First-Mover Advantage: Why Invest Early in DeepTech?

In investing, timing and momentum are crucial.

This is even more true in the DeepTech sector.

Investing early not only allows investors to benefit from reasonable valuations, but also to maximize return potential by making full use of leverage effects. Here's why.

An attractive initial valuation

DeepTech startups, particularly at the early stage, tend to have modest initial valuations compared to their potential. This is explained by several factors:

• The innovative and sometimes complex nature of the technologies, which can deter certain traditional investors. Few professionals take positions as early as the pre-seed or seed stages.
• An early development stage, where proof of concept is still being validated. Founders know this, they can't yet use competition among investors to their advantage.
• A need for initial funding to accelerate R&D and commercial validation. Time is limited.

Exponential growth potential

Early investment in these companies offers a particularly attractive growth outlook. Deep Tech companies systematically target large-scale markets with disruptive solutions. This combination opens the door to exponential growth, unmatched in other sectors.

Solid assets that reinforce value

A major advantage of Deep Tech companies lies in their intellectual assets:

• Patents and intellectual property
• Unique technological know-how
• Significant barriers to entry

These assets grow stronger and more valuable as the company develops, helping secure the initial investment.

Significant leverage effect

The French Deep Tech ecosystem offers particularly interesting non-dilutive leverage opportunities:

• Grants and support dedicated to innovation (CIR, JEI, Bpifrance)
• The DeepTech 2030 Plan
• A multiplier effect that can range from 2x to 4x the initial investment

Faster liquidity events

Contrary to popular belief, Deep Tech companies can offer exit opportunities faster than one might expect. Technological maturity can quickly attract the interest of large corporations, creating exit opportunities as early as the following funding rounds.

An evolving participation strategy

Investing early also allows investors to:

• Position themselves for subsequent rounds with in-depth knowledge of the project
• Selectively maintain or increase their stake
• Benefit from co-investment opportunities

Conclusion

The first-mover advantage in Deep Tech investing isn't simply a matter of valuation. It's a combination of strategic advantages that maximizes return potential while contributing to the emergence of innovative solutions for society.

For savvy investors, this approach represents a unique opportunity to combine financial performance with positive impact, all while benefiting from the best possible entry conditions.

Example: CXS Therapeutics' valuation was multiplied by more than 3.5x between its December 2023 funding round and its December 2024 round.

Learn more about CXS Therapeutics: see Le Journal Valeureux.

Gaining exposure to CXS Therapeutics: since both funding rounds are now closed, you can still gain exposure to CXS Therapeutics by investing directly in the Valeureux fund.

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