For most deep-tech entrepreneurs, a familiar fact: a deep-tech startup takes longer to commercialize than regular software-based and/or SaaS-based startups. The gap between proof of concept and actual revenue takes longer. The following graph provides some insight into why things take longer.
Most VCs focused on the deep-tech market are aware of this, and their fund structures and setups are designed to accommodate longer timelines. Nevertheless, during your early stages, you might have brought on board investors who are more regionally oriented and less experienced with the complexities and timelines relevant to deep-tech startups. Therefore, rule #1 is to provide accurate and timely updates while ensuring the longer-term strategic view is ALWAYS present.
This means that your company and management team use a dashboard that not only presents the upcoming milestone(s) and the progress on delivering these milestone(s), but also provides a clear view of the overall progress. Your dashboard also provides the broader strategic context in which these milestones are situated. It is to ensure that updates supplied while using the dashboard always present information within the global context of the company.
It means that your dashboard is not only used internally but also for communication with your investors/Board. Your monthly or quarterly meetings are centered around your dashboard. Maintaining it to ensure progress is visible is key to keeping your investors up-to-date and avoiding surprises. Did your prototype hit a new efficiency target? Did a pilot customer agree to a longer-term trial? These small wins matter, and they show you’re moving forward.
What your dashboard also achieves, with its tactical AND strategic view, is to ensure that the Management Team, investors, and Board members continue to align on the vision. Deep tech isn’t just a financial play; it’s about transformative potential. Your strategic view, as captured by the dashboard, reminds your investors why they backed you in the first place: they weren’t just betting on quarterly results—they were betting on the future. Continue to emphasize how your technology can redefine markets or create entirely new ones.
Investors often have connections that can help close your first big deal, secure pilot programs, or bring in industry expertise. If you involve them in solving a relevant problem, you are using the Board in a way it is intended to be used. However, effective communication is crucial in ensuring the Board can effectively address the problem presented to it. Hence, transparency and the ability to show the whole picture and context are essential to getting the correct answers in return.
The truth is, surviving the Valley of Death isn’t just about runway—it’s about relationships. Keep your investors engaged and aligned, and you’ll turn this challenging period into the foundation of your eventual success.
For most deep-tech entrepreneurs, a familiar fact: a deep-tech startup takes longer to commercialize than regular software-based and/or SaaS-based startups. The gap between proof of concept and actual revenue takes longer. The following graph provides some insight into why things take longer.
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.