The Flip Side Of Becoming A Deep Tech Unicorn

A unicorn surrounded by electronic components

In recent years, the term “unicorn” has become synonymous with startups that achieve a valuation of $1 billion or more.
These companies are often lauded as the epitome of success and innovation. However, when it comes to deep tech startups, there is a flip side to this story. While reaching unicorn status may seem like the ultimate achievement, it is not always as beneficial as it may appear. In this post, we will explore the darker aspects of becoming a unicorn in the deep tech sector.

Unrealistic Expectations and Pressure: 

Once a deep tech startup attains unicorn status, the expectations and pressure to maintain growth and profitability skyrocket. Investors and stakeholders anticipate massive returns on their investments, which can lead to an intense focus on short-term gains rather than long-term sustainability. This pressure can hinder a company’s ability to take risks, explore new avenues of research, or invest in fundamental research and development, ultimately stifling innovation.

Talent Drain and Recruitment Challenges: 

A “unicorn” often attracts attention from larger, established tech companies. These companies offer lucrative compensation packages and greater stability, making it difficult for the unicorn to retain top talent. Losing key employees can significantly impact a startup’s ability to maintain its competitive edge and deliver on its promises.

Market Oversaturation and Hype: 

The deep tech sector is highly competitive, with numerous startups vying for attention and funding. As a unicorn, a deep tech company can inadvertently contribute to market oversaturation and hype. Investors may pour large sums of money into similar technologies, leading to an artificial bubble that can burst when expectations fail to materialize. The resulting market correction can have far-reaching consequences, affecting not only the unicorn but the entire deep tech ecosystem.

Ethical Dilemmas and Social Impact: 

Deep tech startups often work on groundbreaking technologies that have far-reaching societal implications. When a company achieves unicorn status, the pressure to generate returns can overshadow ethical considerations and the potential societal impact of its technology. This can lead to compromises on privacy, security, or responsible development practices. The pursuit of profit at all costs can undermine the ethical foundations of a deep tech startup, eroding public trust and leading to regulatory scrutiny.

Distorted Innovation Focus: 

Becoming a unicorn in the deep tech space can shift a company’s priorities away from genuine innovation towards maximizing valuations. Startups may feel compelled to chase growth metrics and follow popular trends rather than focusing on true technological breakthroughs. This can result in a dearth of fundamental research and development, limiting the long-term potential and transformative impact that deep tech companies can have on society.


While becoming a unicorn in the deep tech sector may seem like a dream come true, it is crucial to recognize the potential drawbacks and challenges that come with this achievement. Unrealistic expectations, talent drain, market oversaturation, ethical dilemmas, and distorted innovation focus are just a few of the issues that can arise.  Deep tech startups need to maintain a balance between growth and sustainability, prioritize long-term innovation over short-term gains, and never lose sight of their core values and societal impact.

Vous pouvez aussi aimer

A computer chip enclosed in a planet

Typical Challenges of Early Stage Deep Tech Startups

What makes the situation more difficult for Deep Tech startups than startups from other domains is the fact, that by the complexity of the Deep Tech sector, a founding team usually requires expertise from various technical roles and therefore is multi-disciplinary in the technical domain already.

Lire plus

Navigating Deep Tech: Crafting an Effective Online Presence

How many times have you visited a website, desperately searching for information, only to shut it down in frustration because you couldn’t find what you were looking for? In the rapidly evolving landscape of the deep tech industry, managing your online presence is not just a formality – it’s a strategic imperative.  

Lire plus
Close-up of hand holding tablet

Satisfy to Retain: The Deep Tech Churn Rate

The churn rate refers to the percentage of customers or clients who cease using a particular product or service within a given period. This metric is crucial and, in most cases, is one of the key KPIs tracked by a company.

Lire plus