What Increased Deep Tech Investment Means for Business in Australia

Singularity University recently announced a program boosting deep tech investment in the Asia-Pacific. The Silicon Valley B-Corp corporation that offers educational programs and a business incubator aims to increase startup capital. Singularity University’s Global Startup Program is set to launch with Jeremy Liddle, co-founder of venture capital firm Capital Pitch, spearheading the move.

The significant move opens up Australia and South-East Asia to one of the world’s biggest venture capital accelerators. Jeremy Liddle announced Singularity University’s launch in Australia is an opportunity for companies to access capital to fund ‘deep technology.’

We explore what this boost in investment means for the Australian business environment, and what this means for opportunistic entrepreneurs in setting up operations in Australia.

Tech Investment in Australia – What exactly is deep tech?

The different disciplines of deep tech
Deep tech identifies five main disciplines: semiconductor, biotech, medtech, digital health, and clean tech.

Deep tech is technology that involves substantial engineering and scientific advances. Deep tech requires long lead times and significant investment but has a major economic and social impact. The fact that the organization aiming to boost investment in this field resides in Silicon Valley comes as no surprise. The area has been a leader in regard to deep technology innovation. These innovations have nurtured billion-dollar enterprises in the Silicon Valley area.

Deep tech identifies five different main disciplines. These learnings are:

  •      Semiconductor. This is a material that has a conductivity between conductors and non-conductors. These can be pure elements or compounds.
  •      Biotech. Harnesses cellular and biomolecular processes to develop technologies and products to improve our lives and the health of the planet.
  •      Medtech. Any technology that is used to save lives or help any individual that is suffering from a wide range of conditions.
  •      Digital health. The use of technology to improve individuals’ health and wellness.
  •      Cleantech. Any process, product, or service that reduces negative environmental impacts through significant energy efficiency improvements.

Deep tech and business

The development of Silicon Valley is a perfect example of the money deep technology industries can earn. However, the huge returns come at a cost. eep technology often requires a large starting capital. This large starting capital is mostly needed for the huge amount of research that scientific advances require.

Investment into the research element of deep tech almost always provides substantial returns. Successful scientific advances allow companies to grow into billion-dollar enterprises by using patents and commercializing inventions.

Where does Australia come in?

As stated above, the new program will open up Australia to one of the world’s biggest venture capital accelerators. This not only means Australian startups will be offered to fund from Singularity University, but it also means other investors are easier enticed to the market. Starting up the program can be seen as a show of faith in Australian deep tech capabilities. This show of faith will boost investors’ confidence in investing themselves as well. A boost in funding this significant will enable Australian deep technology developments to reach new heights.

Besides the initiative by the Silicon Valley powerhouse, the Australian government has promised to fund deep technology as well. Though Jeremy Liddle expressed a desire for the amount to be higher, it shows the positive intentions of the government. The combination of private and public funding into the sector could sustain a healthy and lucrative business environment. By supporting startups, the market will stay active and new technological advances can be expected.

Improving Australian business

Australian deep technology developments will mean scientific advances in markets or products that are of interest to the Australian economy. Moreover, this potential in scientific developments will draw more foreign investment towards Australia. This will provide growth and job creation opportunities in the sectors where this investment lands.

Australia's financial industry is well-placed to facilitate major deep tech developments.
Australia’s formidable financial market is well-placed to facilitate major deep tech developments.

Australia is home to five globally-successful industries. Across food, education, tourism, financial services, and natural resources. Australia is the world’s largest exporter of natural resources. Resources such as iron, gold, uranium and liquefied natural gas are all exported from the country. However, it is working towards more sustainable development and is investing billions of dollars on green energy. This is to steer the country away from its current reliance on coal and natural gases.

When comparing these globally-successful industries to the five main learnings of deep tech, it becomes clear Australia could greatly benefit from an increase in deep tech research. For example, the investments in green energy could be supported by complementary cleantech scientific research discoveries.

Furthermore, deep tech is seeing new developments in financial technology learnings. Australia is home to a formidable financial market. It offers a significant pool of managed fund assets for businesses both in Australia and around the world. This environment is well-placed to facilitate major deep tech developments.

Australia’s FinTech landscape is also promising. Fintech investment has increased from USD$53 million in 2012 to an incredible USD$675m in 2016. Also, success stories from startups Brighte, Lend2Fund, Pennybox, Redcat, and SixPark are becoming all the more common in the country. The developments within the deep tech sector and the Australian financial sector could see perfect collaborations in the future. This all would lead to an improvement of Australian business in general.

Work with the experts to get started

With the recent developments within the deep tech world, Australia is set to profit. Its economy will see a boost in advanced technology learning startups. Profits will cascade down to a range of sectors that your company could thrive in.

If you’re looking to enter the Australian market, reach out to the local experts at Biz Latin Hub. Our team expects a bright future ahead for Australia’s economy and offers a range of market entry and back-office services to support your commercial endeavors. The country is open for those international investors on the lookout for new opportunities, and now is the right time to get started.

Reach our team of experts today via email here for personalized support on your journey

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.

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