What are investors looking for in a deep tech start-up?

 

Deep tech companies invent path-breaking technology to solve global problems. Technology is at the heart of these companies. Highly skilled engineers are key resources in a deep tech company, since they work on futuristic technology, solving problems that are yet to be solved and creating valuable Intellectual assets. Having worked with a few Venture Capital Firms that invest in deep tech startups, and their portfolio companies. we have observed that the startups that raised funding fall into the following categories : 

1. The Creators  

These entrepreneurs create innovations to solve problems not only in India but globally. They recognise opportunities and build the right product. Their innovations have the potential to build a scalable and defensible business. 

 

2. The Disruptors

These entrepreneurs do not hesitate to alter existing innovations in a manner that creates radical change in the market/ industry. 

 

3. The Risk Takers 

These entrepreneurs are brave and tread on a path less taken. They focus on solving problems that most companies would shy away from. They seldom pay heed to the noise and diligently build their business relying on their knowledge and intent.  

 

4. The Improvers 

These entrepreneurs observe and know about the existing solutions and find ways to take them to a different level, using cutting-edge technologies like AI/ML. They make stellar improvements to the innovation and are able to achieve it for much less of the cost of the existing innovation, thereby making the solution available for cheaper too. 

 

5. The Experts 

These entrepreneurs are masters of their fields. They possess deep insight and knowledge of the workings of their innovations, the possible applications, the demand, and the pulse of the industry. 

 

When such deep tech startups approach the investor, they get guidance on transforming their innovations into valuable IP assets that enhance the startup’s valuation and generate competitive advantage. The investors also conduct due diligence that includes a verification of IP ownership, and freedom to operate, in order to minimize risks of infringement of third-party patents. During the course of IP due diligence, if they found out that critical innovations are not patented, they have connected us to startup founders to make them ready for funding.

 

If you are a deep tech start-up founder and possess any or all of the above qualities, we reckon you stand a good chance of being funded by a Venture capitalist firm. We do hope that you have done your due diligence for all the intangible assets you own and have secured protection, so that you cross over this important hurdle and come across as thorough and prepared for investment. If you are yet to do that, please reach out to team Metayage by sending an email to ip@myipstrategy.com 

Metayage