Deepsense

What will investors typically ask for or expect during science-tech due diligence? (Part 4/8) Part IV of our series on what investors typically ask or expect during science-tech due diligence focuses on the elements of functional performance (breakthrough assessment), and ease of use. For an overview of the previous elements, download the free guide via the link in the comments. → Breakthrough and Functional Performance To create outlier returns, your solution must offer substantial improvements over existing technologies, whether in cost, efficiency, or sustainability. Investors will evaluate how differentiated your technology is and assess the risks associated with your solution’s ability to meet or exceed performance expectations compared to incumbents. → Ease of Use (Complexity) Investors will also assess the risks associated with industry adoption, including operational switching costs and how easily users can implement the technology. Make sure not to underestimate the real costs of switching: perceived risks of using a new solution from a startup, and any emotional attachment users may have to current methods do play a part. Next up: Part V on defensibility and intellectual property (IP). #techduediligence #deeptech #fundraising #vc #climatetech

What will investors typically ask for or expect during science-tech due diligence? (3/8) Here in part III of our series on what investors typically ask or expect during science-tech due diligence, we focus on timeline and timing. → Timeline As part of their fund structure, investors often have targeted exit timeframes. Based on their investment thesis, they will assess the expected time to market (TTM) or time to scale (TTS). Investors will form a view on how reasonable the proposed timeline is, from concept to commercial scale, including the learning curves for each major step. → Timing Investors will look for a strong, verified "why now?" to understand if your innovation is benefitting from favorable timing due to recent advancements, market shifts, or regulatory changes. For example, in space tech, falling launch costs have fueled a growing economy in orbit. As a founder or operator, you should clearly articulate why your innovation is relevant now and how it compares to 3 years ago or 3 years from now. Download the free full guide linked in the comments. This post is part of our "How to Prepare for Science-Tech Due Diligence" series. Next up: Part IV on breakthrough performance and ease of use. #deepsense #deeptech #sciencetech #startup #duediligence #fundraising #techduediligence

Our experts focused on these top areas last month: → In Climate Tech, Nuclear Fission has re-emerged as a topic of interest. Fission, the process of splitting atomic nuclei to release energy, provides a low-carbon alternative to fossil fuels. While concerns about safety, waste management, and public perception persist, advances in reactor designs and fuel cycle technologies aim to address these challenges. Next generation approaches such as Small Modular Reactors (SMRs) are paving the way for more flexible, scalable nuclear projects. This is part of a larger effort to redeem nuclear energy in the 21st century, with advanced technologies focusing on safety features, versatility for industrial uses, and cost competitiveness. Companies like NuScale Power and Terrestrial Energy are working on new models that promise safer, more efficient power generation. → Genomic sequencing has attracted attention in biotech and healthtech. This technology determines the order of DNA nucleotides in an organism's genome and plays a crucial role in personalized medicine and disease diagnosis. Advances such as next-generation sequencing (NGS) have made sequencing faster and more cost-effective. For example, sequencing a single human genome, which used to cost years and billions of dollars, can now be done in a matter of days for less than $1,000. These developments are expanding the accessibility and utility of sequencing in diverse fields, from CRISPR-based gene editing to epigenomics and population genetics. → In Advanced Computing, Optical Computing is gaining traction. This technology uses photons (light particles) to process and transmit data instead of traditional electrons. Optical computing promises faster processing, lower power consumption, and reduced heat generation. Progress in photonic integrated circuits and optical interconnects is moving this technology closer to practical applications in data centers, telecommunications, and high-performance computing. Looking into any of these areas? Get access to our leading science-tech and industry advisors for support with technical assessments and due diligence. #deeptech #venture #duediligence #science #tech #climatetech #healthtech #deepsense

What will investors typically ask for or expect during science-tech due diligence? (2/8) Part II of our series is the crucial topic of scaling. → Scaling - Technology Investors will focus on how the technology transitions from the current Technology Readiness Level (TRL) to real-world application. Specifically, they’ll assess the roadmap for addressing engineering risks and technical challenges in scaling up to commercial deployment. → Scaling - Manufacturing/Production Manufacturing readiness is key. Investors often use the Manufacturing Readiness Level (MRL) to measure how prepared the company is for mass production. Check out the MRL benchmarks in the accompanying image. MRLs assess supply chain resilience, infrastructure maturity, and the complexity of production processes. → Scaling - CapEx As many technologies require high capital expenditures (CapEx), investors pay close attention to expected costs and infrastructure requirements. They will evaluate whether the startup has a clear understanding of expected costs and infrastructure needs, and how CapEx will impact fundraising and dilution. Next up: Part III on timelines and timing. #deeptech #sciencetech #startup #duediligence #fundraising #techduediligence #vc #deepsense

What will investors typically ask for or expect during science-tech due diligence? (1/8) In the final part of our series, we share what founders and operators should prepare for during the due diligence process. The areas assessed can vary greatly, depending on the process, stage, and industry. At Deepsense, we structure science-tech due diligence around 11 (+2) core elements, tailored to the company’s fundraising stage, which work together to provide a comprehensive assessment. First up: Technology Readiness Levels (TRLs), which estimate the maturity of tech on a 1-9 scale. Despite this simplicity, TRLs are widely used, enabling investors to benchmark different technologies. During due diligence, experts compare the company’s self-analysis with data and expert opinions, examining program concepts, technology requirements, and capabilities. They also assess whether the TRL aligns with investor expectations and typical benchmarks for the fundraising stage. For more info on preparing for science-tech due diligence, download our full startup guide for free: https://lnkd.in/dQPuVxpG Next up: Scaling technology, manufacturing and CapEx. #deepsense #deeptech #sciencetech #startup #duediligence #fundraising #funding #techduediligence #vc

As the demand for faster and more energy-efficient computing increases, traditional systems are reaching their limits. This is where photonics steps in—a technology with the potential to reshape computing and transforming industries worldwide. Photonic computing, which harnesses the power of light instead of electrons, is being developed to overcome these challenges in use cases from telecommunications to healthcare and manufacturing to national security. Key developments such as silicon photonics are pushing the boundaries of data transmission, and both start-ups and large companies are driving innovation globally. However, challenges remain, from high initial costs to regulatory hurdles. Curious about how photonics could impact your industry? Read the issue: https://lnkd.in/essp5SB7 → We have Photonics experts from leading institutions. Reach out to us to get support with technical assessments of your next opportunity. #photonics #deeptech #AI #siliconphotonics #expertnetwork #semiconductors #techduediligence #photonicsrevolution

At 🔥THE HEAT on Friday? Join our workshop with Staffan Qvist and Finn Aretz to explore strategies for founders on science-tech fundraising readiness and effective due diligence for climate investors. We'll also be around our booth in case you can't make it. Hope to see you there!

🇸🇪 The Drop | 16-17 Sept → Staffan Qvist and Finn Aretz will be around - reach out to discuss better decision-making in science-tech investing. → Ripple: Staffan will be diving into climate tech due diligence with Dr.-Ing. Mark Windeknecht from World Fund. 🇬🇧 🔥THE HEAT | 20 Sept → Drop by our booth to learn about science-tech due diligence in the investing process. → Workshop: Navigating Science-Tech Risks and Due Diligence with Staffan Qvist and Finn Aretz. Hope to see you around!

Science-tech founders: how should you prepare for investor due diligence? ↓ Emerging companies will face science-tech due diligence multiple times, with questions focused on mission-critical areas, so ongoing preparation is crucial for navigating the process successfully. Here are the key steps to prepare: 1 - Understand the investment thesis: Begin by putting yourself in the investor’s shoes to gain insight into their position and objectives. Each investor has a unique investment thesis which influences the structure, depth, and goals of their science-tech due diligence. Your task is to anticipate what they will want to examine and why. 2 - Assemble your force: Choose the right members from your tech team to participate in the due diligence process, and ensure they are knowledgeable about all relevant details. Participants typically include the CEO, Founder(s), CTO, CSO, VP Engineering, Principal Scientist depending on the structure, size and depth of your team. 3 - Prepare your documentation: Your documentation should (a) support investors in evaluating your key propositions and (b) be transparent and address gaps proactively. Avoid overwhelming the data room with peripheral information to help investors and due diligence providers focus on the most relevant details. Download our full guide for a checklist of documents you'll be expected to provide. 4 - Collaborate and be transparent: Interviews are designed to evaluate not only the technical foundations, strategic alignment, and team capabilities but also how well you and your technical team can engage with experts in a discussion. Acknowledge imperfections honestly and present your plans to address them. This will show your team’s ability to listen, learn, and adapt. 5 - Leverage the process: Ultimately, a well-structured science-tech due diligence process benefits both founders and investors. For founders, it provides clarity and actionable steps to enhance technology and business strategies. Expert insights not only reveal potential weaknesses but also offer valuable guidance for improvement. Use this feedback to establish de-risking milestones, refine your value creation roadmap, and optimize your R&D strategies. Download the full guide here: https://lnkd.in/dQPuVxpG Next up in this series: Discover what investors will typically expect in the process and question about your tech. At Deepsense, we are increasingly working with startups to proactively kickstart the process and manage science-tech risks and value creation opportunities well in advance, based on advice and sparring from seasoned technical experts. Reach out to us to get a head start. #deeptech #sciencetech #startup #duediligence #fundraising #funding #techduediligence #vc #deepsense

Join us tomorrow! We’re hosting a free AMA session with Deepsense's Staffan Qvist and Finn Aretz to answer the big questions for science-tech founders and operators: → How should you prepare for investor science-tech due diligence? → Which documents will you need? → What will investors typically ask for? → How can you get ahead? Don’t miss your chance to get actionable advice and be investor-ready. Register now: https://lu.ma/rgnzpav9 #sciencetech #founders #ama #funding #fundraising #vc #duediligence #deeptech #climate