Deep tech is at the forefront of technological evolution, driving breakthroughs that redefine industries and address complex global challenges. Unlike traditional tech startups that often focus on software-based solutions, deep tech ventures are rooted in advanced scientific and engineering innovations. Why does deep tech matter, and how is it shaping the future?

What Is Deep Tech?

Characteristics of Deep Tech

1. Scientific and Engineering Foundations:

Deep tech is built on years of research in domains like physics, chemistry, and biology.

2. High Barrier to Entry:

The complexity and specialized knowledge make it difficult for competitors to enter the space.

3. Longer Development Cycles:

Deep tech companies often require extensive testing and validation before reaching commercial viability.

4. Potential for Disruption:

These groundbreaking technologies can transform entire industries, from healthcare to energy.

Why Deep Tech Matters in 2025

Deep tech is not simply about innovation for its own sake—it addresses fundamental global challenges and delivers solutions that can impact billions of lives.

Key Areas of Impact

1. Healthcare & Biotechnology:

Advancements such as AI-driven drug discovery, personalized medicine, and gene editing (e.g., CRISPR) are transforming healthcare.

2. Artificial Intelligence & Machine Learning:

AI-driven deep tech is powering autonomous systems, natural language processing, and advanced robotics.

3. Quantum Computing:

Next generation computing capabilities can solve problems that are nearly impossible for classical computers to handle.

4. Sustainable Energy & Climate Tech:

Innovations in carbon capture, nuclear fusion, and energy storage are critical to combating climate change.

5. Aerospace & Space Exploration:

Companies like SpaceX and Blue Origin leverage deep tech to make space travel more cost-effective and efficient.

Challenges in Deep Tech Development

Although deep tech holds immense potential, it also faces notable challenges:

• High R&D Costs: Substantial investment is often needed before solutions become market-ready.
• Regulatory Hurdles: Many deep tech sectors, such as biotech and aerospace, must navigate strict regulations.
• Talent Shortages: Specialized fields like quantum mechanics or genetic engineering require rare skill sets.

The Future of Deep Tech

Deep Tech in Switzerland

Switzerland has established itself as a hub for deep tech innovation, drawing on strong research institutions, supportive government policies, and a thriving startup ecosystem. Its commitment to scientific excellence and technological advancement has cultivated numerous deep tech ventures across a wide range of fields.

Trends in Swiss Deep Tech

Quantum Technologies

Switzerland is at the forefront of quantum research, led by institutions like ETH Zurich and companies such as ID Quantique, focusing on quantum cryptography and communication.

Sustainable Technologies

Swiss companies are pioneering breakthroughs in sustainability, emphasizing renewable energy, carbon capture, and environmental monitoring. Climeworks, for example, specializes in direct air capture technology to remove CO₂ from the atmosphere.

Aerospace and Mobility

Innovations in hypersonic travel and autonomous systems are on the rise, with companies like Destinus developing hydrogen-powered aircraft capable of reaching Mach 5 speeds.

Agricultural Technology

Precision agriculture is gaining momentum, with startups like Gamaya using hyperspectral imaging and AI to optimize crop management and yields.

Notable Swiss Deep Tech Companies

1. Climeworks

• Overview: Founded in 2009 as a spin-off from ETH Zurich, Climeworks specializes in direct air capture technology, aiming to remove CO₂ from the atmosphere and store it underground, essentially turning it into stone.
• Achievements: In September 2021, the company launched “Orca” in Iceland, the world’s largest direct air capture and storage plant, capturing up to 4,000 tons of CO₂ annually. Climeworks has also secured significant funding, including $650 million in April 2022—a record in the carbon dioxide removal sector.

2. Flyability

• Overview: Established in 2014, Flyability is a pioneer in industrial drones for confined spaces. It provides solutions to industrial and manufacturing sites to eliminate human exposure to confined and hazardous spaces.
• Projects: Flyability has completed a high-profile mission with the U.S. Department of Energy to map the radiation in underground nuclear waste storage bins.

3. ID Quantique

• Overview: Founded in 2014, ID Quantique is a pioneer in quantum-safe cryptography, quantum key distribution (QKD), and quantum random number generation. It provides solutions to safeguard data against evolving threats, including quantum computing.
• Innovations: ID Quantique was among the first to commercialize QKD systems, used to secure government elections and financial transactions. Its quantum random number generators have been integrated into smartphones and other applications, enhancing communication security.

Key Differences Between Deep Tech and Regular Tech Startups

Feature	Deep Tech Startups	Regular Tech Startups
Foundation	Built on scientific research and engineering innovations	Built on software, digital platforms, or business models
Development Time	Long R&D cycles (5–10+ years)	Fast iterations, MVPs in months
Funding Needs	Requires heavy investment in research, prototyping, and testing	Lower upfront costs, often bootstrapped or VC-funded
Market Entry	High barriers due to complex regulatory approvals and infrastructure	Faster time-to-market with lower entry barriers
Risk Level	High risk, as breakthroughs may take years to commercialize	Lower risk, as digital products can pivot easily
Impact	Industry-wide or societal transformation	Improves existing solutions or introduces efficiencies
Examples	Quantum computing, AI-driven drug discovery, carbon capture	Mobile apps, SaaS platforms, e-commerce solutions

Deep Tech Investment Trends in Switzerland

Swiss Government Initiatives Supporting Deep Tech

Innosuisse

Established in 2018, Innosuisse fosters science-based innovation by backing projects with market potential. It promotes collaboration between research institutions and industry partners, offering training and coaching for startups.

Switzerland Innovation Park

Initiated in 2016, this national network of science parks includes sites in Zurich, Basel, and the EPFL Innovation Park in Lausanne. These hubs act as incubators, providing state-of-the-art research facilities and facilitating cross-domain partnerships.

Swissnex

Operating as a global network to connect Switzerland with key international innovation hubs, Swissnex supports Swiss startups and researchers in reaching global markets and forming international collaborations.

Notable Investors in Swiss Deep Tech

• HBM Healthcare Investments: Headquartered in Zug, this publicly traded venture capital firm focuses on emerging healthcare technologies, such as biotechnology, medical tech, diagnostics, therapeutics, and digital health.
• Redalpine: Located in Zurich, this European venture capital firm closed its largest fund, Redalpine Capital VII (RAC VII), with $200 million in August 2024. It targets 15 to 20 early-stage companies in Europe, including investments in fusion energy, gene editing, and AI-driven legal services.

Deep Tech Nation Switzerland: A Catalyst for Innovation

Deep Tech Nation Switzerland Foundation (DTN), founded in May 2024 by Swisscom and UBS, is an independent nonprofit dedicated to enhancing the framework for Swiss deep tech startups, scaleups, and investors. Its mission is to ensure that scientific and engineering breakthroughs translate into ventures that drive industry leadership and societal benefits.

Addressing the Funding Gap

Despite Switzerland’s global reputation for world-class research institutions and a strong education system, many Swiss deep tech startups struggle to secure the necessary capital for global expansion. Early-stage funding is often locally available, but over 80% of late-stage financing comes from foreign investors, sometimes resulting in a loss of control over promising companies. If this trend continues, Switzerland risks lagging behind international competitors and undermining its technological sovereignty.

Strategic Objectives and Initiatives

DTN has set ambitious targets to be achieved by 2033:

• Mobilize CHF 50 billion in Venture Capital: Doubling annual investment to CHF 5 billion to fuel the growth of Swiss deep tech startups.
• Create 100,000 Deep Tech Jobs: Strengthening Switzerland’s economic resilience through significant job creation.
• Position Switzerland as the #1 Deep Tech Nation: Elevating the country’s global status via impactful initiatives and strategic collaborations.

To accomplish these goals, DTN is implementing several measures:

• Venture Hub Switzerland: Creating competitive financial and legal structures to attract institutional and strategic investors.
• Scaleup Booster: Supporting startups and scaleups with high potential, turning them into attractive targets for both domestic and international investors.
• Information Platform: Increasing transparency and accessibility by providing thorough insights into the Swiss innovation ecosystem.
• International Promotion: Ensuring global recognition of Switzerland as a leading deep tech nation, thereby drawing further investment and expertise.

Collaborative Efforts and Partnerships

DTN exemplifies a collaborative approach by partnering with Venture Kick, an initiative focused on supporting science-based startups. Through such alliances, DTN combines resources and expertise to foster a more dynamic environment, ensuring that promising deep tech innovations can progress from laboratory to market success.

Through these concerted efforts, the Deep Tech Nation Switzerland Foundation acts as a key driver in transforming Switzerland’s deep tech landscape. By bridging funding gaps, nurturing top-tier talent, and enhancing global visibility, DTN helps foster sustainable growth and solidify Switzerland’s position as a leader in deep tech innovations.