The “Diving into Deep Tech” event hosted by Hamburg Invest and the A&O Shearman law firm focused on the risk and opportunities of setting up a deep tech startup and what s to be consider when looking for investors. The following is a summary of the key points.
Making deep-tech startups attractive to investors
1. Staying power, solid financial resources, team composition and stability
2. Realistic market assessment: some innovations may be premature while others may become outdated by the time they reach market maturity
3. Where do the rights to a technology lie? Are they protected by patents and can they be protected?
What does it take to invest in a deep tech startup?
1. Careful examination
2. Reassurance that a startup is not giving up too much equity too early
3. Sufficient leeway for high-value funding rounds
The chances of success are above average as soon as a growth path has been chosen. Deep tech attracts particularly wealthy customers such as the government and generates higher profits. This is something that venture capitalists have long since acknowledged. Some 35 per cent of their investments across Europe are in deep tech.
