Scaling a deep tech startup comes with unique challenges - long R&D cycles, capital-intensive development, and complex commercialisation pathways.
So, how do we scale deep tech startups with the right partners?
Cicada Innovations and CSIRO teamed up to host ‘scaling deep tech with the right partner’, featuring a founder-led panel where deep tech entrepreneurs shared how they identified and leveraged the right partners, such as CSIRO.
Our panel featured experts Alex Post, MGA Thermal, ShanShan Wang, Roam Technologies
and Daniel Wang, Flavour IQ, who shared their insights, journey and how they specifically worked with CSIRO’s R&D teams, funding programs, and commercialisation pathways to turn their ideas into scalable ventures.
Read on as they share their 7 key takeaways for how partnerships can accelerate product development, de-risk commercialisation, and open market opportunities to help scale Australia’s deep tech innovations.
Before engaging potential partners, founders must be able to clearly articulate the problem they’re solving and their ideal solution. It is important for startups to thoroughly research potential partners, understanding their organisational structure and identify the key decision-makers. This strategic preparation minimises wasted time and increases your chances of success. To set yourself up for a productive conversation, consider the following:
Deep Tech Founders need to avoid getting stuck in "partnership doom loops." Have the courage to initiate difficult conversations early to quickly determine viability with partners. A fast "no" is as valuable as a "yes," allowing you to efficiently redirect your precious time and resources. Startups are encouraged to remember:
When approaching large corporations, startups should find an 'internal champion'. This is someone who is a direct contact who can advocate for your technology to the rest of the partner company. This makes it effortless for them to advocate for your technology by framing your offering as a direct solution to a problem they are painfully experiencing. Your ability to occupy their "headspace" is also key. To make the most of this, startups should:
Seek out internal champions: Identify who is the best point of contact from the partnering organisations you are wanting to wok with, who understand the product or service well and are passionate about your solution.
Regularly check in: Maintaining an active relationship with an "internal champion" is crucial for sustained partnership success. Especially if they leave the organisation without notifying you can be critical during business phases and can sever vital connections, jeopardising the long-term viability of collaborative ventures.
The founders shared the importance of utilising public announcements of collaborations, even small Memorandum of Understanding (MOUs), to provide immense external validation for startups. This 'vote of confidence' from a reputable partner can significantly enhance your credibility for future funding or partnerships. Startups are recommended to:
Highlight validation: If you secure a partnership, seek opportunities to publicly announce it, as this can significantly boost your startup's credibility. Always ask if an MOU announcement is possible.
True strategic partners offer far more than just capital. They provide invaluable advice, connections, and support through challenging times, acting as a true "partner with benefits" that is essential for long-term deep tech growth. The founders shared, "It's easier when you have the right partners, like an investor that's invested in you, who wants you to succeed as well.
Focus on mutual benefit: Emphasise the mutual benefits of a partnership, highlighting how it can help the other party achieve its goals.
Aim for More Than Just Funding: Seek partners who offer more than just financial support, such as advice, connections, and industry expertise.
Networking isn't about awkward introductions; it's about making your story so interesting that others are glad they met you. Be clear about your problem and solution, understand mutual interests (which aren't always commercial), and always bring clarity and value to the conversation.
Build on-going relationships: Focus on building relationships and trust, as these are essential for long-term partnership success.
Be open to every opportunity as a partnership potential: Startups should consistently view networking as a strategic avenue for cultivating potential partnerships. As our panel emphasised. Some deals start with "a simple conversation at a conference, or event, like Cicada x Tech23, not just in a boardroom".
While passion for your technology is crucial, the biggest impact comes from focusing on the critical business problem you are solving for your partner. If they're not experiencing a significant pain point, your biggest competition is "do nothing." Understand their pain, and frame your solution accordingly. Startups need to consider how to be attractive to potential partners. Such as:
Be Prepared to Adapt: Be prepared to adapt your business model to meet the needs of potential partners.
Understand Market Dynamics: Understand the dynamics of the market you are entering, including the competitive landscape and potential barriers to entry.
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