Navigating the Frontier of Deep Tech Venture Capital: Insights from the Trenches

The world of deep tech investing is not for the faint of heart. It's a high-stakes game where the rules are constantly shifting, and the players must navigate a labyrinth of geopolitical tensions, technological disruptions, and existential threats.

But for those with the vision, the expertise, and the stomach for risk, the rewards can be immense - not just in terms of financial returns, but in the potential to shape the future of our planet and our species.

At the massive VC conference led by @Max Pog and his awesome team at Inniches I had the privilege of moderating a panel of some of the most innovative and forward-thinking investors in the deep tech space. These are individuals who have been in the trenches, who have seen the ups and downs of the industry firsthand, and who have emerged with hard-won insights and battle scars to show for it.

Seth Dobrin, General Partner @ 1infinity Venture

Dr. Seth Dobrin is the former Global Chief AI Officer at IBM, where he led AI strategy across all divisions. He is now the CEO of Qantm AI, a strategic advisory firm that designs and implements human-centered AI solutions for Fortune 500 companies. Dr. Dobrin is also the General Partner at 1infinity, a venture fund targeting $500M in capital. He holds a background in human genetics and has authored the book AI iQ for a Human-Focused Future.

Oleg Demidov, General Partner @ Beyondearth tech

Dr. Oleg Demidov is a 2-time exited founder and investor specializing in space tech and climate tech. In 2024, he co-founded Beyond Earth Technologies and COSolve, investment firms focused on advancing space and climate innovation. He also co-launched the First Space Tech Syndicate on AngelList with 550+ members, democratizing access to space investments. Previously, Oleg co-founded and led CarbonSpace, an AI-powered satellite platform monitoring global carbon emissions, securing investments, Fortune 500 clients, and multiple awards, including the Shell New Energy Challenge, before exiting in 2024.

While traditional VC funding may have taken a 23% hit, the long-term perspective required for deep tech investing means that short-term fluctuations are par for the course.

One of the key takeaways from the panel was the resilience of deep tech investment in the face of a contracting market.

But navigating the deep tech landscape requires more than just a strong stomach and a long-term outlook. It also requires a keen understanding of the complex geopolitical dynamics at play. With tensions between the US and China at an all-time high, investors must be strategic in how they position themselves and their portfolios.

As Dr. Seth Dobrin of 1Affinity Ventures put it, "We're literally funding the reconstruction of reality itself." This is not a game for those seeking quick wins or easy money.

For Dobrin, that means setting up shop in Singapore, a neutral ground that allows his fund to work with both Western and Chinese founders. For Oleg Demidov of Beyond Earth Tech, it means recognizing the varying dynamics across different sectors - space tech may require access to US markets and NASA grants, while climate tech is gaining traction in Europe.

But perhaps the most exciting frontier in deep tech investing lies in the future of AI. While much of the hype has centered around large language models like those developed by OpenAI and Anthropic, the panelists see greater potential in smaller, more specialized models and new hardware paradigms.

As Dobrin notes, the real value may lie in startups like Deep Seq, which are gaining traction with developers for their innovative approach to code generation. By focusing on efficiency and new architectures, these next-generation AI technologies have the potential to unlock value in ways that the large, resource-intensive models cannot.

But with great power comes great responsibility, and the panelists were quick to emphasize the growing focus on impact and accountability in deep tech investing. Both Dobrin and Demidov highlighted their funds' commitment to tracking diversity metrics and aligning their investments with sustainability goals.

For Dobrin, that means employing a metric system for evaluating the ethical implications of the technologies they invest in. For Demidov, it means prioritizing investments in climate change mitigation and adaptation strategies. As investors, we have a moral obligation to consider the long-term consequences of the technologies we help bring into the world.

As the panel drew to a close, I was struck by the sense of purpose and conviction that radiated from these individuals. They are not just investors, but visionaries and change-makers, driven by a deep sense of mission and a belief in the transformative power of technology.

They know that the road ahead is uncertain, that the challenges are immense, and that success is far from guaranteed. But they also know that the potential rewards - for themselves, for their investors, and for society as a whole - are too great to ignore.

For emerging managers looking to break into this space, the panelists offered some sage advice:

Stay focused, prove your value to limited partners, and be prepared to adapt to changing market dynamics. The deep tech frontier is not for the timid or the inflexible, but for those with the vision, the expertise, and the courage to blaze new trails.

As I left the conference that day, I couldn't help but feel a sense of excitement and possibility. The world of deep tech investing may be complex and challenging, but it is also a world of immense opportunity and potential. With the right mindset, the right partners, and the right approach, there is no limit to what we can achieve.

The future is ours to shape, and the journey starts now.

Together, we rise.

Leesa Soulodre is the Managing Partner of R3i Capital, a Delaware-based applied AI and emerging tech Venture Capital fund. A serial entrepreneur and Fortune 500 advisor turned deep tech investor. Leesa is a board member of the AI Asia Pacific Institute and has a portfolio of IP-backed emerging tech companies scaling impact.

She teaches Strategy and Entrepreneurship at SMU Cox School of Business and recently authored "Algorithmic Investment Roulette: Who Survives, Who Thrives, Who Codes Your Future" (2025).

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