Over the last 5 to 7 years, we have seen more and more startups that have defined their ambition based on an earlier exit point as compared to most Deep-Tech startups.
Rather than setting their ambition goals on a certain market share and a revenue target, they set their ambition on being high-volume (HV) ready and, at that point, find a suitable “mothership”. There are several reasons why this strategy is seeing more adopters. Most important is the lengthy path for a Deep-Tech startup to reach that “market share” objective. That path might take 8-10 and sometimes 12 years with a high number of venture rounds which dilutes their original ownership to a thin percentage. Markets might change, the venture capital scene might change, etc. Therefore, planning for a 3-5 year path to bring a product to the high-volume marker and at the same time looking for a suitable acquirer where the product would fit with the acquirer’s marketing and sales organization not only secures a much faster exit but also a more secure one. Despite the obvious lower valuation, founders hold a much larger percentage of the company’s outstanding share capital.
TD Shepherd congratulates the Intrinsic ID team on their recent acquisition by Synopsys, a leading US EDA company! Intrinsic ID, a cybersecurity specialist with its roots deeply embedded in Eindhoven…
TD Shepherd is thrilled to congratulate the exceptional team at Innatera Nanosystems on the successful closing of their recent investment round, raising an impressive 15 million euros!
Artificial Intelligence (AI) has been making headlines for several years now, and it’s potential to transform industries and change the way we live and work is becoming increasingly clear.