Investor Insights: Emilia Garito, Founder and Chair, Deep Ocean Capital, in conversation with TFD CEO and Founder, Stephanie Forrest
Interviews with Global VCs on technology, trends, and turbulence
A few weeks ago, I had the opportunity to sit down with Emilia Garito, Founder and Chair of Deep Ocean Capital, an Italian-based VC investing in deep tech. For someone who studied Italian at university (and somewhat of an Italophile!) it was super interesting to hear about the technology innovation and M&A momentum that is happening in the country. Below is a summary of our conversation.
First off, I asked Emilia about the interesting technologies and companies that we should look out for this year:
There is a huge amount of technological innovation that’s happening at the moment in Italy, but there are a couple of areas of innovation and start-ups that come to mind:
AIKO Space is the first European company to demonstrate deep learning algorithms in orbit. The start-up can make satellites autonomous in their in-orbit dynamics and, in this way, it is transforming satellites into intelligent systems, capable of autonomously organising their activities and maximising mission efficiency, reducing dependence on ground control and improving the management of space resources.
Another super interesting area is synthetic biology. Officinae Bio is a Venice-based company that has created an AI platform for synthetic biology, specifically mRNA chains. The start-up has recently completed an exit transaction with an American multinational pharmaceutical company, which is a good indication of the interest in this specific area of innovation.
What are the most exciting sectors or trends in the next 12-18 months?
A few of the most interesting trends in the near term are:
- Cybersecurity applications: With the rise in cyberattacks, we are seeing an increased investment in this area and a rapid growth in B2B solutions and applications.
- Humanoid robotics and deep learning: applications for spatial and embodied intelligence solutions will also see momentum this year.
- Biotech for Cell therapy and genomics
Has Generative AI impacted your investment strategy at all?
Generative AI has not impacted our current investment strategy, which focuses on identifying real needs and investing in B2B solutions. We view AI as a tool that will optimise solutions in deep tech in sectors such as space, health, and the environment. Our approach is therefore solution-driven, not AI-driven.
Are there any under-the-radar technologies that are poised for rapid growth?
Technologies such as photonic communication and quantum technologies are expected to see significant growth in the next three to four years.
What’s the impact of the macroeconomic environment on the tech investment space?
Italy's position as the second country in Europe for M&A transactions in 2024, with a growth of 171%, makes it an attractive investment destination for the next five years. Foreign capital markets, especially Asian ones, are seeking to diversify investments geographically and across sectors due to international geopolitical instability. Italy can seize this opportunity with its technology and skills.
What’s your view on the emerging markets' contribution to the global technology landscape?
Emerging countries, excluding China, are projected to contribute up to 45% of global GDP growth in the coming years, presenting a significant opportunity for wealth creation.
What’s the most exciting area of tech and why?
Genomics and biotech, along with quantum technologies and photonics, are the most exciting areas due to their potential for significant global impact.
Do you have any advice for founders on getting noticed in the tech space?
Founders should focus on real market needs, avoid stretching their technical proposals, invest in unique and disruptive solutions, and be mindful of IP strategy as technology matures.
What are the common mistakes companies make when communicating to investors?
A common mistake is giving insufficient attention to revenue forecasts and sales pipelines in the early stages, assuming that business plans are fluid or that another VC will always be available. A well-structured and detailed sales pipeline is essential from the outset, even with a developing go-to-market strategy.