Why Investing in Software Alone Won’t Solve the World’s Biggest Challenges

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Software has transformed industries. It has helped us connect, automate, and scale solutions at unprecedented speed.

But when it comes to solving the world’s biggest challenges such as climate change, biodiversity loss, public health crises, and industrial transformation, software alone is not enough.

At Ananda, we take a different approach. We do not start by asking, Is this a SaaS company?

We start by asking, What is the real-world challenge? And what does it take to solve it?

More often than not, the answer lies in the intersection of software and hardware. The most powerful impact solutions we see do not rely solely on code. They are grounded in the physical world, leveraging infrastructure, sensors, machines, laboratories, and physical presence to enable meaningful, scalable, and measurable change.

Take OroraTech, our first SpaceTech investment. Their goal is to help governments, insurers, and businesses detect and respond to wildfires in real time.

The strength of OroraTech is not just in their algorithms. It is in the satellites they build and operate themselves, equipped with proprietary thermal imaging sensors. These satellites capture high-resolution data that is simply not available through third-party sources.

Their AI models then process this data and transform it into actionable alerts and risk maps. The system works because they own the entire data stack, from hardware in space to software on the ground.

With EcoG, the challenge is not just installing more EV chargers. It is building a charging ecosystem that is intelligent, interoperable, and scalable.

EcoG’s hardware, specifically their embedded controller installed in every charger, forms the foundation. Their software platform connects, monitors, and optimizes performance in real time, helping energy providers and manufacturers build efficient, grid-compatible charging networks.

This dual structure is what enables EcoG to power the shift to electric mobility at scale. Without the hardware, the software would not have control. Without the software, the hardware would not be intelligent enough.

Real-World Infrastructure Drives Real Impact

Several of our Portfolio companies reflect this same principle.

  • Resistomap helps track antimicrobial resistance (AMR) in wastewater. Their software offers analytics and predictions. But those insights are only possible because of their lab infrastructure, which processes physical samples to produce the necessary biological data.
  • Mycolever is unlocking biotech breakthroughs using AI and computational biology. But their models are validated through physical lab experimentation involving real fungi, real chemicals, and real-world outcomes.
  • Ovom brings inclusive healthcare to underserved populations through digital platforms. Yet its reach depends on physical clinics, where care is delivered with trust and human interaction. The software scales the model, but the clinic builds the relationship.

Software Still Matters, But It Needs a Strong Foundation

Software is essential. But when we are addressing planetary-scale problems, hardware is often what grounds the solution in reality. It enables better data, better delivery, and ultimately, better outcomes.

Some investors shy away from hardware because it is seen as risky or capital intensive. At Ananda, we do not avoid complexity when it is necessary. We back ambitious founders building at the edge of both worlds, where digital intelligence meets physical infrastructure.

The Future Is Not Just Digital. It Is Physical.

If you are a founder, especially in deep tech, climate, or health, my message is this:
Do not hide the hardware. Do not downplay the physical side of your solution because you think it makes you less investable.

Show us how it works. Show us why it matters. Show us how it will scale.

We will meet you there with conviction, capital, and long-term partnership. Because the world’s biggest challenges will not be solved by software alone.

They will be solved by systems that combine digital insight with physical action.

And that is exactly the kind of future we want to invest in.

We are always interested in innovative and game-changing solutions to tackle societal and environmental challenges. Are you an entrepreneur with a big vision and mission to create something extraordinary? Get in touch.