These industries lead the way
After reaching the height, hit an all-time high in 2021, but startup exits hit an all-time low over the past 12 months as interest rates soared, access to cheap capital decreased, and cash opportunities dried up. . Total exits for U.S. companies and venture capital investors in the first half of 2023 were the lowest in nearly 15 years. According to PitchBook data.
However, in Q3 we saw some light at the end of the tunnel with PE/VC reaching the exit in August. Highest price in the last 22 months. Perhaps surprisingly, deep tech companies, which I define as companies leveraging new technologies, or engineering-driven innovation, contributed to the initial slow recovery of companies new to the field. are doing.See Crunch Base Billion dollar startup exits By 2023, a quarter of the 16 exiting unicorns will be deep tech companies. This comes as no surprise to our team, given the huge number of deep tech unicorns that have been born over the past few years. In 2021, we compiled a list A study of deep tech companies valued at over $1 billion found that 120 deep tech unicorns have already generated nearly $5 trillion in value.
Many earth-changing deep technology solutions are being commercialized, and the number and scale of successful exits continues to increase.
However, for those who do not closely follow the deep tech space on a daily basis, it is likely that they still believe that it is impossible to build a deep tech unicorn and that there are only a handful of opportunities to exit deep tech each year. there is. But the truth is, deep technology innovation is no longer science fiction or research experiment. Many earth-changing deep technology solutions are being commercialized, and the number and scale of successful exits continues to increase. In that sense, the exit of deep tech is no longer science fiction. To understand this better, our team recently analyzed the world’s deep technology withdrawals over the past decade (2013-2022) in what we believe is an industry first. As a result, the following was revealed.
Deep tech unicorn exits increase by 550% from 2018 to 2022
Source: techcrunch.com
