Science-based innovation and deep tech represent beacons of hope – thrilling advances at the frontier of science and technology, from new materials to synthetic biology, fusion energy, quantum computing, and beyond, with the potential to address the most pressing and complex challenges of our time.
Deep-tech founders are the visionaries who bring these technologies to the market through startup ventures that pioneer new economic opportunities. But, of course, there are challenges.
One is amassing the significant amounts of capital that these ventures require. Another is building the leadership skills – and the approach – to make them work. Leading these kinds of ventures is very different from managing a lab or even founding and scaling conventional digital or software startups.
From our interviews with deep-tech founders, investors, and board members from across the US and Europe, we have distilled five key lessons for those making the career transition from building a deep-tech lab at the frontier of science to becoming a deep-tech entrepreneur
Here they are.
Deep-tech founders require more than technical expertise. They will need relentless passion, unwavering commitment, and, above all, resilience. While these qualities are essential for all types of entrepreneurs, they are especially important for deep-tech founders who face a dual challenge.
First, these founders must be ready to venture into areas far removed from standard, daily routines – writing publications and grant proposals, presenting to other experts, not generalists, and letting their advances speak for themselves. Instead, they will need to shift to a much broader set of activities and operate in a new world, with a limited playbook and few role models.
Second, unlike the much shorter cycles in fields like digital startups, with well-defined customer problems and established technology platforms, deep-tech ventures are first-of-a-kind.
Such ventures bear significant technological and commercialization risks as well as extended timelines, requiring depths of persistence and commitment to bring core scientific discoveries from the lab to the market. This often involves overcoming significant skepticism, time, effort, and sometimes personal cost.
As founders, scientists must ask themselves: How badly do I want this? Am I willing and able to forge my own path to success?
Deep-tech entrepreneurs need to be resilient and have perseverance, but they will also need to know when to stop and avoid fooling themselves when things do not work out as expected. The ability to withstand setbacks and stay focused on their North Star, the core problem their technology aims to solve – these things are vital.
“For scientists, this means understanding market needs and focusing on solving real customer problems rather than simply developing sophisticated technologies in a vacuum.”
Given the long timelines and high capital requirements, deep-tech founders should develop a clear vision and a deep understanding of the problem space early on. For scientists, this means understanding market needs and focusing on solving real customer problems rather than simply developing sophisticated technologies in a vacuum.
Entrepreneurs should utilize frameworks like the Heilmeier Catechism, named after former DARPA director George H Heilmeier, to evaluate their invention’s potential for market success. By answering fundamental questions about the invention, its necessity, current alternatives, and its unique advantages, they can gain a clearer understanding of its viability.
Moving forward, programs like the US National Science Foundation’s Innovation Corps (I-Corps) program require founders to conduct at least 100 interviews with potential customers to further explore the value of their invention in a problem space.
“You’ve got to go out and talk to people, period,” highlights Leon Sandler, former Executive Director of the MIT Deshpande Center.
At the same time, founders should converge on a small number of market opportunities where their solution can truly make a difference, carefully balancing nearer-term markets (so-called beachhead markets) with those that have significant long-term potential. This will mean understanding what existing solutions there are already within their problem space.
These insights involve reverse-engineering incumbent technologies, studying their functionality, and identifying their strengths and weaknesses to be able to convince potential customers of the value proposition of a first-of-a-kind deep tech.
Olivier de Weck, Professor of Astronautics and Engineering Systems at MIT, said, “Because your technology that you think or hope is going to be so superior, is going to compete against those incumbents. Unless you have deep knowledge of who you’re competing against, you might waste many years of your life.”
Boston Metal co-founder Donald Sadoway adds, “I always tell people, the market is a cruel arbiter, the market doesn’t care about your journey, the market doesn’t care about how hard you tried. All the market knows is I’m not going to pay that much for this performance.”
A supportive innovation ecosystem and underlying social network are crucial support mechanisms for deep-tech founders. They cannot win alone.
A well-integrated ecosystem includes other startups, universities, corporations, venture capitalists, and government bodies. This involvement helps uncover market opportunities that are not immediately apparent and provides access to valuable insights, feedback, and mentorship. Also, in deep tech, securing funding goes beyond traditional venture capital.
Thus, being part of an ecosystem provides access to diverse funding sources, from government grants and corporate partnerships to specialized deep-tech investors and high-net-worth individuals. As Alita Carbone from Impact Science Ventures summarizes, don’t do it alone. “Become part of an embedded ecosystem, from customer partners to financing partners, and right to intellectual capital partners. Create as big an ecosystem of support as you can and leverage the power of existing incubators or accelerators and their programs.”
More diverse than the networks usually built by academic scientists, deep-tech founders must seek peer-to-peer advice from experienced startups, mentors who have navigated the deep-tech journey, as well as industry experts can help entrepreneurs avoid common pitfalls and make informed decisions about commercializing and scaling deep tech, which is very distinct from building it in a lab.
While virtual interactions and networks have proven effective, being physically based in a deep-tech cluster like Cambridge’s Kendall Square or the Greater Munich area can be crucial.
In these environments, you inevitably bump into someone helpful to your idea. This leads to chance connections and unexpected market opportunities.
LabCentral founder Johannes Fruehauf loves this kind of serendipity. “It is like this pressure cooker, where density increases the likelihood of collisions. When I walk down Main Street in Kendall Square, I guarantee I meet five people that – maybe I had not thought of- seeking them out for advice, but I know them. Now, I can have this quick interaction with them that may help me solve a problem I’m facing with my startup.”
In the early stages, especially, it can be beneficial to join structured programs that are also often directly hosted in these deep-tech clusters. Depending on the maturity of the idea, programs such as the University of Toronto’s Creative Destruction Lab, Germany’s Federal Agency for Disruptive Innovation SPRIN-D’s Challenge program, or The Engine’s Blueprint program provide founders with further opportunities to connect with various mentors and regularly exchange, challenge, and further shape their venture ideas.
Lastly, it is crucial to establish a knowledgeable and carefully selected advisory board, ideally composed of people with complementary skills, early in the startup’s development. Such a board will be another source of valuable input and continuous feedback as the venture matures.
Deep-tech founding teams are often composed of scientists driven by a strong vision and passion for their research. However, they tend to be more reluctant (or not as well versed) when it comes to the crucial aspects of running a business. They may have little experience in implementing procedures and building a corporate culture. What’s more, the earliest hires in deep-tech startups will typically have technical profiles, with fewer roles dedicated to other important areas necessary for building a successful company.
For the sustainable growth and success of a company, of course, it is crucial to establish processes and a company culture from the start. Implementing these aspects later is challenging. Asked what she would do differently if she could start her company again, Danielle Colson, co-founder of Mantel Capture, says, “I would focus a lot on building processes early, a lot of that stuff seems a little silly when you’re three people, move very quickly; you need to have a policy for, how people take vacation, how people are going to get benefits, what those benefits are – and those kinds of things which matter, it’s very hard to go back and do these like retroactively.”
Storytelling bridges the gap between complex technology and the market's understanding of its potential impact, establishing legitimacy.
Becoming a successful deep-tech startup means telling a compelling story.
Founders shouldn’t assume that the scientific excellence of their invention alone will guarantee market success. While deep-tech entrepreneurs often emphasize the technical aspects of their innovations, the ability to effectively communicate the USP of their technology to various stakeholders is equally crucial.
Storytelling bridges the gap between complex technology and the market’s understanding of its potential impact, establishing legitimacy. This approach benefits customers, generalist investors, and other stakeholders by making the technology more accessible and clarifying its potential impact, also for those who do not come from a science background. It makes it easier to gain support and drive adoption, which is essential for success.
Gene Keselman, the Director of MIT’s venture studio Proto Ventures, puts it like this: “I think storytelling is the most important skill for anyone in the C suite. The ability to tell the story of the company, to tell the story of the startup, connect with the customers around the story, make it something that people relate to, and understand the language of the customer, is a crucial skill. Many times, not something an engineer or a scientist is good at.”
Engaging a “chief storyteller” or a strong marketing person early on can be a crucial strategic move for deep-tech startups, yet the relevance of the role is still often not taken seriously.
To solve the multi-faceted, shifting, and increasingly complex problems that face our economies and societies, it will be critically important for talented deep-tech entrepreneurs and innovators to harness advances and discoveries – and mold them into successful ventures. The five lessons outlined here may help these change-makers make that transition.
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