Deep tech companies are those that provide technology solutions based on substantial scientific or engineering challenges such as drugs and pharmaceuticals and even autonomous delivery vehicles.
In a recent podcast episode, Product Development Specialist, Ernest Daddey shared some valuable insights on the main mistakes he’s come across from companies in this space, as well as key learnings that can benefit other aspiring entrepreneurs.
Mistakes to Avoid
Lack of Business Focus: Entrepreneurs can sometimes overlook the importance of understanding the business process, go to market strategy, marketing, and capital requirements for scaling their product. It is crucial to shift focus from working in the business to working on the business.
Overemphasis on Pitching: Startups often get caught up in constantly pitching their ideas without giving enough attention to building a solid foundation for their business. Instead of solely focusing on pitching and presenting, it is essential to define how your product is different and work on developing technical solutions.
Failure to Establish Relationships: Building strong relationships with industry players can greatly benefit deep tech businesses. By finding partners who can champion your product and act as go-to-market strategies or loudspeakers for your solution, you increase your chances of success.
Misunderstanding Patentability: Entrepreneurs sometimes misunderstand what is patentable about their technology or overestimate its patentability. It is important not to assume that everything can be patented without proper evaluation.
Inadequate Patent Management: Obtaining patents is just one part of the process; effectively managing them is equally important. Lack of resources or mismanagement may result in losing ownership of valuable patents.
Key Learnings
Starting a deep tech business may require substantial resources initially, but it is not impossible to bootstrap. With careful planning, learning from mistakes, focusing on customer needs, differentiation strategies, effective patent management, and leveraging networks for support – aspiring entrepreneurs in this field can increase their chances of building successful businesses that bring innovative solutions to market.
Start with Customer Needs: Understanding customer needs should be at the forefront when developing deep tech products/services. Creating scalable solutions that offer unique features and benefits allows customers to flourish in their own businesses while potentially funding further development.
Differentiation is Crucial: In a competitive market, differentiation is key to standing out. By focusing on the unique features and benefits of your product, you can attract customers and build a successful business.
Think Beyond Existing Players: Deep tech entrepreneurs should consider why larger companies with more resources aren’t already pursuing their ideas. Identifying gaps in the market and understanding why bigger players haven’t addressed them can provide valuable insights for success.
Networking and Collaboration: Building a strong network of contacts within the industry can open doors to opportunities, partnerships, and support. Engaging with like-minded individuals through networking events or accelerators/incubators can help foster growth and success in deep tech entrepreneurship.
Remember: Start with a clear vision of your product’s value proposition; work diligently on your business rather than just being occupied within it; establish meaningful relationships within industry players; understand patentability before pursuing patents; manage patents effectively once obtained; prioritise customer needs while offering differentiation; think beyond existing players’ limitations; leverage networking opportunities for growth!
You can listen to the whole conversation over on the podcast: https://atomcto.com/2023/09/06/deep-dive-into-deep-tech-building-and-scaling-companies-with-ernest-daddey/