Building breakthrough technology is hard. But it’s building a scalable business around it, that’s often harder.
And yet, despite the challenges, there’s never been a more exciting time to be building a deep tech business in the UK. According to Dealroom, UK deep tech companies have attracted more than $43bn in venture funding since 2019, making the UK the third-largest deep tech ecosystem globally, behind only the US and China.
Meanwhile, the Royal Academy of Engineering’s 2025 State of Deep tech report found that deep tech now accounts for around 31% of all UK VC investment – a threefold increase over the last decade.
The opportunity is clearly there. The challenge for founders is turning world-class innovation into a business that can scale.
Deep tech founders spend years solving some of the world’s most complex technical challenges. Whether it’s AI, quantum computing, advanced materials, robotics or life sciences, the innovation is rarely straightforward. Yet many ventures discover that technical brilliance alone doesn’t guarantee commercial success.
Some of the most critical challenges in scaling a deep tech company lie far beyond the realms of technology.
From customer adoption and fundraising to governance, communication and leadership, the journey from innovation to impact requires a completely different skill set.
Drawing on insights shared during Cooper Parry’s recent VentureCEO deep tech programme, here are some of the hard truths that deep tech founders should embrace to scale successfully.
With thanks to the VentureCEO deep tech cohort, David Grimm (Partner, AlbionVC), Hailey Eustace (Founder, Commplicated) and Peter Crocker (CEO, Oxford Semantic Technologies) for sharing their insights.
THE OUTCOME IS YOUR PRODUCT. NOT THE TECHNOLOGY
Many deep tech businesses begin with a breakthrough.
A new algorithm. A patented process. A scientific discovery. A novel piece of hardware. A ‘lightbulb moment.’
Because the technology is what makes the business unique in its earliest days, the temptation is to make it the centre of every conversation.
But customers buy (and want) outcomes.
They buy reduced costs, improved efficiency, increased revenue, lower risk, better compliance or a competitive advantage.
Founders who build long-lasting companies stop viewing the organisation through the lens of the innovation and start viewing it through the lens of the customer.
The most successful deep tech businesses become obsessed with one question: what problem are we actually solving?
COMMERCIALISATION: START BEFORE YOU’RE READY
Many founders believe they need a finished product before engaging with customers. But waiting too long can be an expensive mistake.
Early customer conversations shape product development, uncover use cases, reveal unexpected market opportunities and expose assumptions that may not survive in the real world.
Particularly in emerging markets, founders often discover that the commercial opportunity they ultimately pursue looks very, very different from their original vision.
Deep tech companies don’t need complete certainty before engaging the market. They need a clear hypothesis, strong conviction and, crucially, a willingness to learn.
The founders who commercialise most effectively are often those willing to have uncomfortable customer conversations long before they feel fully prepared.
TECHNICAL PERFECTION CAN BECOME A GROWTH TRAP
Deep tech founders are often driven by excellence. After all, it’s this mindset that’s often what created the innovation in the first place.
That said, the pursuit of technical perfection can sometimes delay commercial progress.
Customers don’t evaluate products the same way engineers and scientists do. They aren’t always buying the most elegant technical solution. They’re buying the solution that solves a problem effectively and fits neatly into their organisation.
That’s why procurement processes, system integration, security requirements, user experience and operational reliability often matter just as much as the underlying technology.
Scaling requires founders to recognise when improving the product further creates diminishing returns. And at some point, market adoption becomes more valuable than technical optimisation.
INVESTORS AND FOUNDERS DON’T ALWAYS WANT THE SAME THING
One of the least discussed realities in venture-backed businesses is that founders and investors are often optimising for different outcomes.
Founders may prioritise sustainability, culture, risk management and long-term success.
Venture investors are typically focused on creating outsized returns. Those objectives can align, in some instances. But they aren’t identical.
This creates inevitable tension around hiring plans, growth rates, fundraising timelines, international expansion and capital deployment.
The strongest founder-investor relationships are built on transparency and mutual understanding, rather than assuming everyone shares the same priorities.
Understanding incentives is a critical leadership skill, and the founders who recognise this early are better placed to navigate board discussions, fundraising conversations and strategic decision-making.
A BAD BOARD CAN COST YOU BIG TIME
Few things can accelerate or hinder a scaling business more than its board.
An effective board provides perspective, experience, accountability and strategic guidance. It helps leadership teams make better decisions and move faster.
An ineffective board creates friction. Slows decision-making. Consumes management attention and distracts leaders from customers, talent and execution.
As a company scales, governance structures must evolve alongside it.
So, think carefully about your board composition, individual expertise and the behaviours you want to encourage around the table.
The most valuable boards spend less time revisiting the past and more time helping shape the future.
COMMUNICATION IS A GROWTH LEVER
Communication sits at the heart of scaling.
Great communication helps attract investment, recruit talent, secure partnerships and drive customer adoption.
Most importantly, going back to the earlier technology vs. outcomes point, it helps people understand why the technology matters.
Instead of overwhelming audiences with technical detail, the strongest founders make complex ideas accessible, translating innovation to impact in smooth fashion.
INVESTORS BACK FOUNDERS, NOT JUST BUSINESSES
Technology, market opportunity and intellectual property are undoubtedly important in an investor’s decision-making process. But at its core, they’re making a bet on people.
Particularly in deep tech, where markets evolve, products pivot and commercial models change, investors want confidence that founders can navigate uncertainty.
While they’re assessing the technology, they’re also assessing judgement, adaptability, execution speed, leadership capability, commercial awareness and the ability to attract great people.
That’s why a founder’s capacity to learn and evolve may prove more important than the original business plan.
AMBITION NEEDS TO MATCH THE OPPORTUNITY
The UK has an extraordinary concentration of scientific talent, research capability and technical expertise.
Yet many founders still have a tendency to understate their ambition.
Building a world-changing business requires technical credibility. But it also requires a lot of belief.
That doesn’t mean exaggeration or unrealistic, souped-up projections.
It means being willing to articulate a vision that matches the scale of the opportunity.
Investors, customers and future employees need to understand where the company is going, not just where it is today.
The founders who scale successfully combine believable execution plans with ambitious long-term thinking.
EXITS ARE BUILT LONG BEFORE EXIT DISCUSSIONS BEGIN
Founders often think of acquisitions and exits as isolated events, but the foundations are laid years earlier.
Strategic relationships, commercial partnerships, customer trust and industry credibility all compound over time.
Many successful exits emerge from organisations that have collaborated, partnered or worked together for years before any formal acquisition discussion takes place.
So, build relationships before you need them, because the strongest strategic opportunities rarely pop up overnight.
WRAPPING UP
Three points to leave you with:
- Great technologyisn’t enough. Customers buy outcomes.
- Scalingrequires a different skill set than inventing.
- Ambition,adaptability and experienced advice are critical for long-term success.
WANT TO TALK DEEP TECH STRATEGY FOR YOUR BUSINESS?
If you’d like to hear more about how we’re working with deep tech businesses including Hadean to achieve scale, through our work across tax advisory, finance support, compliance and strategic finance, get in touch.
