Australia has always been a hub for scientific breakthroughs, contributing some of the world’s most game-changing technologies - from Wi-Fi and Google Maps to the electronic pacemaker and the first-ever anti-cancer vaccine, these innovations are part of Australia’s rich “deep tech” legacy.

In the past decade, Australia's venture ecosystem has evolved dramatically, we’ve witnessed stronger investment, increased government support and a growing awareness of the need for manufacturing sovereignty. What we’re seeing now is the result of years of relentless effort toward innovation and to keep moving forward, we need to believe that technology can and will be the driving force behind Australia's future economy.

Personally, after spending the past six years in Australia and recently becoming a proud citizen, I’ve had the chance to witness the country’s incredible progress up close, especially when viewed through the lens of someone coming from a more established ecosystem like Europe - seeing how things are evolving here and watching the pieces fall into place from a perspective of contrast has been nothing short of exciting. It feels like something it might not always be crystal clear, but make no mistake - we’re on the right track, it really feels like something special is happening and the full potential of this ecosystem is yet to be realised.

The ~A$167 billion tech sector is already playing a pivotal role, now standing as the third-largest contributor to GDP. Australia also has attractive tax incentives for companies conducting eligible R&D activities, encouraging businesses to grow, innovate and deliver economic benefits to the nation.

The Australian Economic Accelerator is a major push to turn cutting-edge research into real-world ventures. It fast-tracks innovation with funding, structure, and support. It’s a clear sign that Australia is serious about commercialising its deep tech potential.

In 2023, the government launched the $15Bn National Reconstruction Fund (NRF), designed to diversify and transform Australia’s industries, ensuring future prosperity and driving sustainable growth. This initiative targets key sectors like renewable energy, low-emission technologies, medical science, and enabling capabilities, with the goal of boosting Australia's strengths.

But as we know the deep tech ecosystem it’s a complex, interconnected web involving universities, government policies, industry leaders, and venture capitalists. Imagine it as a new kind of solar system with deep tech founders or start-ups at the centre, surrounded by a constellation of planets, stars and support systems, each one of them in its unique orbit and also being influenced by its own satellites pulling them in different directions. The key to success lies in aligning all these forces to help founders transform groundbreaking innovations into thriving companies… And as you picture it, cracking the code to that gravitational pull is anything but easy!

Despite the progress we’ve made, one major hurdle still remains: Australia continues to struggle with fully commercialising many of its world-class inventions. The problem isn’t a lack of talent or ideas - it’s the lack of alignment across different parts of the ecosystem. Too often, brilliant Australian innovations are developed overseas with others reaping the benefits. One of the main reasons? Lack of consistency in support, a weak collaboration between our business and research sectors and the size of the domestic market. These fundamentally structural issues can turn down scientists, who often weigh the high costs of commercialisation against uncertain rewards.

Not Enough Deep Tech Investors? 

It’s often said that there’s a shortage of capital for deep tech. While it’s true that there are fewer funds dedicated solely to deep tech, we believe the landscape is changing. We regularly co-invest with funds across various verticals within our challenge areas, even if they don’t invest across the six of them, and the appetite for innovative models is steadily growing. As deep tech investors, one of our key responsibilities is to educate other investors on how to approach and succeed in this space.

Early investments in SpaceX, Benchling, Horizon Robotics by various VCs and angels have shown huge returns and not just from an investment return perspective but for society as a whole. And don’t get me wrong, while it’s easy to romanticise the idea of investing in deep tech and the world-changing possibilities, our primary job as investors is to deliver meaningful returns on the capital we’ve been entrusted with, doing it successfully it’s what will allow us to continue pushing other innovations, and on this topic, many of them might not be a fit for VC - but that’s a topic we’ll discuss further down the line.

Some VCs shy away from deep tech due to its complexity and longer time to exit, favoring sectors where risks are easier to assess—or simply chasing the latest hype cycle. But deep tech plays a critical role in solving the foundational challenges of tomorrow. Take AI as an example: while the field is booming, it faces major roadblocks—current architectures aren't built to support the immense energy demands of future AI systems. This is where deep tech steps in, asking bold questions: How do we get ahead of this? Can we solve it through software, hardware, or a combination of both? And most importantly, how do we actually build it?

We’re here because we believe in the power of deep tech to drive real change. We want more people to pursue the commercialisation of their innovations, not just to seek financial success but to make a meaningful impact. We know the future of manufacturing, energy efficiency, and sustainable growth depends on breakthroughs that can only come from deep tech.

The Role of Universities and Early Challenges

Universities are critical in the early stages of deep tech. They provide fellowships, labs, mentors, and access to intellectual property. However, the rigid processes designed for life sciences often don’t suit other deep tech fields, creating a disconnect that discourages investors. Tech Transfer Offices (TTOs) do a fantastic job - but are stretched thin: They're managing licensing, building companies, and handling many tasks with limited resources. Also each university’s TTO might have their own internal processes with different priorities that can turn the spin out process into a lengthy bureaucratic one.

What is Deep Tech, Anyway ?

Deep tech goes beyond surface-level innovation, like what is understood as shallow tech, which describes scalable, straightforward solutions that typically function in highly competitive markets. Deep tech sits at the cutting edge of what’s possible, covering fields like AI, biotechnology, medtech, and quantum computing. These aren't your usual startups - they’re often the sole or one of the very few players in their field. Deep tech companies are founded on advanced, costly, and hard-to-duplicate technologies, with the potential to create long-lasting, transformative change.

The journey for deep tech founders is far from easy. Navigating a web of scientific research, IP, regulatory hurdles, and complex investment rounds is part of the process—all while keeping their technology on the bleeding edge.

One of the biggest "valleys of death" we encounter for spinouts is the challenge of moving tech out of universities and into the commercial world. A major hurdle apart from the obvious complexities? The education piece. People jumping into the sometimes unknown world of founding a start-up or moving it forward: this process is full of new vocabulary, stages and roadmaps, approaches, legal terms, and complex contrasts that only become clear once you’ve crossed to the other side. Unknowns around career paths and steps to take in a process walked by others but that one must tailor into its own experience, given that by definition building deep tech, is creating a new way.

Introducing the Deep Tech Series

There’s no shortage of resources out there; from guides to playbooks, but what we’ve heard when we share them is that they often feel disconnected from the real, inclusive and lived experience. After asking founders, “What would you have liked to access early in your spinout journey? What do you wish someone had told you, and in what way?” the answer was clear. The easiest, most human way to share these experiences is from person to person. That’s why we’re excited to introduce our spinout series and hopefully bring the process closer to you.

We aim to cut through the complexity and share our insights in a genuine, accessible way. This isn’t just another guide, it’s a shared resource shaped by diverse opinions and perspectives from us and also leaders, learners and mentors in the industry. Designed to demystify the deep tech landscape, this article series is here to save you time and equip you with the knowledge you need whether you’re talking to investors, TTOs, your future self or your team.

The path is tough, but it’s essential. Australia has a unique chance to lead the world in deep tech innovation, but that can only happen if every part of the ecosystem comes together. Let this series be your guide, a place where deep tech founders, investors, and everyone in between can find their footing in this new, revolutionary economy.