Deep Tech’s Growth is a Generational Opportunity
Issue: 137. Subscribers: 66,988.
We’re thrilled to share that our co-founder, Alexandra Vidyuk, was featured in a 4-page interview with International Finance Magazine! 🎉
In the piece, Alexandra dives deep into the generational opportunity in deep tech and what it takes to build the future.
If you haven’t had a chance to read it yet, you can find the full article here:
We’re also sharing the full text below for easy reading.
As the deep tech market surges toward an estimated $714.6 billion by 2031 with a remarkable 48.2% compound annual growth rate, few investors understand this landscape as intimately as Alexandra Vidyuk. The physicist-turned-venture capitalist has positioned herself at the forefront of the most transformative technological wave of our generation, backing breakthrough companies across space technology, robotics, energy systems, and advanced materials.
Through her leadership at Beyond Earth Ventures and strategic partnerships with leading deep tech firms, Vidyuk has demonstrated an exceptional ability to identify and nurture technologies that address both terrestrial challenges and space exploration needs. Her track record includes early investments in companies like Lunar Outpost, Zeno Power, and Tandem PV, which are redefining infrastructure for a more resilient future.
With over 60,000 subscribers following her insights through Space Ambition and recognition as a Karman Pioneer among the top 50 space leaders globally in 2025, Vidyuk represents the new generation of investors who understand that deep tech is not just an investment opportunity—it’s an imperative for humanity’s future.
In an exclusive interview with International Finance, Alexandra Vidyuk, CEO & General Partner of Beyond Earth Ventures, shares insights on why deep tech is becoming the most resilient and essential investment class in today’s volatile geopolitical climate, highlighting how strategic sectors like space, energy, and next-gen computing are shaping a new era of infrastructure, national security, long-term wealth creation, and beyond.
How do geopolitical tensions and trade wars make deep tech a more attractive investment compared to traditional tech sectors?
Geopolitical tensions and trade wars make deep tech more attractive because deep tech operates on a fundamentally different level, focusing on infrastructure rather than interface. While traditional tech sectors are more exposed to consumer sentiment, regulatory shifts, and global supply chain fragility, deep tech addresses enduring, non-negotiable needs: energy, defence, space, and compute. These aren’t subject to political cycles; they’re dictated by physics and long-term strategic imperatives.
It doesn’t matter who’s in office five or ten years from now, because we’ll still need more energy, resilient infrastructure, and secure systems. Space isn’t going away. Government and defence budgets are pouring into these sectors, accelerating adoption and funding R&D that startups can commercialise. For example, proposals like Trump’s Golden Dome may sound political, but in practice, they catalyse innovation in dual-use technologies, such as space-based sensing, energy networks, and hardened compute, which have profound civil applications. In this climate, deep tech isn’t just resilient; it’s essential.
With deep tech projected to grow at a CAGR of 48.2% through 2031, what sectors within it do you see as most promising right now?
It’s important to distinguish between early-stage R&D and research-ready sectors, and as investors, that’s exactly our job. We focus on identifying areas where scientific breakthroughs are transitioning into scalable, defensible businesses. Based on our investment thesis at Beyond Earth Ventures, we see generational wealth creation potential today in space, robotics, next-gen computing, and energy.
Given the capital-intensive and long R&D cycles in deep tech, how should investors adjust their expectations around ROI and time horizons?
First of all, there are a lot of misconceptions about deep tech and its timelines compared to typical tech cycles. Many investors got used to the crypto cycle, expecting outsized returns in 18 to 36 months, but that was an anomaly. Even in traditional tech, the average time from founding to IPO in the US is still around 16 years. Deep tech isn’t unusually long; it’s just unusually real.
Yes, deep tech is capital-intensive, but it also builds defensible moats that aren’t vulnerable to the next LLM release. A product like DeepSeek might disrupt half a SaaS portfolio overnight, but it’s not going to wipe out your rockets, fusion reactors, or novel materials platforms. These are long-term bets, but they’re anchored in infrastructure, not user engagement.
Investors should adjust their expectations accordingly—this is about building the backbone of the future, not chasing the next growth hack. The returns are slower to mature, but far more resilient when they do.
How can deep tech investors mitigate risk, especially in early-stage ventures that hinge on scientific breakthroughs?
Risk mitigation in deep tech requires three fundamental strategies. First, scientific due diligence with expert networks is non-negotiable. We maintain relationships with leading researchers and former government scientists who can evaluate the technical feasibility of breakthrough claims.
Second, we focus on companies with dual-use applications and multiple market pathways. This diversification reduces dependence on any single commercial outcome.
Third, we prioritise founders with deep domain expertise and proven track records in translating research into commercial applications. At Beyond Earth Ventures, we systematically evaluate whether teams have the technical depth to navigate inevitable scientific challenges while maintaining a commercial focus. Additionally, we structure investments to align with government funding cycles and policy initiatives, leveraging public sector support to reduce private risk exposure.
To what extent are governments driving deep tech innovation as a national security priority, and how can startups align with these national agendas?
Government policy has become the primary catalyst for deep tech innovation, particularly in strategic sectors like semiconductors, quantum computing, and space technology. The convergence of the US CHIPS Act, European Chips Act, US Golden Dome and similar initiatives in Asia creates a coordinated global push for technological sovereignty. This represents a fundamental shift from market-driven innovation to policy-driven strategic development.
Startups can capitalise on this trend by aligning their technology roadmaps with national priorities. This means understanding export controls, developing dual-use capabilities, and building relationships with government and research institutions.
Companies that successfully navigate security clearances and regulatory frameworks gain access to massive government contracts and preferential treatment in policy implementation. The key is demonstrating how your technology addresses national security or economic competitiveness challenges.
Why are deep tech startups often more resilient during economic downturns compared to consumer-facing tech companies?
Deep tech’s resilience stems from addressing fundamental infrastructure needs rather than discretionary consumer spending. During economic uncertainty, governments and enterprises prioritise investments that enhance productivity, security, and competitiveness, precisely what deep tech delivers. Unlike consumer apps that face immediate budget cuts, deep tech solutions often become more essential during challenging periods.
Additionally, deep tech companies typically maintain longer development cycles and stronger intellectual property positions, making them less susceptible to rapid market shifts. Government contracts and strategic partnerships provide stable revenue streams independent of consumer sentiment. The recent market data confirms this: deep tech funding remained relatively stable while consumer tech investments plummeted.
How are companies like Lunar Outpost and Xona Space Systems redefining infrastructure for a more resilient and decentralised future?
These companies exemplify the space-terrestrial convergence that defines next-generation infrastructure. Lunar Outpost’s Mobile Autonomous Prospecting Platform (MAPP) rovers demonstrate how lunar surface operations can inform terrestrial robotics for extreme environments. Their technology applies equally to Mars exploration and deep-sea mining operations on Earth.
Xona Space Systems represents an even more fundamental infrastructure shift, developing satellite constellations that provide centimetre-level accuracy positioning compared to GPS’s metre-level precision. This accuracy enables autonomous vehicle deployment, precision agriculture, and advanced robotics applications previously impossible. By operating from low Earth orbit with distributed atomic clock architectures, they’re creating resilient infrastructure immune to traditional GPS vulnerabilities.
What kind of innovations in deep tech are most critical in tackling climate change and resource scarcity today?
Climate-focused deep tech must tackle systemic challenges rather than offer incremental improvements. Fusion energy, for example, represents a transformative solution.
We are actively monitoring companies like Commonwealth Fusion and others to identify the right timing for investment. We’re also exploring emerging technologies such as perovskite solar cells, which we believe could address key efficiency gaps. Additionally, we see significant potential in the hydrogen economy as a major area of future growth.
How important is collaboration between startups, governments, and research institutions in accelerating deep tech commercialisation?
Collaboration is essential. Deep tech commercialisation cannot succeed through traditional startup models alone.
The complexity of breakthrough technologies requires resources and expertise that no single entity possesses. Government research institutions provide fundamental scientific capabilities, while startups offer commercial agility and market focus.
At Beyond Earth Ventures, we actively facilitate these collaborations through our network of government partners, research institutions, and corporate strategic investors. The most successful deep tech companies leverage government grants for early-stage research, partner with universities for talent and facilities, and collaborate with large corporations for market access and scaling capabilities. This ecosystem approach accelerates development while reducing individual risk exposure.
What advice would you give to limited partners or venture capitalists who are new to deep tech investing but want to be part of this emerging supercycle?
First, invest in learning before investing capital. Deep tech requires understanding scientific principles, regulatory environments, and technology development cycles that differ fundamentally from traditional venture investing. Build relationships with technical advisors who can evaluate breakthrough claims and market potential.
Second, start with established fund managers who have demonstrated deep tech expertise and portfolio success. The technical due diligence requirements and longer investment cycles make this space particularly challenging for new investors. Consider co-investment opportunities with experienced deep tech funds to gain exposure while learning investment processes.
Finally, focus on dual-use technologies and companies with multiple market applications. This reduces risk while maximising market potential. At Beyond Earth Ventures, we target technologies that address both terrestrial and space challenges, creating resilient investment opportunities across economic cycles. The deep tech supercycle represents a generational opportunity, but success requires patience, expertise, and strategic collaboration.