TASAM | What is “Deeptech”, How is it Funded, and Why Investor Attra...

Introduction

Development of domestic technology is an important feature for technological sovereignty. This is particularly the case for Deeptech.

Deeptech refers to innovations rooted in breakthrough science and engineering — including quantum computing, advanced materials, robotics, artificial intelligence, synthetic biology, and clean-energy technologies.

Unlike purely digital startups, deeptech ventures demand long-term Research and Development (R&D) investment, laboratory infrastructure, and multi-disciplinary expertise. They also offer the highest transformative potential for economic growth, industrial resilience, and technological sovereignty. Technological Sovereignty is often confused to be a form of Autarky, where everything is produced domestically. Technological Sovereignty for our case means the ability to manufacture key technology domestically, either entirely nationally or through cooperation with key partners (as a cooperative partnership).

Thus in this manuscript, we will try to analyze key questions such as what is deeptech and why securing funding for deeptech is important for long-term technological sovereignty and development.

1. Understanding Deeptech and Its Funding Models

Deeptech ventures are distinct from typical tech startups, because they are focusing on science-driven innovation that often originates in universities and special research centers.
Their funding model typically blends:

- Public grants and national R&D missions to min8mize-risk at the early stages of the research.

- Blended finance (mixing grants and equity) for prototype and pilot stages.

- Corporate and strategic investors who provide market validation and technical know-how.

- Sovereign and institutional investors for later-stage scale-up (e.g., semiconductor fabs, bio-manufacturing, battery plants).

This funding architecture bridges the long gap (i.e. “valley of death“) between research laboratory discovery and commercial deployment. Given this long gap of research to market, funding is necessary and requires an ability to steadily attract investment for the long term.

2. Importance of Attracting Investors

Considering the long-term nature of Deeptech, Attracting investors to deeptech is strategic, not just financial:

1. Capital intensity & time horizon — quantum, biotech, and climate hardware need multi-year funding cycles.

2. Dual-use technologies — many deeptech applications strengthen both civilian and defense capabilities.

3. National resilience — investor depth enables domestic production and reduces dependency on foreign supply chains.

4. Ecosystem learning — investors contribute business acumen and regulatory experience that elevate the entire innovation ecosystem.

Hence, a lot of the investments are strategic investments and risks are calculated as such by the investors.

3. India: Momentum in Quantum, Manufacturing, and Agrochemicals

India’s deeptech ecosystem is on a rapid upward trajectory:

• Funding surge. According to The Economic Times (Sept 2025), deeptech funding is projected to exceed USD 5 billion within five years, reflecting growing venture capital participation and policy alignment. Source

• Quantum-based drug discovery. The Print (Sept 2025) reports that Bengaluru-based QpiAI has built India’s first commercial quantum computer, focusing on molecular modeling for antimicrobial drug development — an example of science-driven innovation demanding long-term, patient capital. Source

• Industrial deeptech partnerships. Reuters (Sept 2025) highlights Japan’s Mitsui OSK Lines exploring shipbuilding partnerships in India, demonstrating how advanced materials, automation, and marine engineering collaborations can scale industrial deeptech. Source

• Science-based exports. Business Standard (Sept 2025) notes that India became the world’s third-largest agrochemical exporter (≈ USD 3.3 billion), showing how applied chemistry and process engineering translate research into exportable value. Source

Takeaway: India’s deeptech sector now extends from quantum and aerospace to industrial chemistry and agri-tech, yet it still needs specialized investors capable of managing high-risk, high-impact science ventures.

4. Türkiye: Building a Deeptech Bridge from R&D to Industry

Türkiye is laying solid institutional foundations for deeptech growth:

TÜBİTAK BİGG Entrepreneurship and Investment Programs support startups from idea to market by combining early-stage grants with seed equity.

Superconducting chip and quantum programs show state commitment to frontier technologies.

QuanT — Türkiye’s first quantum computer, developed at TOBB ETÜ, serves as a national demonstrator that attracts both domestic and foreign investment interest.

These initiatives mark Türkiye’s transition from basic R&D support to investment-ready innovation pipelines, yet sustained deeptech growth will depend on patient industrial capital and cross-sector partnerships (energy, defense, chemicals, machinery).

5. Global Context and EU Example

The European Innovation Council (EIC) Accelerator exemplifies how blended finance can accelerate deeptech by providing up to €2.5 million in grants plus equity.

This de-risking mechanism catalyzes private investors to co-fund pilot lines and first-of-a-kind demonstrators.

Türkiye’s startups increasingly apply to EIC calls, using them to access Europe’s deeptech investment ecosystem and expertise.

6. Policy Recommendations for Investor Attraction

Signal national demand. Government procurement in defense, energy, and health can validate early markets.

Blend finance. Pair public R&D with equity co-investment at mid-TRL stages.

Create domain-specific VC/CVC funds (e.g., quantum, biotech, maritime, energy tech).

Build shared pilot infrastructure (micro-fabs, bio-foundries, quantum testbeds).

Establish regulatory sandboxes to shorten approval cycles for clinical, chemical, and environmental innovations.

Foster international co-development with Japan, India, and EU partners to embed Turkish and regional startups in global supply chains.

7. Conclusion

Deeptech is not a niche — it is the foundation of national technological sovereignty.

India’s momentum illustrates how policy consistency, investor depth, and industrial partnerships can transform research into export powerhouses.

Türkiye’s structured programs represent the right starting point; the next phase requires patient capital and global collaboration to bring prototypes to industrial scale.
By treating investor attraction as a strategic national capability, countries convert scientific excellence into long-term economic resilience and competitiveness.

References and Endnotes