MIT Sloan Management Review Article on Radical Innovation Needs Old-School VC

Scientists and entrepreneurs working on the world’s most urgent problems can’t solve them without funders who understand deep-tech opportunities and take long-term views.

When did risk capital start playing it so safe?

We currently have an abundance of venture capital for projects that are not that risky, such as platforms and apps that promise to make our lives more convenient. These innovations largely disrupt markets and competition — but don’t disrupt the biggest problems facing humanity. We don’t have enough green energy options, and we lack the technology that could suck enough CO2 out of the atmosphere to restore the climate’s balance. According to the United Nations, more than 800 million people — a tenth of the global population — are undernourished today. We don’t know how to cope with a growing world population or stop overexploiting natural resources.

About the Author

Thomas Ramge is an associate researcher at the Einstein Center Digital Future in Berlin, the author of multiple books, and the host of the Sprind podcast. Rafael Laguna de la Vera is the founding director of the German Federal Agency for Disruptive Innovation (Sprind), a founder of several software companies, and a cofounding partner of the Code University of Applied Sciences in Berlin.

Learn more about MIT SMR.