As former deep tech startup founders who are now venture capitalists, we鈥檝e lived both sides of the company-building journey. In 2018, we to . Now, we run an operator-led VC firm focused on AI, simulation, quantum and other frontier technologies.

Most recently, we had the privilege of backing and his team at 鈥� an spinout at the nexus of AI and quantum technologies 鈥� helping anchor the company鈥檚 most recent .

We鈥檝e learned a number of hard-fought lessons over the years while growing . Here, speaking founder-to-founder, we share some of our key lessons for scaling deep tech companies.

Solve a real problem

Deep tech must tackle large and urgent problems. The most successful deep tech founders we see focus on real-world applications from day one, not just R&D.

We were drawn to SandboxAQ because it already had real products and early customers at spinout. Despite working with cutting-edge quantum algorithms and AI, SandboxAQ was delivering value to enterprises in cryptography, drug discovery and geolocation sensing.

This early validation sends a powerful signal: Your technology isn鈥檛 a solution in search of a problem; it鈥檚 already solving problems.

Pick investors who truly understand your tech

When your startup is built on complex science or engineering, the last thing you want is a superficial investor who just likes the buzzwords.

Seek out smart capital 鈥� backers who have deep expertise in your domain and even firsthand operator experience. For SandboxAQ and our other portfolio companies, that strategy proved successful. Securing capital wasn’t just about raising money; it was about aligning with partners who understood the drivers of deep tech and could provide more than just financial support.

For founders, having investors who 鈥済et it鈥� means you spend less time explaining fundamentals and more time executing. Talk to their other portfolio CEOs: Are they merely financiers, or do they actively contribute insights and open doors?

A partner with domain savvy and empathy for the founder journey can be a game-changer when you hit the inevitable obstacles on the road to scale.

Leverage anchor investors to build a strong syndicate

Scaling deep tech often requires significant capital to reach full potential. A critical lesson we learned is the importance of having a strong anchor investor who can not only lead the round but also attract other top-tier investors.

In SandboxAQ鈥檚 Series D and E, we played an anchoring role by investing with conviction early. According to Hidary, our significant and early commitment has played a crucial part in its growth strategy.

The broader point for founders is not to go it alone in fundraising. Choose a lead investor who gives others FOMO. A credible lead can validate your startup鈥檚 potential in ways that your own pitch, however passionate, might not. SandboxAQ has done a great job attracting a mix of growth investors like ourselves along with strategic investors such as and .

Frame your narrative 鈥� educate the market

In cutting-edge fields, founders should not assume everyone immediately understands the significance of their innovation. Part of scaling a deep tech startup is becoming an educator and evangelist for your technology paradigm. We saw this firsthand with SandboxAQ. In a world suddenly obsessed with ChatGPT and large language models, SandboxAQ had to explain the concept of large quantitative models 鈥� essentially AI models geared for heavy number-crunching in scientific and industrial contexts.

The lesson for founders is to differentiate from the hype with clarity. Share a narrative that connects your deep tech to broader trends without getting lost in jargon.

Connect vision with execution

Deep tech founders are visionary by nature 鈥� you see a future that others don鈥檛 see yet. That vision is your North Star, but scaling a company requires marrying vision with rigorous execution. Under Hidary鈥檚 guidance, SandboxAQ assembled a deeply technical team and kept it focused on clear industry use cases.

Translate your moonshot into a roadmap: Set intermediate milestones that demonstrate progress 鈥� prototypes, pilot results, patents, regulatory clearances 鈥� whatever fits your field. This builds credibility over time. Also, be ready to iterate your approach without compromising your mission. In VC meetings, don鈥檛 shy away from discussing how you鈥檒l mitigate technical and market risks 鈥� it shows you鈥檙e not drinking your own Kool-Aid. A grounded, execution-focused mindset actually makes it easier to pursue audacious goals because you鈥檒l bring others along for the ride.

is co-founder and general partner at . Previously, he founded , inventing patented generative鈥慸esign AI that automated engineered鈥憄roduct design and delivering a鈥�9x return when鈥� acquired the company in 2018. He holds multiple issued and pending patents and brings deep expertise in generative design, simulation, AI and SaaS. Earlier, he was a senior engineer at , deploying generative鈥慸esign technology for , and taught and conducted AI research at and . He now invests in and mentors early鈥� and mid鈥憇tage deep tech founders.

, co鈥慺ounder and general partner at Parkway VC, is a serial entrepreneur who has invested more than $1鈥痓illion across venture and real estate deals with top鈥憅uartile returns. He earlier co-founded and was one of Frustum鈥檚 first, largest and most-active investors. As CEO of Hill鈥疓ray鈥疭even, he has developed 130-plus medical, self鈥憇torage, multifamily and retail properties for Fortune鈥�500 clients in 15 states. A former elite junior tennis player trained at , he studied economics at and now channels his competitive drive into mentoring deep tech founders and supporting youth through Match Point Impact and the .

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On Wednesday, DCVC co-founding partners and announced , which they say netted the firm $725 million in fresh capital to invest in early-stage “deep” technology companies.

Fund V is markedly larger than the firm’s previous funds. DCVC’s , closed at the end of 2016, topped out at $212 million.

Fund V is also significantly oversubscribed鈥攖o the tune of 25 percent鈥攆rom its initial target. The indicated that DCVC aimed to raise as much as $575 million. Fortune that the new fund’s limited partners include insurance funds, pension funds, charities, and university endowments.

Though Ocko and Bogue are the only general partners listed on for Fund V, submitted to the SEC on Tuesday evening, there have been some promotions and additions to the firm. was promoted from principal to partner. , who previously held executive roles at and , and advisor joined as partners.1 , formerly the director of public relations for , joined DCVC as VP of marketing and communications.

DCVC is now one of the best-capitalized investors in the “deep tech” market, an expansive category which encompasses sectors ranging from industrial automation and cybersecurity, to computational biology, geospatial intelligence, quantum computing, artificial intelligence application-specific integrated circuits (ASICs), and more.

In their statement, Bogue and Ocko say that the firm’s position as an early-stage investor “has consistently given us unique access to scientists and engineers using these computing ‘superpowers’ to attack previously insurmountable problems far beyond IT.”

They highlight a few of their current portfolio companies, including computational discovery company , “molecular construction” and biological materials science company , and , which aims to build “[the] Bloomberg terminal and platform for agricultural data,” according to DCVC.

The firm’s biggest exits to date include (IPO), (IPO), (IPO), and (acquired by Intel), among .

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