Introduction:

John Lee is an early-stage investor focusing on deep tech, enterprise software, cybersecurity, AI/ML, and automation.

What is Deep Tech?

Deep tech companies are similar to biotech companies in terms of capital structure.
Unlike traditional tech startups, they have a longer incubation period to accrue value.

Capital Allocation and Business Models

Scarcity of capital drives better business models.
Interesting hybrid models exist that are designed to develop revenue in the near term.

Examples from the Portfolio

Rare Base: Focuses on finding cures for rare diseases by characterizing cells and testing drugs on them. Sells IP assets as a novel business idea.
Count: Aims to make accounting firms more efficient by acquiring existing firms and implementing AI techniques.

Innovation in Deep Tech

Despite a renaissance in funding, deep tech has not yet penetrated the lives of ordinary consumers.
The scarcity of capital is forcing companies to be more creative in their go-to-market strategies.

Notable Geographical Clusters

Artificial Intelligence and Large Language Models (LLMs)

Future of LLMs

Doubts exist about the ability of current models to scale.
OpenAI aims to develop models with 100 trillion parameters, although the feasibility of this is debated.

The Intersection of Science and Deep Tech

Science is transitioning from an "artisanal" practice to an engineering discipline.

Application Areas

Reproductive Innovations: Research is being conducted on how to effectively assist couples in having children later in life.
Energy: A debate exists over the effectiveness of fusion vs fission in energy production.

Business Model Concerns

Long regulatory approval times are a challenge.
Jazz Venture Partners focuses on the convergence of deep tech and science, aiming for creative translation.

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