From Tech to Deep Tech

Public sector: Funding and market access
Deep-tech startups often seek government
support for initial funding, but less often for
market access. Yet the application procedure
and potential benefits (besides financial
support) associated with public funding
contrast sharply with those of early-stagefunding
alternatives such as angel investor
support.
Although surveyed startups did not generally
view government as a go-to source of access
to markets, public policies can help shape
legislation and regulations that encourage
the market for innovations and advance
innovation use in the economy overall,
provided that the policies are adapted to the
startups’ business model and needs.¹
In many instances, governments also help
companies access the markets—through
export support programs, for example.
Business angels: Funding and business
expertise
Angel investors are individuals who invest
in startups at an early stage, usually in
exchange for equity or convertible debt.
More than 20% of the surveyed deep-tech
startups said that they had benefited from
angel capital, and 25% rated angel investors
as their preferred funding partner.
As experienced entrepreneurs who have built
successful companies and want to remain
in the scene, angel investors are familiar
with the field and may be especially good at
identifying potentially successful companies
at an early stage, having survived the ups
and downs of their own entrepreneurial path.
Many angel investors actively advise young
entrepreneurs, too. As mentors and advisors
they provide valuable business knowledge,
and offer access to their networks.
Venture capital: Funding and market access
In view of the high risk and massive
investment needs associated with deep
tech, VC funding is a natural choice for many
startups. However, we found evidence of a
recurring mismatch related to VC funding.
Among startups that have not received
any VC funding yet, 35% said that they
considered the possibility of misalignment
with regard to vision and objectives to be a
key roadblock to such partnering. Still, only
20% of startups that actually had received VC
funding experienced friction on the subject
of vision and objectives alignment. The
importance of transparency emerged as an
important issue in the survey.
Universities: Technical expertise, talent, and
access to facilities
Deep-tech startups tend to view universities
as sources of tech expertise and talent, and
to a lesser extent as places that provide
access to facilities.
Universities have long pondered how to
increase the knowledge transfer from their
research. Today, the primary conduits are
tech transfer centers; but universities can
also unite alumni with current students and
researchers. Accelerating those networks
and fostering interdisciplinary efforts can
help ensure linkage between the university’s
expertise and people who are building
companies and looking for talent.
¹ See Innovation Policy Platform, “Innovation Procurement Schemes,” available at https://www.innovationpolicyplatform.org/content/
innovation-procurement-schemes; Elvira Uyarra, “Opportunities for Innovation Through Local Government Procurement” (NESTA, May 2010),
available as a PDF download at https://www.nesta.org.uk/sites/default/files/opportunities_for_innovation_through_local_government_
procurement.pdf; and NESTA, 2007, “Driving Innovation Through Public Procurement (NESTA, February 2007), available as a PDF download at
https://www.nesta.org.uk/sites/default/files/public_procurement.pdf.
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