Traction is a must in Deeptech

The deeptech sector is experiencing a remarkable transformation, marked by significant growth and increasing investments, reaching a staggering $38 billion last year. However, this surge in funding comes with heightened expectations from venture capitalists (VCs), who are demanding more than just innovative ideas. Startups in this space must now demonstrate tangible traction and revenue generation to attract investment.

Given these evolving expectations, here are essential strategies that deeptech startups should consider to improve their chances of securing funding:

1. Showcase your technical feasibility and product-market fit: 
Entrepreneurs need to be prepared to showcase the technical feasibility of their innovations through proofs of concept, prototypes or early-stage research. 
2. Emphasize Revenue Generation: 
VCs are keen on startups that can demonstrate early revenue. Focus on building a viable business model that showcases your ability to generate income. Highlight any existing customers or contracts as evidence of market traction.
3. Present Clear Growth Trajectories: 
Develop a detailed roadmap that outlines how your startup plans to scale. VCs want to see a clear plan for market penetration and expansion, along with realistic projections for growth. 
4. Foster Strategic Partnerships:
Collaborations with corporates and research institutions can validate your technology and provide pathways for growth. These partnerships not only enhance credibility but also demonstrate your startup's potential for real-world applications.

The deeptech funding landscape is poised for growth, but it requires startups to align, more than ever, their strategies with the evolving expectations of VCs on growth visibility based on traction and distribution strategy.