HTGF Deep-Tech Matrix: Navigating the Growth Path of Technology-Driven Startups

Deep-tech companies develop technologies that can transform entire industries. That makes them exciting – especially for investors. Yet many startups struggle to clearly explain their potential.

Often, what’s missing is a consistent and compelling story. HTGF experts Dr. Gernot Berger, Dr. Olaf Joeressen, and Yann Fiebig have tackled this challenge. In a recent paper, they outline what really matters for deep-tech startups – and present a practical tool to help: the HTGF Deep-Tech Matrix. 

Deep tech stands for innovation rooted in science and engineering. Whether it’s AI, robotics, new materials, or biotech – deep-tech startups aren’t solving small, everyday problems. They tackle major societal and industrial challenges. The current momentum in deep tech is more than a trend. For many, it represents hope – hope that we can keep innovating at a high level. And for investors, it’s an opportunity to support radical change with the potential for significant returns. 

The Deep-Tech Disconnect: why great tech alone is not enough to convince investors 

Despite their promise, many deep-tech founders face a tough reality: investors hesitate. It’s not about quality or potential – it’s about a mismatch in expectations. This gap is called the deep-tech disconnect. It refers to the structural difference between how tech-heavy companies evolve and how most VC investors think. 

Investment models of the past two decades have been shaped by software startups: fast Minimal Viable Products (MVPs), early user feedback, and low capital requirements. Deep tech doesn’t follow that path. These companies need years to develop, require substantial funding, and only reach market readiness much later. 

That’s why deep-tech startups need a different kind of pitch – a well-crafted equity story. It has to go beyond standard slides and metrics. It must clearly define a big, unsolved customer problem. It must show why a scientific or technological breakthrough is the right – or only – way to solve it. And it must explain why this specific team is the one that can turn the idea into a product. A convincing story makes the technology tangible: with patents, deep expertise, and a realistic roadmap that connects lab to market. 

The HTGF Deep-Tech Matrix: Navigating a Complex Journey 

So how do you describe a startup’s progress if it’s not measured in revenue or MVPs? That’s where the HTGF Deep-Tech Matrix comes in. It’s a hands-on tool to plan, explain, and communicate the path from scientific idea to scalable business. It helps founders build a clear equity story – and creates a shared language between them and investors. 

The matrix is based on two key dimensions: technology readiness and certainty for a huge market. Tech readiness is assessed using standard TRL scales – from early research (TRL 1–2) to proof-of-concept (3–4) to market-ready solutions (8–9). Successful founders know where they are, what comes next, and what they can already show. 

The second dimension – the market – is often underestimated. But for fundraising, it’s crucial. Is the market proven? Is there strong growth potential? Is the problem clearly defined and validated by real customer demand? The matrix helps assess these questions, too. 

Each cell in the matrix represents a unique combination of technology and market maturity. Ideally, a startup moves step by step to the top right corner – a scalable product in a large, validated market. Along the way, typical phases can be identified: from early concepts with no clear market (“No Money Land”) to Pre-Seed, Seed, Series A and B – where scalability and repeatable revenue come into focus. 

Putting the Matrix to Work 

An example from the field of engineering simulation illustrates how the matrix can be applied in practice. The company developed an early cloud-based prototype aimed at a previously underserved target group: engineers without access to traditional, high-cost CAD tools. While the technological feasibility was promising, the market potential had not yet been validated. The company’s development began at a medium technology readiness level and in a market environment that was still largely unexplored. 

What proved decisive was a clearly defined go-to-market strategy, combined with systematic product management and increasing customer engagement. This allowed the company to make continuous progress toward scalability. A coherent and well-structured equity story – one that connected the customer problem, the unique technological approach, and the commercial roadmap – played a central role in gaining investor confidence and securing funding for further growth. 

Conclusion: Building a Shared Understanding from Day One 

The HTGF Deep-Tech Matrix is more than just an analysis tool – it’s a compass. It helps founders structure their story, define key milestones, and communicate their journey. It also creates mutual understanding between startups and investors – with shared expectations, clear language, and realistic planning. 

For investors, the matrix provides clarity: what tech maturity and market development are realistic at each funding stage? It turns uncertainty into informed decisions. In short: the Deep-Tech Matrix brings structure to complex ventures – and lays the foundation for successful fundraising and sustainable growth. Because even the next deep-tech unicorn starts with a well-told story.