Deep Tech Funding: European Founders Gain Access to First Momentum Survey on Navigating Hardware Funding

Deep Tech Funding: First Momentum Boosts Hardware
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  • Deep Tech Funding: First Momentum introduces Deep Tech Hardware Napkin as a resource for European hardware deep tech teams.
  • The Deep Tech Hardware Napkin aims to provide essential knowledge and benchmarks for funding, team composition, product development, and commercialization tailored to Europe’s deep tech sector.
  • A survey conducted by First Momentum revealed that teams led by highly technical CEOs tend to secure more funding at Seed and Series A stages.
  • The survey also showed a positive trend in deep tech hardware funding rounds, with larger rounds in 2023 reflecting increased investor interest in the sector.
  • First Momentum advises founders to derisk their funding strategy by identifying key milestones and understanding financial requirements to attract future investment.

Exploring the First Momentum Survey on Navigating Deep Tech Funding

Deep Tech Funding: A New Frontier for European Founders

In the realm of European hardware deep tech, a groundbreaking tool has emerged to empower founders on their funding journey. First Momentum, a pre-seed fund focused on technical B2B and deep tech startups, has introduced the Deep Tech Hardware Napkin. This resource stands as a beacon for European founders, akin to Point Nine’s SaaS Funding Napkin, providing essential insights into the funding landscape tailored to the unique needs of the region’s burgeoning deep tech sector.

The Significance of the Deep Tech Hardware Napkin

The Deep Tech Hardware Napkin serves as a comprehensive guide, offering critical knowledge and benchmarks related to funding, team composition, product development, and commercialization. By breaking down these key aspects by stage, First Momentum aims to democratize information that is often elusive to first-time founders and those lacking extensive networks in the startup and venture capital ecosystem. Many deep tech entrepreneurs, originating from research backgrounds, often find themselves at a disadvantage when it comes to making informed decisions due to the absence of relevant data and guidance.

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One striking revelation from the survey conducted by First Momentum is the impact of leadership on funding success. Teams led by highly technical CEOs, even in the absence of a traditional business background, tend to secure significantly more funding at Seed and Series A stages. This finding underscores the importance of technical founders acquiring business acumen to enhance their funding prospects, highlighting a unique trend within the deep tech hardware sector that sets it apart from the global SaaS industry.

Trends in Deep Tech Hardware Funding

The survey results unveiled a positive trend in the deep tech hardware funding landscape. Comparing funding rounds in 2023 to those in 2022, it was evident that pre-seed and Series A rounds were larger, signaling increased investor interest in the sector. Globally, deep tech now commands 20% of venture capital funding, marking a significant rise from a decade ago. This growth can be attributed to the substantial upfront investment required by deep tech ventures, leading to larger funding rounds on average.

At the Series A stage, the survey highlighted that only 29% of startups had achieved repeatable sales and significant revenue, emphasizing the prolonged timeline necessary for deep tech startups to reach critical revenue milestones. To navigate this challenge, founders are advised to adopt a strategic approach by reverse-engineering their funding strategy. By identifying key milestones and derisking their business model, founders can attract future investments by showcasing a clear path to success.

Supporting European Deep Tech Founders

In addition to providing valuable insights through the Deep Tech Hardware Napkin and survey report, First Momentum goes a step further to support technical founders through community initiatives like Clueless No More. This platform enables aspiring scientist-entrepreneurs in Europe to share experiences, learn from one another, and address common challenges faced in the deep tech landscape.

The community initiative is particularly crucial in light of concerns raised by industry experts like Francesco Ricciuti from Runa Capital, who highlighted the detrimental impact of poor technology transfer on the success prospects of deep tech ventures. By fostering a collaborative environment and equipping founders with the necessary tools and knowledge, First Momentum aims to propel European deep-tech startups towards innovation and growth, driving the sector forward in the ever-evolving world of deep tech funding.

The First Momentum survey on navigating deep tech hardware funding has unveiled a wealth of insights and benchmarks essential for European founders venturing into the deep tech landscape. By leveraging these resources, founders can overcome challenges, make informed decisions, and chart a successful course in the competitive realm of deep tech entrepreneurship.

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