An article recently published online with the title “Europe needs more scientists in VC to become a deeptech powerhouse – Tech.eu” highlights the fact that the problem deep-tech startups are facing is still not widely understood. A good understanding of the problem a deep-tech startup addresses with its technology can be mediated by a better process within the startup (a significant part of our—TD Shepherd—work is to “format” a startup’s focus into a story the outside world can understand, connect with and “own”). Therefore, the real problem is not solved by bringing more scientists into the VC teams—they would quickly lose their skills and signify a loss to the engineering community. What the deep-tech startups do need are venture funds with a significantly longer lifetime and deeper pockets – it is as simple as that. The availability of sufficient venture capital over the lifetime of a deep-tech startup (for instance, a fabless semicon startup will, on average, exit after ten years and a total investment of € 50-60M). While the availability of seed/early-stage capital is becoming easier (although the amounts remain (significantly) lower as compared to the USA), the later-stage rounds are increasingly difficult for EU-based deep-tech startups. That is where the real problem is located, not the lack of scientists in the VC community.
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The TD Shepherd team is happy to congratulate the Qualinx B.V. team on successfully raising €20 million from Dutch investors. TD Shepherd has provided strategic support to Qualinx over the years (starting in 2018), witnessing each step of their journey; their growth and success, makes us truly proud of their outstanding achievements.
If there’s one thing we’ve learned about surviving the Valley of Death in deep tech, it’s this: don’t go it alone. This stage is all about leveraging relationships, and corporate partnerships can be your most valuable lifeline. The key is to think beyond customers.
The so-called “Valley of Death” in deep tech isn’t just about running out of cash—it’s about navigating a period where expectations clash with reality. Investors want to see traction, but your tech isn’t market-ready. Customers are intrigued, but they’re not ready to commit. And your R&D costs? They’re still burning through cash like it’s a bonfire.