Arkady Kulik, founding partner of rpv, discusses how to evaluate deep tech deals, lack of scientist entrepreneurs, self-censorship in science, two types of motivation, neurotech benefits, and more!
Deep Tech Venture Capital Fund R.P.V. invests in the prototype and validation phase, filtering out companies lacking genuine breakthrough technologies.
R.P.V. follows a rigorous evaluation process, examining technology, feasibility, market potential, and founder reputation.
R.P.V. highlights neuroscience and photonics as exciting fields in deep tech, focusing on neurostimulation, brain modulation, photonic computer chips, and small modular nuclear reactors.
Deep dives
The Role of Scientific Expertise in Deep Tech Venture Capital
Deep Tech Venture Capital Fund R.P.V. focuses on investing in the middle stage of technology readiness known as the prototype and validation phase. This phase is considered the sweet spot for investment as it involves transitioning from theoretical stages to practical application. R.P.V. emphasizes the importance of scientific expertise in their investment process, utilizing a network of over 250 experts to evaluate the credibility and potential of deep science startups. By incorporating scientific review and external validation, R.P.V. aims to filter out companies that lack genuine breakthrough technologies, ensuring they invest in promising and viable deep tech ventures.
The Evaluation Process and Deal Breakers
R.P.V. follows a rigorous evaluation process to identify the most promising deep tech startups. After an initial review of company materials and assessment of breakthrough potential, selected companies proceed to a second meeting with the R.P.V. team. At this stage, deal breakers such as technology and IP protection, feasibility, market potential, and founder reputation are meticulously examined. Less than 5% of companies make it past this stage. If a company passes the evaluation, scientific due diligence is conducted, involving in-depth analysis, external peer review, and the scoring of various technological and business aspects. R.P.V. also provides feedback to companies that do not proceed, helping them understand areas for improvement or pivoting.
The Exciting Opportunities in Deep Tech
In the rapidly advancing landscape of deep tech, R.P.V. highlights neuroscience as the most exciting and impactful area of exploration. However, they also emphasize the importance of various other fields such as quantum computing, advanced materials, new energy solutions, and biotechnology. The ongoing convergence of these fields promises groundbreaking innovations like deep brain stimulation, stretchable electronics, and bionics. R.P.V. sees deep tech as being at a tipping point, akin to the early days of the IT industry in the 1980s, and is committed to investing in and supporting startups at the forefront of these transformative technologies.
Importance of Having Entrepreneurial and Scientific Expertise in Founding Teams
The speaker emphasizes the need for a balanced founding team consisting of both entrepreneurs and scientists in deep-tech startups. While scientists focus on technology development, entrepreneurs handle marketing, team building, partnerships, and strategy. The speaker believes that scientists often prefer to focus solely on technology and lack the necessary skills for these business aspects, which can hinder the growth and success of a startup.
Promising Areas in Deep Tech: Neuroscience and Photonics
The podcast highlights two exciting fields in deep tech: neuroscience and photonics. In neuroscience, the speaker emphasizes the potential of neurostimulation and brain modulation to address mental health issues, such as anxiety and depression, as well as enhancing cognitive performance. In photonics, the focus is on the development of photonic computer chips that can significantly reduce energy consumption and enable advancements in AI. Additionally, small modular nuclear reactors are mentioned as a transformative technology for clean and reliable energy production.
Arkady Kulik is a founding partner of rpv, a deep tech venture fund that aims to “drive tangible advancements in the well-being of humankind” by focusing on early, scientifically intensive ventures. He has over 15 years of experience in the IT sector as a C-level executive, a master’s degree in physics, and an MBA from INSEAD. Arkady joins the show to discuss how to evaluate a deep tech deal, why more scientists don’t become entrepreneurs, the ultimate goal of science, the two types of human motivation, and MUCH more! Important Links: