Hard-Tech Investors See Energy, Rare Earths and Defense as Attractive Entry Points

An investment strategy focused on hard tech and deep tech includes energy, mining and processing of rare earths, magnet production, defense, and specific aerospace areas where SpaceX may not be competitive. The appeal is tied to technological moats and multi-year advantages.

Deep-tech companies typically raise capital more slowly and less linearly than many high-profile AI companies at the seed and Series A stages. Emerging managers may identify successful projects earlier, while investors can build primary and secondary positions more proactively as the technology becomes de-risked.

After one or two seed rounds, a company may attract much larger checks once investors view its technology as de-risked and commercially promising. The strategy sees more attainable entry points than investing in a very hot AI company at the earliest stage, while emphasizing balance across sectors rather than excessive concentration.