For a deep tech start-up to succeed, partnerships with larger corporations are essential
Deep tech start-ups are relevant
Deep tech start-ups are expected to have a large influence over the United Nations’ Sustainable Development Goals (SDGs). Those of note include contributions towards health and well-being, industry, sustainable cities, responsible consumption, and production and climate action.
Deep technology is based upon finding solutions to problems with a global impact that may not have arisen yet. It disrupts existing markets by changing how we operate and respond to both technological and scientific challenges. It’s a key part of how we advance our scientific and technological knowledge across many different industries.
Deep tech start-ups look for corporate partners
Deep tech start-ups are expected to face many challenges. For example, deep tech relies on innovation, which also welcomes patentable technology and many subsequent hurdles to take the product from research to market. This means it’s a lengthy process which requires larger amounts of investment capital to stay afloat, combined with the possibility that the research doesn’t work as expected.
Larger corporations not only have more experience with understanding market needs, intellectual property law and fundraising, but are also a key point of business guidance for deep tech start-ups venturing into a competitive sector.
One of the most in-demand factors that a deep-tech start-up looks for is a corporate partner, especially as it can be difficult to hit the ground running. Only around 10% of start-ups look for university funding, proving that corporations are still the most in-demand form of partnership.
Funding is a top consideration for deep tech start-ups as one of the main drivers of their progress. According to BCG, 80% of start-ups consider it in their top three priorities when looking to secure a partnership. They also highly value market access, technical expertise and business expertise.
From both sides of the partnership, there’s a lot to consider and a well-considered and well-defined partnership is more likely to succeed. They’re presented with a lot more opportunities to choose from and are at an advantage when deciding where to invest next.
However, partnerships with corporations can be difficult to secure. From inadequate preparation on the side of the start-up to both parties failing to define the limitations and vision of their business partnership from the start, a lot can go wrong.
Open doors to the future with The Collider
Ensuring that the most innovative and promising deep tech start-ups find the funding they deserve, The Collider venture-building programme, powered by Mobile World Capital Barcelona, aims to drive the transformation of society through tech transfer initiatives.