The Art of Turning Deep Tech into Successful Business Ventures
In the realm of deep tech, innovation is just the beginning. The true challenge lies in commercializing groundbreaking technology to attract venture capital. Oftentimes, founders get caught up in perfecting the product, neglecting the crucial storytelling and positioning needed to captivate investors. To uncover what VCs are truly looking for, we spoke with investors focused on Quantum startups and Transformational AI, Intelligent Automation & Cybersecurity.
One recurring blind spot is the difficulty many deep tech startups face in crafting a strong business narrative that conveys the value of their technology effectively to both customers and investors.
The Power of Storytelling: Turning Technology into Vision
Christophe Jurczak, co-founder of Quantonation, emphasizes the importance of storytelling. He believes that a compelling narrative is what makes an idea investable. According to Jurczak, founders need to paint a big picture that captures the imagination of investors, rather than getting lost in the technical details.
From Features to Outcomes: Shifting the Focus
Richard St-Pierre from RippleCrest advices startups to move beyond listing features and instead focus on the outcomes. He highlights the importance of showcasing how a product solves real problems for customers, emphasizing the impact of the solution rather than just the technology itself.
Advocacy: The Missing Ingredient in Product-Market Fit
Yvon Roy from RippleCrest stresses the need for customer advocacy to demonstrate product-market fit. He looks for evidence beyond just sales pipeline, such as customer testimonials and industry validation, to gauge a startup’s commercial viability.
A Shift in Mindset: From Technology to Commercialization
Jurczak emphasizes the pivotal moment when startups must transition from technology development to commercialization. He believes that bringing in commercially minded talent is essential to scale and meet market demand successfully.
Creating Value Beyond Sales: Thought Leadership and Brand Building
Both VCs agree that thought leadership and strategic partnerships with industry players can significantly enhance a startup’s perceived value. Building a brand through compelling storytelling and impactful content can attract customers and investors alike.
Building Teams That Can Scale Commercially
St-Pierre and Roy stress the importance of a strong team in driving commercial success. They believe that a competent team, coupled with a clear commercialization strategy, is crucial for achieving long-term value and growth.
Conclusion: The Blind Spot Founders Must Address
Mastering the art of commercialization is key to the success of deep tech startups. By focusing on compelling storytelling, customer advocacy, and building commercially minded teams, founders can overcome common blind spots and position their startups for success in a competitive market.