Navigating Deep-tech: Insights from Industry Experts on Hardware Development and Commercialisation
Cape Town, South Africa — 5 Dec 2024 — Deep-tech presents a problem-oriented approach, focusing on solving addressing foundational challenges in society and industry, rather than simply being a collection of advanced technologies.
The path from concept to commercialisation in deep-tech ventures is not just about building innovative products; it is about solving complex, real-world problems through a multidisciplinary approach. While traditional technology ventures may focus on incremental improvements or software-driven solutions, deep-tech is marked by its commitment to fundamental challenges and transformative impact. To understand how these ventures differ, it’s essential to explore the unique attributes that set them apart and drive their progress from initial ideation to scalable solutions.
“While traditional technology ventures may focus on incremental improvements or software-driven solutions, deep-tech is marked by its commitment to fundamental challenges and transformative impact.”
The Four Core Attributes of Deep-tech Ventures:
1. Problem-Oriented Approach: Deep-tech ventures focus on impactful solutions that address large-scale issues. This problem-driven orientation attracts mission-aligned investors and strengthens societal impact.
2. Technological Convergence: Most Deep-tech companies combine multiple advanced technologies, blending science, engineering, and design to create groundbreaking solutions.
3. Physical World Orientation: With 83% of deep-tech ventures working on hardware-based products, they prioritise tangible solutions. This focus on physical product development makes structured hardware processes essential for achieving scalability.
4. Ecosystem Dependency: Deep-tech relies on a collaborative ecosystem of universities, research labs, and industry partners. This support network is vital for complex product development and scaling efforts.
At the Savant, we design our support model around these core attributes, recognising the unique demands and opportunities deep-tech ventures face and our tailored investment readiness programme, Build, provides structured mentorship, access to a robust network of partners, and resources specifically aligned to help deep-tech startups validate their technology, refine their business model, and secure investment.
The Path from Hardware Development to Commercialisation:
With the core principles of deep-tech in mind, the next step is developing these ideas into scalable, investment-ready businesses. The path to commercialisation in deep-tech is challenging and requires a structured approach that balances innovation with practical development.
SKEG—a trusted development partner on our programme— has designed a proprietary approach to guide hardware startups from discovery to commercialisation, which is described below.
Step 1: Discovery and Initial Exploration
This phase focuses on immersing stakeholders in the product’s vision and purpose, encouraging a collaborative examination of market assumptions, technical possibilities, and user expectations. By identifying the product’s unique value or “Decisive Competitive Edge,” teams create a roadmap that not only clarifies the product’s goals but also establishes a clear path forward for development. This foundational step is critical in defining the strategic “WHY” behind the product, setting the stage for testing and prototyping.
Step 2: Experimental Prototyping
In this stage, the goal is to de-risk the project by testing core technical functionalities and gathering early market feedback through a Proof-of-Value (POV) prototype. Unlike a Minimum Viable Product (MVP), which is often built to quickly test a simplified, usable version of a product with end-users, an experimental prototype is primarily focused on validating the technical feasibility and core features of the concept without being market-ready. The POV prototype allows developers to address technical and market risks early, ensuring the product resonates with its target audience while remaining flexible enough for adjustments. This phase typically involves testing key components, exploring initial design concepts, and assessing any technical limitations, helping the team to pivot if needed before advancing to more refined stages.
Step 3: Alpha Prototyping
Once initial feedback validates the product’s core concept, teams move on to the Alpha phase, creating a market-representative prototype. This prototype is more refined and integrates essential mechanical, electronic, and industrial design elements, including usability, styling, and ergonomics. The Alpha prototype serves as a tangible, fully-functional model, allowing for further in-depth testing while offering a glimpse into the final product’s look and feel.
Step 4: Beta Prototyping
Beta prototyping is often the final step before full-scale manufacturing. This phase involves building multiple prototypes for comprehensive consumer testing, allowing developers to gather critical feedback on real-world use. With Beta units, teams can collect statistical data on user interactions and product performance, making minor refinements as needed. After final adjustments, the design is typically “locked,” and the product is ready for larger-scale production.
Step 5: Industrialisation & Manufacturing
With a validated and finalised design, the focus shifts to scaling production efficiently. This phase includes optimising the manufacturing process, ensuring quality control, and establishing supply chains to support high-volume production. By considering streamlined operations, packaging, and market launch strategies, the product is prepared for a successful introduction to the market, completing the journey from concept to commercialisation.
Brilliant Engineering Behind AirPods
Commercialisation and Securing Early Customers:
For startups, successful commercialisation is about more than just getting a product to market; it requires finding the right early customers who can validate the product and support iterative improvements. Rather than prioritising rapid customer acquisition, which can lead to unsustainable scaling, it’s essential to identify initial customers who align with the venture’s goals and provide valuable feedback.
Deep-tech ventures should focus on securing early customers who can help validate business assumptions and allow for refinement. Through the Savant Build Programme, we guide ventures in targeting and building relationships with these strategic customers. Our mentors help founders find partners who are invested in the product’s development, creating a foundation for sustainable growth and scalability.
Navigating Commercialisation, Securing Early Customers, and Crafting a Compelling Investment Case for Deep-tech Ventures:
The Savant Build Programme equips deep-tech founders with the tools and guidance needed to navigate the critical path from product development to market readiness. We support founders in identifying and building strategic relationships with early adopters who align with the venture’s vision. By fostering partnerships with customers committed to the product’s success, the programme helps ventures achieve early product validation and establish a foundation for sustainable growth and long-term market traction.
Crafting a Compelling Investment Case
An essential component of the programme is crafting a compelling investment case. Deep-tech ventures often face unique challenges in communicating their mission, the significance of their innovation, and their roadmap for scaling. Through the Savant Build Programme, founders gain mentorship and resources to develop a strong narrative, clearly defined value propositions, and thorough risk assessments. This empowers ventures to effectively communicate their immediate impact and long-term potential, resonating with investors who may be new to deep-tech but are intrigued by its transformative promise.
Bridging Founders and Investors for Lasting Impact
By transforming complex innovations into accessible, high-impact stories, the Savant Build Programme bridges the gap between founders and investors. This structured approach not only attracts aligned investors but also fosters sustainable growth, positioning ventures for successful scaling and lasting impact in the deep-tech ecosystem. The Savant Build Programme stands as a critical resource, guiding founders through each stage of commercialisation to help them secure the capital and partnerships needed to bring groundbreaking innovations to market.
Ready to take your deep-tech venture to the next level?
The Savant Build Programme offers the funding, mentorship, tools, and resources you need to navigate the path from concept to commercial success.
Join a community of world-class innovators shaping the future—apply [HERE]
References
- SKEG. (2023). SKEG’s proprietary approach to hardware development.
- GoingVC. (2023). “Everything You Need to Know About Investing in Deep-tech: Navigating the Cutting Edge.” Retrieved from GoingVC Blog.
- Beneinstein, B. (2023). “The Illustrated Guide to Product Development: Part 4 – Validation.” Retrieved from Beneinstein Blog.
- Bolt. (2023). “Your First B2B Customers.” Retrieved from Bolt Blog.
- A.G.L. (2023). “Understanding the Deep-tech Investment Landscape and Ecosystem Challenges.” Retrieved from Springer Link.
