units
A.I.-enabled IoT boom
Ring Sonos Roomba
DeepTech
Trends 2019

Bose Garmin Lexus

Amazon Google Apple Other

60% 25% 5% 10%
In China Too Smart Speakers
Global Market Share
Q2 2019
Already in 35m Households
Unit sales 2x US in Q2 2019
14% 17%
Another A.I.-Divide?
17%
China Smart Speakers
Market Share Q2 2019 25%
Source: Canalys, Aug 2018 11%
16%

Unit Sales in Q2 2019

Baidu Alibaba Xiaomi China: 12.6 mln
39.5% 36% 24.5% US: 6.1 mln
DeepTech
Trends 2019
 Xiaomization
Amazonization
Commoditization
at breakneck speed

Amazon: Oven, Buds, Frames, Loop,

Glow, Flex, Sidewalk, Samuel L. Jackson

DeepTech
Trends 2019
 Ring Minut
Outdoor home security Sound-based
Raised $209m Camera-free security
Acquired by Amazon for $1b Raised $10.7m

Home Bells
Level Home
Security Locks
Smart home access
Raised $71m from
2.0 & Alarms
Consumer Ecovacs
(China)
Robotics >15mln units
Val: $2b
Crawlers 1 P/E ratio: 28
Androids 0

iRobot
(USA)
>25mln units
Val: $1.85b
P/E ratio: 22

DeepTech
Trends 2019
Consumer
Drones
DJI Dominates
The Market DJI
Consumer & B2B drones
Raised $105m

DJI is estimaated to control

over 70% of the market.

Several competitors like

3DR and Parrot exited
Skydio
Self-flying drone the consumer segment. DeepTech
Raised $70m Trends 2019
Other Consumer Robots
Voice assistants roadkill companion robots
STEM still growing

UBTech (China)
Jibo STEM & toy robots
$72.7m Raised $940m

Makeblock (China)
STEM robots
Anki Raised $80m
$182m
DeepTech
Trends 2019
China's A.I. Push
China is the world's largest experiment in A.I. education

A smart headband to track focus

in a school near Shanghai
Source: WSJ, Aug 2019

China’s new ‘A-B-C-D'

Artificial intelligence
Blockchain
Cloud computing
Data technology
DeepTech
Trends 2019
 VR (Consumer)
Still slow despite 2nd generation devices
Some B2B2C VR for arcades, gym
DeepTech
Trends 2019

Sony, HTC, Oculus… Black Box VR Sandbox VR (HK)

6M devices in 2019? VR gym VR arcade
Hits: Netflix? Chat? Adult? Raised $2.5m Raised $71m
VR (B2B)
Training, Touring, Therapy
Applications make sense & multiply
Training Virtual Reality Therapy
Maintenance, Physio, phobias, pain
surgery, + Outpatient tracking
language,
active shooter
simulations

Real Estate Tours

Matterport (cam + soft) Varjo (High-res VR) DeepTech
Raised $114M Raised $45.9m Trends 2019
AR: B2C new gen >$500
B2B spreads slowly
Hololens ($3,500) Focals by North
Raised $199.6M
$600+

Magic Leap ($2,295)

Raised $2.6b DeepTech
Trends 2019

Glass Enterprise Edition 2

Training, industry, health
$999+
Holograms
OOH ads & desktop solutions
Not Star Wars quite yet
DeepTech
Trends 2019

HYPERVSN Looking Glass Light Field Lab

by Kino-Mo Raised $13.8m Raised $35m
(On market) (On market, $600+) (Prototype)
 Haptics
Applications in automotive, industry,
medecine, and more?
Pixie Dust (Japan)
Various haptics & hologram tech
Raised $51.8m
Among others:
Femtosecond laser
forms plasma in mid-air
for tangible feedback

Ultrahaptics (ultrasound tech) DeepTech

Raised $85.9M, acquired Leap Motion Trends 2019
 FemTech
Towards more science
DeepTech
Trends 2019

Elvie Lilu Kegg

Breast pump Pumping bra Kegel fertility sensor
Raised $53.8m
 BabyTech
Towards more science
DeepTech
Trends 2019

Snoo RayBaby Cocoon Cam

Smart sleeper Radar breathing monitor A.I. breathing monitor
Raised $33m Raised $1.4m Raised $4m
 Nura
Personalized sound
with OTA updates
Raised $21.9m

Snoo
Buy or rent

Grover
Monthly rentals
Peloton for electronics
$58/month, 0% APR Raised €60M

Rent vs. Buy

Keeps up-to-date & updated DeepTech
Trends 2019
Pet Tech
2.0
Sensors
Vision Fi — Smart dog collars PetSafe
Raised $10m Self-cleaning litter
A.I.
PetCube Sprite Robotics
Treats robots A.I. cat toy
Raised $14m Raised $2.3m

DeepTech
Trends 2019
 DeepTech
Trends 2019

Robots for Food

Automation
Customization Cafe X
Customer Experience Robotic coffee vending machine
Raised $14.5m

Zume Spyce
Robotic pizzerias on wheels Robot cooks & restaurants
Raised $423m Raised $25.9m
Vending Oasis

Robots Paper
recycling
stations
SOSV Investments

Presso Bowl
Dry cleaning Fresh salads
in a box

DeepTech
Trends 2019
 China leads with
Unmanned micro-retail
CVS, gyms, karaoke,
Retail nail salons & more
DeepTech
Trends 2019

BingoBox SuperMonkey M-Bar O’2Nails

Automated CVS Gyms in containers Karaoke cabins Nail art printers
Raised $94.7m $53m series D Competitors abound 16y of nail tech
 Investment since 2010

Mobility
E-hailing $56.2B

Semiconductors $38.1B

AV, EV, Sharing AV sensors and

ADAS components $29.9B

Connectivity/
infotainment $20.8B

Electric vehicles
and charging $19B

Batteries $14.3B
Need for new
AV software and $13.5B
Technologies, mapping
Telematics and
Infrastructures, intelligent traffic $12.4B
Source:
Operations Back end/
cybersecurity $9B McKinsey Analysis,
CapitalIQ, Pitchbook
Policies HDMI and voice
recognition $7.4B
DeepTech
DeepTech
Trends
Trends 20192019
 Electric Vehicles boom in China
EV sales in 2018
00 769,000

486 EV
Source: CarSalesBase, 2018
00

makers
00
209,000
00

in China
46,000 35,000 31,000
0
China USA Norway Germany France

Top EV Brands in 2018

00 245,000
9 unicorns
00 165,000 150,000
$18B invested
00 105,000 since 2011
64,000
00
0 Renault
DeepTech
Trends 2019
Tesla BAIC Nissan BYD Zotye
Charge Point Gogoro PushMe
#1 EV charging network e-Scooters & charging stations Battery tech & network
Raised $532.2m Raised $480m Raised $1.3m

New infrastructure
needed to extend
uptime and compete
Charging, maintenance,
Youibot
and more
DeepTech
Vehicle inspection robots Trends 2019
03/ Health Tech Trends

Regulation Include
Digital Diagnostic Remote Monitoring
devices multiply Reimbursement

Digital Behavior changes

Therapeutics remain challenging
DeepTech
Trends 2019
 860

Deal 769

count
Record year
688
645
606
570
$14.68
473

283
$11.7B for health tech
funding
154 137

$8.3B

$7.1B

VC $6.2B
$14.6B in 2018
Funding incl. $4.1B for devices (+40%)
Q1

Surge in surgical robotics.

$2.9B
$2.8B
$2.3B
$2.0B

$1.2B Biotech IPOs grew too.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source : Startup Health Source: Silicon Valley Bank data

Successful Access
companies
improve the
following areas Cost

Now must-have for successful

fundraising and go-to-market.
Outcomes
 Blood & Beyond
Microfluidics, point-of-care solutions

DeepTech
Trends 2019

BBB
Blood test Criam Bisu
Glucose, ketones, cholesterol Blood test Urine test
Raised $21.5m Blood type & diseases For health & fitness

Elapta Biopsin Bitome

Various fluids Microbial detection Nuclear spectroscopy
Molecular testing F&B, water, pharma for molecular analysis
Targeting better outcomes
Less sick, faster recovery, zero readmission

Pinpoint
Robot-assisted insertion

Nerv
Post-surgery
abdominal leak
DeepTech
Trends 2019
detection
 Bands, watches
Sleep Tech Apple, Fitbit, etc.

Track, Trigger, Treat

TRACK Withings
Sleep tracking mat

Kokoon Zennea
EEG headphones
TRIGGER TREAT Snoring

Bravrr
Moona Eight Bruxism (teeth
‘Nest for your head' Raised $30m clinching & grinding) DeepTech
Trends 2019
 Digital Therapeutics
Replacing pills
and lab tests?
Aire by FoodMarble
Digestive health

Caura Sana Health DeepTech

Trends 2019
Lactate & glucose tracking Chronic pain relief
 Mental Health HabitAware
Hair pulling, nail biting, etc.
Digital Therapies Top 10 in TIME 2018
MSRP: $149
machine learning
and biofeedback
DeepTech
Trends 2019

Feel by Sentio
Emotions sensor
for anxiety, depression, etc.
Raised $6.3m (Clinical trials)
Flow Neuroscience
Depression treatment
Lief Therapeutics FDA approved
ECG smart patch tDCS stimulation
for stress management & virtual therapy app
$99/month £399
Rehab & x-Diversity
For independent living
and supporting physical
and mental diversity MindMaze (Switzerland)
VR treatment for neurorehabilitation
Raised $110.6m

DeepTech
Trends 2019

Wandercraft Labrador Systems

Exoskeleton wheelchair for the disabled Assistive robot for independent living
Raised $23.4m Raised $2m
An Important Challenge
for Health is Behavior

Understanding impact of Avoiding mental triggers,

food, sleep, environment… building new habits.

DeepTech
Trends 2019
 Neural Interfaces
Tracking, Stimulating,
Connecting Mindset
EEG headphones tracking focus
DeepTech
Trends 2019

Neuralink (Elon Musk) CTRL-Labs

Brain-machine interfaces Neural monitoring
Raised $158m Acquired by Facebook for $500m+
04/ Enterprise & Industry Trends

Boom in Transportation, Agriculture, Manufacturing,

Logistics and Retail Construction, Mining are next

Labor crisis in China innovates

numerous sectors on all fronts
DeepTech
Trends 2019
Amazon
Automates everything.
‘Dark warehouses’soon?
Kiva (acq) Canvas (acq)
>200,000 units Autonomous carts
DeepTech
Trends 2019

Balyo (IPO) Prime Air Last-mile delivery Blimp Mothership

Partnership Filed with FAA Pilots Fake!
Fear of Amazon
Pushes competitors
toward turn-key and
6 River Systems
flexible solutions Acquired by Shopify for $450m
Raised $46m
DeepTech
Trends 2019

Exotec
Fetch Robotics High density warehousing solution
Raised $94m Raised $21.2m
Construction
Multi-trillion-dollar markets
From design to demolition
 Architecture
Engineering
‘AEC’ Tech Construction
+ Facilities Management

Brick & Mortar Ventures COBOD

$97m fund for the built world ‘Building on demand’
Raised $2.5m
 Smart tools &
automation
for custom
Rebartek construction
Automated rebar cage prefabrication

Mechasys ShapeMeasure
Floor plan projection Precision measuring & cutting
Augmenting
workers ProGlove
Wearable barcode scanner
Raised $49.1m
DeepTech
Trends 2019

Japet
Nuada Soft exoskeleton for
Power glove back pain prevention
for tireless grip Raised $1.7m
 Operations
Restoration
Demolition

Wastack
Landfill operations
Bird control, 3d mapping Craft Robotics
fire, methane leaks Mortar-raking robot
 Plecobot
High-rise windows
Cleaning
Avidbots
Floor cleaning
Raised $26.6m

DeepTech
Trends 2019

Clean Robotics ViaBot Somatic

Trash-sorting robot Pavement Toilets
Industry
2.5 million robots DeepTech
Trends 2019

Robots Installed in 2018 Robot Density in 2018

(‘000 units) (per 10,000 workers)
160
China 140 2x in 3 years
154 +422,000 in 2018
120 Japan 327
1/3 in China
80 154 US 217
40 55 Korea 774
40
40 38 27 Source : Germany 328
0 International
Federation of
China Japan US Korea Germany Robotics 0 200 400 600 800
 Robots get cheaper but also safer
and easier to set up and re-tool

220 Cost of automation Collaborative robotics market

200
180
Still only 3% of new installations
160 Labor costs
140
(OPEX)
120
100
80 CAGR
60
Robot prices
(CAPEX) 50.31%
40
$710M $12,303M
1990 1995 2000 2005 2010
2018 2025 DeepTech
Source: Economist Intelligence Unit; IMB; Institut für Arbeitsmarkt - und Berunfsforschung; Trends 2019
International Robot Federation, US Social Security Data; McKinsey Analysis Source : Markets and Markets - Collaborative Robot Market
 DeepTech

Demand for
Trends 2019

flexible solutions
Development speed
Integration time
Youibot
Mobile applications
Ease of use
in industrial settings Safety

Elephant Robotics Veo Robotics

Collaborative robots Vision, 3D sensing & AI
with visual interface Raised $28m
Zero downtime
DeepTech
Trends 2019

Zero waste AiSight

Machine sensors

"5 steps
of machine epiphany"
Reactive SmarTex
Preventive Fabric fault detection
Predictive
Optimized Health
Optimized Performance
Unspun
Source: https://www.augury.com/ 3D-woven custom-fit jeans
 For deliveries or surveying
Drones Longer range, heavier cargo
go B2B Agriculture, Oil & Gas, Mining,
Surveying, Defense, etc.

DeepTech
Trends 2019

Delair (France) Zipline Dedrone

Industry solutions Long-range drones (100 miles) Drone detection technology
Acquired Airware high-value deliveries
Raised $14.5m Raised $233m Raised $43.2m
Drones
Novel
applications

Biocarbon Engineering
Tree-planting drone
300 pods = 1ha in 18min
Raised $2.5m

Dropcopter
Pollination drones DeepTech
Trends 2019
 DeepTech

Greenhouse
Trends 2019

45 billion tons / year (CO2 equivalent)

7.5 billion people
Gases = 6 tons / year / person (~20kg / day)

GHG ‘Sinful Seven’ GHG Sources GHG by Country

Source: EPA, 2018 Source: EPA, 2018 Source: World Resources Institute, 2017
6% 15
Gaz Full name Quantity GWP* 14%
China 99
35%

GHG Emissions (MtCO2e)

CO2 Carbon dioxide 75% 1
CH4 Methane 15% 30 10

N2O Nitrous oxide 5% 300

21% 20
20 USA
CFCs ChloroFluoroCarbons 5
HFCs HydroFluoroCarbons Russia 88 EU India
PFCs PerFluoroCarbons 5% 1,000+ 24% 2
15 Japan
SF6 Sulphur HexaFluoride Energy & Heat Production & Processing 11 5
Brazil
NF3 Nitrogen TriFluoride Agriculture, Forestry, etc. 0
Industry 0 500 1,000 1,500
Transportation
*GWP = Global Warming Potential Population (mln)
Buildings & housing
 Bloom Energy
Solid oxide fuel cells
 VoltStorage
Val: $386m Vanadium redox flow
Raised $825.7m Residential fuel cells & micro-grid
DeepTech
Trends 2019

Energy
Storage &
management Energy Vault
Gravity storage
Raised $110m
 Geo
Enginering
Carbon Capture Technologies
Carbon Engineering
Greenhouse Gas Removal (GGR)
CO2-capture & synthetic fuel tech
Biochar (charcoal from biomass) Raised $107.4m

Cool Planet Energy Systems Novo Nutrients

Biochar-based agricultural products Fish feed from DeepTech
Raised $235.7m CO2-capturing bacteria
Trends 2019
Breakthrough Coalition of 18 corporations & 30 billionaires
Research & Invest in New Energy Solutions
Energy DeepTech
Trends 2019
to reduce GHG Emissions

Breakthrough Energy Ventures (BEV)

$1b fund led by Bill Gates
Investing in startups with the potential
to reduce GHG emissions
by at least 500mln tons / year.

Electricity Transportation Agriculture Manufacturing Manufacturing

Reliable EV batteries Lower emissions Construction, GHG in Construction,
Affordable New fuels New proteins data centers, paper, etc. data centers, paper, etc.
Zero-carbon Light materials Reduce waste Recycling solutions Recycling solutions
Deforestation CO₂ Extraction CO₂ Extraction
AgTech

Soil sensors

Automation for harvest

- irrigation
- weeding
- harvesting

Post-harvest
Food safety
Source: AgTech Landscape 2019 DeepTech
by Seana Day , BetterFoodVentures.com Trends 2019
 Precision Sensors & robots
agriculture for better outputs

Blue River Technology Forward Robotics

A.I.-based Long-range
precision weeding autonomous VTOL
Acq. by John Deere ($305m) drones

Tensorfield Nordetect
A.I.-based
Portable DeepTech
precision weeding robots
NPK soil testing Trends 2019
 Internet of …
Bees, cows,
sheep & more Apix
Automated beehive
maintenance
DeepTech
Trends 2019

EIO Diagnostics Smart Shepherd

Inflammation diagnostic Pedigree tracker
High-Tech Breeding

Experiment with
face recognition
to track:
• behavior
• eating
patterns
• overall health
DeepTech
Trends 2019
 China AgTech
Breeding half the world’s 1 billion pigs with A.I.

Animal tracking Face Geese have

small faces
goes high-tech recognition and eyes
IR on the side
& motion
Tattoo
scan
RFID

China’s Tech Giants Challenges

Into Breeding (1) Siblings (3) Facing camera
Netease, Alibaba, JD… (2) Fast change (4) Dirt
DeepTech
Trends 2019
 5G
High Bandwidth
Innovation
Low Latency
Enabler Enhanced Security DeepTech
Trends 2019

Realistic 4K VR Critical remote control 'Everything to Everything’

Requires 1Gbps+ Requires low latency Connecting nachines,
5G will reach 1-20Gbps 5G will reach 1ms sensors, vehicles & more
05/ Frontier Tech

Aerospace making
Long timeframes (5y+)
progress but still costly
limits VC activity

Quantum, Fusion & more What will

for specialists Elon Musk do?
DeepTech
Trends 2019
Flying Cars
Startups & corporates Boeing
race for safety, autonomy,
launchpads, recharge
and … permits.
Airbus targets Paris in 2024 AeroMobil (Slovakia)
Uber Air targets Melbourne in 2023 Raised €9m
DeepTech
Trends 2019

Volocopter (Germany)
Lilium (Germany) Ehang (China) Raised $89.7m
Raised $101.4m Raised $52m Dubai, Singapore, Germany
Space Tech
DeepTech
Trends 2019

Viable: launch, sensing, telecom

Not quite: mining, debris, tourism…
< 5,000 satellites orbit the Earth today
~ 35 companies work on launchers

OneWeb SpaceX Starlink Rocket Lab

6 in LEO (target: 2,000) 60 in LEO (target: 12,000) Small sats launchers
Raised $3b Estimated cost: $10b Raised $215m
Hyperloops
25 projects
10+ test tracks
Costs & safety concerns remain The Boring Company
Raised $233m

DeepTech
Trends 2019

Virgin Hyperloop One Hyperloop Transportation Technologies

Pune-Mumbai 120km loop by 2021? 10km pilot plant in Guizhou, China
Raised $295m Raised $108m (unconfirmed)
'Out There'
Commercially viable
within 10 years? DeepTech
Trends 2019

Boom Supersonic
Raised $141m

Quantum Computers Commonwealth

IBM, Google, etc. Fusion Systems
Up to 160-qubit MIT startup
D-Wave Raised $204.7m Raised $115m
Elon Elon Musk projects target either established
or new markets. Several leverage public
Musk funding and subsidies. DeepTech
Trends 2019

SpaceX (+ Starlink) $33.3b val.

Tesla $46.7b cap.
SolarCity (acq. by Tesla) $2.6b
The Boring Company $920m val.
Neuralink $158m funding
Future of Life Institute (non-profit) Think Tank
OpenAI (non-profit) $1b funding
06/ Synthetic Biology

Building blocks are in place. Applications in food,

Lab tech & cloud speed all up. health, pharma, industry…

Proteins are the ultimate In vivo genetic therapies

nanobots Longevity research & more
DeepTech
Trends 2019
 DeepTech
Trends 2019

DeepTech
Trends 2019
Cost of DNA sequencing fell
Cost per
raw megabase
of DNA sequence

DeepTech
Trends 2019
Building Blocks

250,000 antibodies 350,000 proteins

ready to order ‘on-the-shelf'

20,000 known genes Low-cost lab robots

scientists can look up & outsourced lab work
DeepTech
Trends 2019
Picks &
Shovels
DeepTech
Trends 2019 OpenTrons
Lab automation
Raised $10m

Stämm
Bioreactor for Digi.Bio
Gingko Bioworks continuous Programmable
Custom organisms large-scale micro-fluidics
Raised $719m production platform
 Personal From ancestry
Genetics to clinical grade
DeepTech
Trends 2019

Color Genomics  Chronomics

23andMe
Genome testing for clinical-grade Epigenetic testing.
Genome research for ancestry,
hereditary cancer, hearth health, Biological age, smoke exposure,
genealogy, and inherited traits.
medication response genes ($250) metabolic state.
Raised $786m
Raised $112m Raised $1.4m
Food
Plants
Algaes
Fungi
Cell-Ag

Sustainable
Functional
Curative

DeepTech
Trends 2019
Looking for Sustainable Proteins

Animal Alternative Beef/mutton 1.02

Protein Protein Pork 0.13

Issues Issues Fresh Produce 0.1

Poultry 0.08
Land Cost Eggs 0.05
Water Taste
Suffering Texture Dairy 0.04
Antibiotics Culture medium (FBS…) Wheat 0.04
Antibiotic resistance Acceptance
Rice 0.02

Maize 0.01
Land use per gram
Pulses 0.01
of protein in m2 DeepTech
Source: Clark & Tilman, 2017 Trends 2019
CellAg Startups Funding
Source: Elliot Swartz @elliotswartz / Good Food Institute, gfi.org

DeepTech
Trends 2019
 DeepTech
Trends 2019

Food
Meat
from: Beyond Meat Memphis Meats
Plant-based meat Beef and chicken
IPO, $7.6b market cap Raised $20.1m
Plants
Stem cells

New Age Meats

Integriculture (Japan) ‘Hybrid' sausages
Plant-based protein
Cultured foie gras + Lab-grown pork fat
Raised $2.75m
DeepTech
Trends 2019
Raised $3.5m
Food
Seafood
from: Good Catch Wild Type
Plant/algae-based tuna & more Cultured seafood
Raised $18.7m Raised $16m
Plants
Algaes
Stem cells

New Wave Foods Finless Foods

DeepTech Plant/algae based shrimp Fish from stem cells
Trends 2019
Raised funding from Tyson Raised $3.5m
Food
CellAg
‘Sweets'

Perfect Day Clara Foods

DeepTech
Dairy (on market) Egg whites
Trends 2019
Raised $61.5m Raised $16.8m
Food
Other
Products NotCo Glyph by Endless West
Plant-based mayo Molecular Whiskey
Raised $30m Raised $12.7m

New Culture
Perfect Day Clara Foods
Plant-based cheese with cultured casein
Dairy (on market) Egg whites
Raised $30m
DeepTech
Trends 2019 Raised $61.5m Raised $16.8m
Food
For Animals
Ynsect (France)
Insect-based feed for aquaculture and pet nutrition
Raised $172.3m

Because Animals
Cultured meat and supplements for pets
DeepTech
Trends 2019
 DeepTech
Trends 2019

Food After 10 days

Waste Uncoated Coated

Avoiding & Wasteless Cambridge Crops

Upcycling Dynamic pricing RFID
Raised $4.2m
(edible) Food coating (MIT)
Raised $4m
Waste

Hexafly
Insect farming & upcycle of food Electro-Active Technologies
waste into Aqua feed, Chitin & Plant Upcycling food waste info hydrogen
Nutrition. Raised $4m using microbes & electro-chemistry
 Ag Biotech
Soil health,
Plant health Indigo
Pollination Plant microbiome solutions for crop nutritionDeepTech
Raised $609m Trends2019

Biome Makers BeeFlow

Designer microbes using DNA sequencing & A.I. Precision bee nutrition for enhanced pollination
Raised $6.4m Raised $3.5m
 Human microbiome Gut-brain connection
Microbiome 2 kg of bacterias
1,000+ species
Emerging therapies
e.g. allergies, autism)
& Gut Health 3 mln genes
(150x humans)

DeepTech
Trends 2019

Sun Genomics
Personalized probiotics
Raised $3m

Kaleido BioSciences Eligio Biosciences BiomeSense

Microbiome solutions Targeted bio-therapeutic Microbiome testing & storage
Raised $165.5m Raised $22.2m Raised $2m
 ZOA™
Cultured
Leather

Bio-
materials Modern meadow MycoWorks
Biomaterials & ingredients Mushroom leather
Raised $53.5m Raised series A
DeepTech
Trends 2019

Bolt Threads AlgiKnit

Spider silk & more Seaweed yarn Tinctorium
Raised $213m Raised $2.2m Non-chemical indigo dye
Bio-
materials Geltor
Synthetic human collagen
For eye cream, etc.
Raised $23m

Lingrove
‘Wood without trees’’
Moldable, CO2-negative composite of flax fiber & resins
Deep
Tech
For
Health
 Biomarkers
For pre-symptom diagnostic
and predictive drug design Grail (Illumina spin-off)
Liquid biopsy for early stage cancer testing
Raised $1.6b

DeepTech
Trends 2019

Jungla (acquired for by Invitae for $65m) sRNAlytics

A.I.-based clinical interpretation tool of genetic A.I.-based sequencing for small RNA markers
variant. Raised $2.8m Raised $2.5m
 DeepTech

New
Trends 2019

Startups Challenge Easier due diligence

Faster time-to-market
Traditional Pharma
Pharma Economics
Lower capital needs
Lower downstream dilution

COMPANY FOCUS COST ADVANTAGE

Low-cost material and

Convalesce Stem cell therapy for Parkinson's disease & more
fast-track designation.

Computational biology with

Gavilan Biodesign Resistance-resilient (‘4D’) drug design
‘wetware-in-the-loop’.

Leveraging existing data for

Lupa Bio Anti-inflammatory therapeutics
fast-track FDA process.

Combining automation & A.I.

Recursion Pharmaceuticals Treatments discovery
with experimental biology,

Improves gene therapies

Serenity Bioworks Immune-tolerant gene therapy platform
by dampening immune reactions.
 Company Focus Financials

Roivant Roivant
Axovant
Holding
Neurology
$1.9b funding
$1.8b IPO

An unusual biopharma firm Myovant Endocrine diseases $880m IPO

focused on completing the Urovant Urology $450m IPO

development of promising Dermavant Dermatology IPO postponed

late-stage drug candidates. Immunovant Autoimmune diseases RTO plans

Enzyvant Rare diseases n.a.
Datavant Healthcare data analytics $85m funding
Sinovant China/Asian markets n.a.
• Founded in 2014 in Switzerland
Metavant Cardiometabolic diseases n.a.
• Most funded biotech company
• Inspired by NantWorks strategy Genevant RNA-based therapeutics n.a.

• Already IPOed 3 subsidiaries Respivant Respiratory diseases n.a.

• Japan’s Sumitomo Dainippon Pharma Aruvant Hematology n.a.

will pay $3b for various assets.. Altavant Pulmonary arterial hypertension n.a.
DeepTech
Future Vants Within & beyond pharma n.a. Trends 2019
Cell & Gene
Therapy
Getting past, modulating or DNA Lite
harnessing the immune system Gastrointestinal gene therapy
Raised $1.5m

Kytopen Serenity Bioworks

Non-viral delivery of molecules into hard-to- Immune-tolerant gene therapy platform
transfect immune cells
Raised $3.6m
 The platform can search through

Other Biotech
100,000 trillion molecular
compound structures per day

Targeting the ‘undruggable’, Gavilan Biodesign

and other technologies Resistance-resilient (‘4D’) drug design using
computational biology w/ ‘wetware-in-the-loop’.

SyntheX Diadem Biotherapeutics

Gene therapy enabler. Screening tech for protein- Regenerative biologics, offering easier
protein interaction, including cancer pathways. manufacturing and longer shelf life.
Raised $6.4m
 Prellis Biologics

Frontier
3D-printing of vascularized organoids
Raised $10.6m

Biotech
Storing data in DNA
Bio-printing organoids
Catalog
DNA-based
data storage
Raised $9.3m

Neurons grown
on vascular scaffolds

DeepTech
Trends 2019
Other Exciting Domains
DeepTech
Trends 2019

Live cell therapies Pre-symptom

e.g. precision cancer targeting disease detection

Longevity Therapies
Organoids
Inflammation, Cells,
from research to implants
Metabolism, Mitochondria
Credits
Editor Contributors Ji Ke Further thanks
Benjamin Joffe Anant Pathak Jo-An Ho SOSV portfolio startups
Bill Liao Kate Whitcomb and all the participants
Design Cyril Ebersweiler Parikshit Sharma in the global deep tech
Vitaly Vyazovsky Duncan Turner Peter Bodenheimer ecosystem.
Lisa Shcheglova Garrett Winther Po Bronson

Additional Resources
Podcasts Designing Science (Biotech), China Startup Pulse (China/Asia)
YouTube SOSV & Program-specific channels
Medium SOSV & Program-specific blogs
Reports Hardware Trends
Articles TechCrunch, VentureBeat
DeepTech
Trends 2019
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Trends 2019
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Questions & Comments DeepTech

benjamin.joffe@sosv.com Trends 2019