Deep Tech Renaissance: John Lee on Emerging Technologies and Capital Allocation
Oct 23, 2023•50 min•Season 14Ep. 18
Episode description
Introduction:
- John Lee is an early-stage investor focusing on deep tech, enterprise software, cybersecurity, AI/ML, and automation.
- 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.
- Scarcity of capital drives better business models.
- Interesting hybrid models exist that are designed to develop revenue in the near term.
- 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.
- 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.
- San Francisco and Boston are significant clusters for deep tech companies.
- LLMs are seen as collections of human intelligence trained on internet content.
- Emergent properties arise from the crosstalk across different nodes in 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.
- Science is transitioning from an "artisanal" practice to an engineering discipline.
- 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.
- Long regulatory approval times are a challenge.
- Jazz Venture Partners focuses on the convergence of deep tech and science, aiming for creative translation.