Deep-Tech Revenues: Patience Yields Returns

Deep-tech startups have often little to no revenue for extended periods, but this does not reflect a lack of progress or value. Instead, these companies focus on solving significant scientific and engineering problems, requiring years of intensive R&D.

Unlike shallow tech companies that rely heavily on marketing and could more easily achieve early growth, deep-tech ventures often experience a "hockey stick" growth trajectory once they clear key milestones, such as regulatory approvals or technical validations.

Take our portfolio company, Positrigo, a Swiss startup founded in 2018, as an example. The company spent years developing its NeuroLF® brain PET scanner, undergoing extensive clinical testing to ensure it met the highest standards for diagnosing neurological conditions like Alzheimer’s disease. In July 2024, Positrigo received FDA clearance for its device, marking a critical turning point. This regulatory milestone instantly unlocked commercial potential, allowing the company to fulfill existing pre-orders and generate substantial revenue without relying on heavy marketing campaigns. The timing of this approval coincided with growing demand for brain imaging, fueled by the release of new Alzheimer’s therapies that require accurate diagnostics. Positrigo’s compact and cost-effective solution met this need, allowing the company to capitalize on pent-up demand and scale its operations. This transition from a long pre-revenue phase to rapid market traction highlights how deep-tech startups can see exponential growth once they overcome major technical or regulatory hurdles.

Finally, the broader impact of deep-tech companies extends beyond financial returns. By tackling fundamental challenges in fields like healthcare, climate tech, and advanced materials, they drive high-impact innovations that can transform entire industries. For investors, this means that while deep-tech ventures often require more patience compared to SaaS companies, the potential rewards could be significant. Their success is rooted in the real-world value of their innovations, which can create both substantial financial returns and meaningful societal impact.