Guest post
Written by Mark M.J. Scott
Northern Pixels Co., Ltd. President
A lack of scientific and engineering talent compared to the demand from the deep tech world is hindering the progress of thousands of startups. This shortage negatively impacts product development, funding, and evaluation. Fortunately, startup founders can implement practical strategies to increase their competitive advantage. If these strategies are executed correctly, additional lucrative returns can also be achieved.
At every stage, but especially in the early stages of development, deep tech startup founders face the daily challenge of prioritizing resources to achieve their goals. Given the number of challenges startups face, deciding how to allocate resources between one challenge and another can be a complex task. This often leaves some challenges unaddressed and can lead to more severe consequences than expected.
Successful founders are good at analyzing the myriad challenges they encounter and develop unique strategies to address multiple problems simultaneously. This kind of adaptability is an important survival skill for startup founders.
In this article, we discuss how the fierce competition for elite research talent adds to two of the other most important challenges facing deep tech startup founders: securing funding and developing strategies for future commercial success. I argue that these are intricately related. By allocating resources wisely and implementing a well-planned strategy, a founder can secure a significant competitive advantage in all three of his areas.
To prove my point, I'll outline the main factors top researchers consider when deciding which deep tech startup to join. Remarkably, these factors are exactly the same criteria that deep tech investors use to evaluate and select companies for their portfolios.
Opportunities for innovation and cutting-edge research:
A product's potential for commercial success often depends on its novelty, technological advances, and ability to address unmet needs in the market. They are likely to be more interested in startups that demonstrate a clear vision for the product and its market differentiation, as these factors indicate the commercial viability of the product.
Career development and growth opportunities:
The commercial success of a product can have a significant impact on a researcher's career trajectory. Working on successful products can lead to professional recognition, advancement opportunities, and building a strong professional network. Therefore, for researchers who are also considering long-term career growth and development, early signs of product-market fit can be a deciding factor.
Financial incentives and capital:
For many researchers, the financial reward associated with the commercial success of a product is an important consideration. Start-up companies often offer stocks or stock options as part of their compensation package, and the value of these can be tied directly to the company's market performance. Early signs of product success may therefore influence candidates' evaluations of the economic benefits of joining a startup.
risk assessment:
Participating in a start-up company involves a certain degree of risk, especially in terms of job security and company stability. Researchers may evaluate a product's potential commercial success as a proxy for the overall viability of a startup and the risks associated with its role. Start-ups that can demonstrate clear go-to-market plans and early customer advocacy are often seen as lower risk and more attractive to top talent.
Build your talent strategy to overcome multiple tough challenges.
The alignment of interests between leading deep technology researchers and investors highlights the urgency for founders to devise and execute marketing strategies early in the product development cycle. .
Startups establish a clear and concise foundational positioning that defines the challenges of the target industry and buyers, presents unique solutions to these challenges, outlines the value proposition, and communicates the company's mission. need to do it. It may seem obvious, but many startups lack a clearly defined current foundation, leading to misaligned priorities and missed opportunities.
Building on this fundamental position, it is important to build credibility through support from technical thought leaders, industry influencers, and potential customers. Integrating this support with strategic public relations and contextual communication plans is essential to amplifying your startup's message. Such a strategy helps build a solid pipeline of talent, investors, and future customers, thereby strengthening the startup's brand, accelerating development, and increasing competition well before the commercialization stage. A strategic advantage over other companies is secured.
About the author:
Mark MJ Scott is President Northern Pixels Inc. A company dedicated to improving and accelerating the success of deep tech startups. Mark grows multiple deep technology successes including an encryption company acquired by AppDirect, an optical and photonics company acquired by Toyota, and TrueContext, a pioneering enterprise low-code application platform acquired by Battery Ventures in 2024. He has played a leadership role in the It was hired by Canada's Quebec government's Quantum Innovation Zone and provided $435 million in funding to devise a commercial strategy to help the startup succeed.
