Deep Tech Disruption: 15 Sectors Pi Ventures Predicts Will Change

A Shift in Focus: Examining Deep Tech Innovation

The current startup landscape often emphasizes large funding rounds and extended periods of self-funding. However, it’s crucial to periodically analyze the underlying trends driving innovation itself.

Today, we’ll be doing just that, leveraging insights from a new report.

pi Ventures’ Deep Tech Shifts 2026 Report

The Exchange was granted exclusive early access to pi Ventures’ “Deep Tech Shifts 2026” report. This document pinpoints 15 specific deep tech subsectors projected to experience significant growth and reach a critical inflection point by the year 2026.

The report’s conclusions are supported by thorough research.

Insights from pi Ventures’ Team

Manish Singhal, a founding partner at pi Ventures, notes that the report’s findings aren’t solely based on data analysis. They are also informed by direct discussions with numerous entrepreneurs in the field.

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Deeper Dive and Key Takeaways

Beyond a detailed examination of the report’s contents, we will also present key learnings gleaned from interviews with Singhal, Roopan Aulakh – pi’s managing director – and principal Shubham Sandeep.

These conversations provided valuable context and nuance to the report’s projections.

Forecasting 15 Transformative Trends

Pi Ventures has identified 15 distinct areas poised for significant disruption and fundamental changes within the global business landscape over the coming five years. These sectors are anticipated to experience pivotal innovations.

Key Areas of Anticipated Disruption

• Alternative Protein: Transitioning from a supplemental option to an essential food source.
• Blockchain Technology: Evolving from a nascent promise to widespread adoption.
• Brain-Computer Interfaces: Shifting focus from simple data acquisition to actionable intelligence.
• Climate Technology: Becoming increasingly crucial, moving beyond peripheral considerations.
• Data Privacy: Progressing towards enhanced anonymity and user control.
• Energy Storage Solutions: Diversifying beyond Lithium-Ion batteries to explore alternative chemical compositions.
• Enterprise Workflows: Integrating Artificial Intelligence to augment human capabilities.
• Healthcare Screening: Moving from reactive diagnosis to proactive preventative care.
• MLOps (Machine Learning Operations): Shifting from internal management to outsourced, managed services.
• Nature Co-Design: Replacing traditional materials with sustainable biomaterials.
• Quantum Computing: Progressing from theoretical supremacy to practical advantages.
• Robotics: Advancing beyond basic automation towards cognitive abilities.
• Space Technology (In-Space Operations): Expanding from deployment to comprehensive in-space resource management.
• Space Technology (Launch Services): Becoming more accessible through democratization and reduced customization.
• Synthetic Content Creation: Scaling from informal applications to robust commercial uses.

For clarity, “nature co-design” encompasses the development and application of biomaterials. Furthermore, “synthetic content creation” refers to AI-driven generation of text, images, and audio, with pi Ventures predicting a significant increase in its commercial viability.

Strategic Investment Timing

According to Singhal, the company has recently initiated the deployment of its second fund, totaling $100 million. This represents a substantial increase compared to their first fund, which allocated $30 million across 15 companies with ties to India.

The current objective for pi is to provide capital to 25 startups in their early stages of development.

Headquartered in Bangalore, pi positions itself on its website as a leader in deep tech investments within India. While not all portfolio companies are physically located in India, each maintains a significant operational link to the nation.

For example, AI Palette, a platform utilizing machine learning for consumer trend forecasting, operates from Singapore but maintains a key engineering center in Bangalore.

Similarly, Wysa, a mental health application, has a presence in Bangalore, Boston, and London.

Singhal emphasizes pi’s commitment to supporting companies that are “global innovators,” extending their reach beyond India and capitalizing on deep tech advancements.

He stated that the firm prioritizes backing “disruptive innovation” over merely incremental improvements.

However, pi’s investment strategy deliberately avoids “pure science or research,” focusing instead on the convergence of scalable business models and groundbreaking technology.

The importance of timing is central to pi’s approach, as detailed in their recently published 67-page report.

Singhal explained that premature investment in an innovation can lead to diminished returns.

Conversely, delayed investment may also yield suboptimal results if the innovation loses its competitive edge.

He concluded that aligning investment with the optimal moment of innovation resonance is crucial for achieving positive outcomes.

Understanding Inflection Points with a Novel Framework

pi Ventures utilizes a proprietary internal framework designed to pinpoint critical shifts in deep tech. This framework centers around a “demand and supply resonance map,” employed to dissect evolving technological landscapes.

The application of this framework will be demonstrated through two case studies. The core principle is visually represented in the chart provided below:

This analytical tool proves valuable for trend assessment. It can also benefit investors operating with varied investment timelines and strategic focuses.

Defining Areas of Interest

pi Ventures focuses on what they term “the art of possible,” a concept highlighted by limited partner Raj Shah. This refers specifically to zone B, representing a strategic balance between existing market needs and cutting-edge technological advancements.

Furthermore, the firm also considers zones C and E, to factor in existing market momentum. This holistic approach ensures a comprehensive evaluation of potential opportunities.

“This framework has been central to our analytical processes for the past two years, since its internal development,” stated Singhal. The resonance map is a crucial component of the report’s trend analysis.

Alongside the map, the report examines “market drivers and shifts currently in progress,” the “technologies facilitating these shifts with an inflection point projected by 2026,” and “illustrative examples of nascent applications and use cases.”

Practical Application of the Framework

The framework’s utility is best understood through its practical implementation. The following sections will detail how this approach is applied to specific deep tech trends.

• The map helps identify areas where technological innovation aligns with market demand.
• It allows for a nuanced understanding of the forces driving change.
• The framework supports informed investment decisions based on projected growth.

Key takeaway: This resonance map provides a structured methodology for evaluating deep tech opportunities.

The Evolving Landscape of MLOps

MLOps, fundamentally, represents a collection of practices focused on the reliable and efficient deployment and maintenance of machine learning models in production environments. Predictions suggest a transition within MLOps, moving from self-managed, in-house operations to utilizing managed services. This shift is driven by a desire to elevate the productivity of ML engineers by abstracting away complex infrastructure management.

The following image illustrates this anticipated evolution:

A dynamic method for tracking emerging trends is demonstrated through a demand and supply resonance map. Within the context of MLOps, this map highlights two key subtrends: MLOps workflows, and the increasing importance of observability and explainable AI. Roopan Aulakh, Managing Director at pi, notes that these are being treated as distinct areas requiring different solution approaches.

The positioning of each trend on the map represents pi’s assessment. However, the heightened need for observability solutions – those that proactively prevent data downtime – aligns with the current activity observed among startups in this sector.

While the report refrains from naming specific companies, several firms have recently garnered attention, including Anomalo, Arize AI, Monte Carlo, and WhyLabs.

Trends categorized as “Shifts in the works,” such as the adoption of software engineering best practices like version control and robust data pipelines within ML, mirror recent industry observations. These developments are integral to the broader expansion of MLOps.

Key Technological Advancements

The report identifies four technological advancements that are facilitating these shifts. These include explainable AI techniques, fostering transparent decision-making processes.

Furthermore, ML platforms capable of handling complex models are democratizing model development. Automated data quality testing is crucial for maintaining data integrity over time. Finally, advancements in querying engines are enabling faster processing and iterative cycles.

Examples of applications are presented, echoing companies already making waves in the field. It is anticipated that the services these firms provide will experience increased demand and become more readily achievable.

Is Blockchain Technology Reaching Wider Adoption?

The extent to which blockchain is becoming commonplace may differ based on individual technological familiarity. However, for many, blockchain serves as a strong illustration of how reports can illuminate emerging trends that one may only be peripherally aware of. A concise presentation effectively summarizes shifts that have been discussed, prompting consideration of potential future applications.

The central argument presented is that blockchain technology has, until now, largely been equated with cryptocurrencies, often lacking substantial practical applications. The report forecasts that the development of more scalable solutions, designed to simplify adoption, will drive increased mainstream integration across both consumer and enterprise sectors.

Given prior experience with trend mapping, let's concentrate on key market observations. The report supports its projections with data sourced from CoinMarketCap, DefiLlama, and Fortune Business Insights. Fortune Business Insights projects the global blockchain market will expand from $4.68 billion in 2021 to $104.19 billion by 2028, representing a compound annual growth rate (CAGR) of 55.8% during the 2021-2028 forecast period.

The report subsequently details specific examples of potential use cases.

The current momentum is largely attributable to the resolution of key blockchain challenges through innovative solutions.

For example, the demand for blockchain transaction processing that is both more scalable and secure explains the $50 million investment made by a16z into Matter Labs, the creator of zkSync. As Lucas Matney of TechCrunch highlighted, their zero-knowledge approach to roll-up scaling for Ethereum has the potential to facilitate “faster and less expensive transactions without compromising the security of the Ethereum network.” This is a concept that might have been unclear previously, but is now more readily understood within the context of a broader trend.

Extending this analysis to 13 additional areas yields a valuable report that aids in staying current with shifts that may reach a critical point in the coming years. It also provides insights into the requirements for successful investment in disruptive technologies from a venture capital perspective.

While pi Ventures has identified its needs – recognizing shifts likely to accelerate within the next five years and securing sufficient capital for subsequent investments – it still prompts consideration of whether the existing venture capital model optimally supports these endeavors. This is a topic we intend to explore further on The Exchange later this week, so please remain tuned for updates.