Day 33 of 100 Days Agentic Engineer Challenge: SaaS is dead for VC

Image generated with Pixonaut.art

Today I found a LinkedIn post about how easy it is nowadays to build SaaS with the help of no-code / low-code tools, even one person can build it. Most interesting was a comment that VC (Venture Capital) is now addressing another area because SaaS can be bootstrapped, doesn’t need any extra funding. So this doesn’t mean anything bad about SaaS, but just that VC is no longer needed to run and grow it. Ok, so then what is VC addressing right now? I will try to answer this question as there was actually an answer in the comments, but first let’s check my daily tasks routine.

Daily Tasks Routine

1. Physical Activity — After 32 days of doing push-ups every day, I have some minor arm injury, but no problem, I could swith the exercise to squats and done 35.
2. Seven hours of sleep — I slept for 7 hours, but again I went to sleep too late. I need to work on this and go to bed earlier, at least around 23:30.
3. AI Agent — Continue to extend my app Pixonaut.art with some semi-automated flows and will try later to find out what would be the best way to transition to an agentic system approach.
4. PAIC — In queue.
5. Data Science — In queue.

If you want to know what all these tasks are about, read the introduction to the 100 Days Agentic Engineer Challenge.

What is the best tech for VC?

In the comments there were 2 areas mentioned the Deep-Tech and Health-Tech. I can imagine that these industries require a lot of R&D, which comes with higher budgets to run the startup. But let us focus on Deep-Tech and try to explain what it means.

Deep technology, or deep tech, refers to a category of startups that leverage breakthrough scientific discoveries or advanced engineering innovations to create novel solutions.

These startups typically operate in, but are not limited to, diverse fields such as agriculture, life sciences, chemistry, aerospace, and green energy.

Key characteristics of deep-tech startups include

• Impact: Deep tech innovations are highly disruptive, either transforming existing markets or creating entirely new ones. Their advances can have a significant impact on economies, societies, and everyday life.
• Time & Scale: The development of deep technologies requires significant time and effort compared to more conventional technologies, such as mobile apps or websites. For example, artificial intelligence has taken decades to develop and is still improving.
• Capital intensity: Deep tech startups require significant early-stage investment for research, prototyping, hypothesis validation, and technology development before reaching market readiness.

Deep-tech Companies Examples

Below are several examples of recent deep technology companies — startups that are built on breakthrough science or engineering innovations — and a brief description of each:

1. DeepSeek
   A Chinese deep tech startup focused on developing open‐source large language models, DeepSeek has gained attention for its DeepSeek‑R1 model, which achieves performance comparable to major AI systems while using far fewer GPUs and lower training costs.
2. Space Forge
   Based in the United Kingdom, Space Forge is pioneering in‑space manufacturing. By leveraging the unique conditions of microgravity, the company produces materials and components that cannot be made efficiently on Earth, potentially transforming aerospace and material science sectors.
3. Universal Quantum
   This UK-based startup is developing scalable quantum computing systems with the ambitious goal of building a million‑qubit quantum computer. Its modular, error‑corrected architecture aims to tackle problems in finance, chemistry, and logistics that are intractable for classical computers.
4. Anduril
   Operating in the defense and security arena, Anduril builds advanced autonomous hardware and AI software to enhance national security. Its systems — ranging from unmanned aerial and ground vehicles to integrated surveillance platforms — are designed to address complex real‑world threats with cutting‑edge technology.
5. Evyon
   A Norwegian startup repurposing used electric vehicle batteries for industrial‑scale energy storage, Evyon employs advanced battery intelligence and modular design to extend battery life and reduce environmental impact, supporting the transition to renewable energy.

Is it possible to run one man deep-tech startup?

While it’s theoretically possible for a single highly skilled individual to begin developing a deep-tech idea, in practice deep-tech startups are usually much more challenging to build alone than typical SaaS ventures. Deep tech is defined by its focus on solving substantial scientific or engineering challenges through long-term research and development and often requires significant capital investment. Here are a few factors to consider:

• Complexity and Interdisciplinary Expertise: Deep-tech innovations — such as those in quantum computing, advanced materials, or biotech — often demand expertise in multiple disciplines (for example, advanced engineering, physics, and software). Unlike SaaS startups that can leverage low-code/no-code tools for rapid prototyping and launch, deep tech usually requires developing a working prototype or proof of concept through intensive R&D, which is difficult to accomplish without the complementary skills of a team.
• Capital Intensity and Long Development Cycles: Deep-tech ventures typically need substantial early-stage funding to support laboratory work, complex prototyping, and long R&D phases before commercialization becomes feasible. Even if you’re capable of building a prototype on your own, scaling it into a market-ready product often requires additional resources and partnerships that are hard to manage as a solo founder.
• Collaboration and Risk Mitigation: Being a solo founder in deep tech also means handling all aspects of the venture — from technical development to market validation and fundraising — on your own. Investors tend to favor founding teams in this space because a diversified team can better navigate the technical risks and market uncertainties inherent in deep tech.

Maybe as an electrical engineer with data science skills, I could take a first step into a deep-tech startup. I have to think about it. New OpenAI reasoning model came today to help:

• As an Electrical Power Engineer, you already possess a strong technical foundation that is highly applicable to deep-tech ventures. Deep tech isn’t just about software — it often requires tackling challenging problems in hardware, energy conversion, and system optimization. Here are several steps and ideas to help you start a deep-tech journey in your field:

Identify a Critical Problem in Energy Systems:
Look for challenges within power systems that have significant societal or environmental impact. For example, you might focus on:

• Smart Grid Optimization: Using data analytics, IoT sensors, and even AI (or LLM-powered decision agents) to optimize grid performance, improve load balancing, and predict failures.
• Renewable Energy Integration: Designing control systems or novel power converters that can efficiently integrate intermittent renewable sources into the grid.
• Advanced Energy Storage and Power Electronics: Innovating in the realm of battery management or developing next-generation power converters to reduce losses in energy transmission.

Develop a Prototype or Proof-of-Concept:
Deep-tech ventures typically require early evidence of feasibility. Begin with a small-scale prototype or a detailed simulation that demonstrates how your idea could solve a real-world problem. This can involve:

• Building a lab-scale model of a microgrid or an energy conversion system.
• Simulating the integration of distributed renewable energy sources with advanced control algorithms.

Leverage Interdisciplinary Collaboration:
While your expertise is in electrical power engineering, deep-tech projects often benefit from collaboration with experts in fields like machine learning, materials science, or control systems. Consider:

• Attending industry conferences, hackathons, or joining online communities (for example, deep-tech forums or accelerator programs) to find potential collaborators.
• Reaching out to academic research groups or participating in government-funded research programs that focus on energy innovation.

Explore Funding Opportunities and Mentorship:
Deep-tech projects usually require significant R&D investment. Look into:

• Government grants (such as those offered by energy departments or innovation agencies) specifically targeting renewable energy, smart grids, or advanced materials.
• Accelerator programs or venture funds focused on deep tech, which can offer both funding and valuable mentorship.
• University or corporate partnerships that help share R&D costs while providing access to specialized equipment and research facilities.

Build a Business Case Around Your Innovation:
Once you have a working prototype or simulation, work on validating your idea in the market:

• Conduct pilot projects with local utilities or energy companies.
• Gather data on performance improvements, cost savings, or environmental benefits to build a compelling case for commercialization.

Continuous Learning and Adaptation:
Deep-tech innovations often require staying updated on rapidly evolving technologies. Consider further education or online courses in adjacent fields such as machine learning, AI integration for control systems, or advanced materials, which can help you refine your product.

Deep tech startups, as defined on Wikipedia, are characterized by solving complex scientific or engineering challenges through long-term R&D and substantial capital investment.

Your background in electrical power engineering places you in a unique position to drive innovation in the energy sector. By focusing on a specific problem, developing a proof-of-concept, and building strategic partnerships, you can begin your deep-tech journey — even as a solo founder, though collaboration can often help accelerate progress.

These steps can guide you from your current expertise into the world of deep-tech entrepreneurship, where your technical skills can directly contribute to solving real-world energy challenges.