The VC case for 'full stack deeptech'

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Jan 8, 2026

Ian Rountree, founder and partner at Cantos, shares insights from his work as an early-stage investor in deep tech. He discusses the dangers of selling technology to large incumbents, exposing the pitfalls of long sales cycles and institutional inertia. Rountree argues that focusing on full-stack companies can be more viable than mere technology licensing, citing mining success stories like Earth AI and KoBold Metals. He emphasizes the value of 'weird' startups and the advantages of commodities, highlighting how they can mitigate risk in a volatile market.

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ADVICE

Don't Sell Tech Into Long Sales Cycles

Avoid selling technology directly to large incumbents because their long sales cycles kill startup momentum.
Design your go-to-market to fit venture timeframes or you'll struggle to raise the next round.

ANECDOTE

Auto OEM Sales Cycles Killed A Best‑In‑Class Startup

Ian described an early portfolio company with top ML and interoperability software for automakers.
The startup died because Ford and Toyota's sales cycles were too long to raise the next round.

INSIGHT

Science ≠ Commercial Value

Breakthrough science alone doesn't equal business value; economics and margins matter.
Be problem-obsessed and agnostic about solution choice before commercializing research.

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For “deep tech” or industrial tech investors, a captivating idea on paper doesn’t always translate into a sustainable or viable business. Even a remarkable technological breakthrough isn’t guaranteed to survive the long sales cycles of the industrial world.

So which companies are worth the investment?

Ian Rountree, founder and partner at the venture firm Cantos, wrote a bare-bones thesis on X that offers guidance on this question. In it, Rountree lays out a stark list of the companies he invests in—and the ones he passes on.

In this episode, Shayle and Ian unpack his post and explore how it applies to the current landscape of hardware and industrial startups. They cover topics like:

Why selling technology to large incumbents like automakers or utilities can be a death sentence for startups
The pitfalls of "commercializing science"
Why capital risk to sell an end-product can be better business than licensing technology
Why "weird" companies—"N of 1" startups—can generate huge amounts of talent and capital
Why selling commodities (like electrons or minerals) can actually be a safer bet than entering a new market
Real-world examples of full-stack success in the mining industry, including Earth AI and KoBold Metals

Latitude: Earth AI’s play in the hunt for critical minerals

Catalyst: Calibrating hype with Akshat Rathi

Catalyst: Climate tech startups need strong techno-economic analysis

Open Circuit: Pain, resilience, and bargain hunting for climate tech investors

Credits: Hosted by Shayle Kann. Produced and edited by Max Savage Levenson. Original music and engineering by Sean Marquand. Stephen Lacey is our executive editor.

Catalyst is brought to you by Uplight. Uplight activates energy customers and their connected devices to generate, shift, and save energy—improving grid resilience and energy affordability while accelerating decarbonization. Learn how Uplight is helping utilities unlock flexible load at scale at uplight.com.

Catalyst is brought to you by Antenna Group, the public relations and strategic marketing agency of choice for climate, energy, and infrastructure leaders. If you're a startup, investor, or global corporation that's looking to tell your climate story, demonstrate your impact, or accelerate your growth, Antenna Group's team of industry insiders is ready to help. Learn more at antennagroup.com.