Recent research indicates that deep tech startups spearheaded by technical CEOs typically attract larger funding rounds. This insight holds value for Software as a Service (SaaS) creators aspiring to elevate their fundraising strategies. The study suggests that the presence of a technically skilled leader could offer an edge while hunting for substantial financial backing.
These founders could utilize Point Nine’s ‘napkin’ methodologies to secure hefty investments. These strategies simplify complex business models, presenting a graspable and appealing prospect for potential investors.
In Europe, First Momentum extends financial support for deep tech teams committed to hardware development. This pre-seed fund targets technical B2B and deep tech startups in particular. The venture capital firm in Germany provides critical guidelines for those embarking on their entrepreneurial journey, covering areas like fundraising, team building, and product and market development.
A survey conducted by First Momentum involving 30 deep tech venture capitalists across eight countries revealed that startups helmed by technical CEOs usually secure more funding than those led by business-focused executives.
Technical expertise boosts startup funding, research highlights
This insightful study is expected to cause ripple effects, potentially shaking up the extant startup leadership narrative and shedding new light on investment patterns.
Despite potential biases in the survey, First Momentum highlights the value of technical founders adding business-related skills to their repertoire. This and their technical knowledge can help them better understand their startup’s operations, enhance decision-making, and improve problem-solving abilities. This also facilitates streamlined communication with stakeholders and investors, solidifying overall business relationships.
The study also underlined the unique characteristics of the deep tech sector, namely the requirement for high funding levels and long success timelines. The research also pointed to a noticeable increase in pre-seed funding for deep-tech hardware startups in 2023 compared to the previous year, suggesting a surge in investor interest.
Besides offering a comprehensive understanding of future market trends and industry requirements, First Momentum supports deep tech startups in improving their technological capabilities, managing intellectual properties, and refining their prototypes. It also aids in overcoming regulatory challenges and secures relevant permits. Furthermore, it facilitates collaboration opportunities with potential investors and stakeholders.
