How to use the Lean Startup Method for Deep Tech
Reading pick(s)
Remember the "Thoughts on DeepTech #2" from earlier this year, titled "Why Lean Startup is Not for Deep Tech Ventures (and What This Has to Do with Pudding)?"
This week, I’d like to recommend a brand new article in the Harvard Business Review by Linus Dahlander and Francis de Véricourt (both ESMT Berlin), titled "Do Lean Startup Methods Work for Deep Tech?" which directly addresses some of the problems surrounding the applicability of the Lean Startup method to Deep Tech startups.
In their article, the authors explain why the Lean Startup method, as it stands, is not suitable for Deep Tech startups due to their specific characteristics and the associated challenges. Let’s reiterate some of them:
(1) Most obviously, building prototypes for highly hardware-driven Deep Tech startups, such as in quantum computing or robotics, comes with significant engineering risks and costs. This makes it impractical to develop rapid prototypes for iterative testing with potential customers.
(2) The development cycles of Deep Tech ventures are typically significantly longer compared to their non-Deep Tech counterparts. This poses another major obstacle to implementing the rapid prototyping philosophy.
(3) Most important, the customer, i.e., the problem space, is often unknown. Deep Tech Startups are typically tech-push, meaning they often originate from scientific breakthrough inventions. While founders possess a strong idea of the technology or solution space, they often lack insight into the practical problems the technology could solve. As a result, initially, they are often not aware of the diverse application possibilities and potential needs of customers that the technology could address.
Building on some of the inherent challenges of Deep Tech startups, the authors propose strategic approaches for how Deep-Tech founders can adopt some of the strategies and methods of the Lean Startup approach despite these challenges, while providing illustrative examples.
Learn more here on HBR.
Furthermore, in a recently published article by Said Werner and me on Gründerszene (German only), we discuss the role of Deep Tech ventures for Germany and the close collaboration with the industry urgently needed to scale Deep Tech startups, as well as bring “Made in Germany” back to the global forefront. And what dolphins actually have to do with it.
Learn more on Gründerszene via the following Link.
