Investing in Deep Tech
Strategic Development
The SD team is the early stage deep technology investing entity within Temasek. Early stage companies are those in the late seed stage to Series B stage of investments, which are companies that are typically pre recurring revenue. Deep technology (deep tech) or hard tech is a classification of organization, or more typically startup company, with the expressed objective of providing technology solutions based on substantial scientific or engineering challenges.
We invest in 4 technology trends:
- NetZero technologies, referring to a subset of technologies that seek to address issues in decarbonization. These include carbon capture, utilization and sequestration, renewable energy production, hydrogen, decarbonization of heavy industries such as cement and steel etc.
- Future of Compute and Cognition, referring to a subset of technologies that seek to address technology trends such as Beyond CMOS technologies, future semiconductor technologies and quantum computing.
- Disruptive Materials, referring to a subset of technologies around new materials classes that are poised to disrupt existing industry verticals, but also to open up new markets as new materials and chemistries come online.
- Frontier or emerging technologies, which refers to a set of technologies that does not cleanly fit into any of the aforementioned verticals.
We invest in 3 modalities, namely direct investments into companies, fund investing and investments into joint ventures with large MNCs, with a view of capitalizing a new venture to commercialize technologies that are not part of the MNCs’ core business.
Examples of investments
Nuclear Fusion Startup
Operator of an energy research company intended to combine proven physics with magnet technology to accelerate the path to commercial fusion energy. The company engages in the design and building of fusion machines that provide limitless and clean fusion energy, enabling clients to contribute to the growth of clean energy and reduce the impact of climate change. The company raised US$1.8b of Series B venture funding in a deal led by Tiger Global Management on 1 December 2021. Temasek participated in this round that was priced by Tiger Global.
Green Cement Startup
Manufacturer of mineral-based limestone cement focused on contributing to the global goal of reducing carbon dioxide emissions. The company develops a new cementitious material that provides significant economic savings in operating costs compared to Portland cement, while reducing CO₂ emissions by a significant amount and has developed a patented process that converts carbon dioxide into aa cement and the process relies on existing infrastructure at the cement plant and utilizes raw materials more efficiently, thereby enabling businesses to get mandate-ready before they are impacted and cement producers to manufacture cement that is comparable in handling, curing, and performance than ordinary cement with less carbon dioxide emissions. The company raised US$30m in a deal led by Khosla Ventures and Temasek.
Quantum Computing Startup
Manufacturer of the first utility-scale quantum computer intended to drive advances in climate, healthcare, finance, energy, agriculture, transportation, communications, and beyond. The company's approach is based on photonic qubits, which have significant advantages at the scale required to deliver a fault-tolerant, general-purpose quantum computer. The company raised US$450m in a Series D fundraise led by Blackrock.