Cutting Through the Noise: The Deep Tech That Europe Really Needs
Last Thursday, we welcomed our incredible network yet again to our Portfolio Day in the heart of Berlin.
Like in previous years, we celebrated our ecosystem and invited brilliant founders to the stage to present their work. We enjoyed networking, barbecue, drinks and lovely spring weather.
However, noticeably different was the absence of major fanfare, fluff and buzzwords. Our presenters and panel guests adopted a more actionable tone with a laser focus on how industrial technology is solving real-world problems.
We appreciate how grounded this edition was — both in terms of honoring our thesis from back in 2017, and also the real problems that Europe and its citizens are facing.
Support for Industrial Deep Tech in Europe
We had the pleasure of welcoming Kelly Chen of the NATO Innovation Fund (NIF), who has chosen to invest in our mission to support European industrial deep tech. NIF is a fund whose decision-making and structure are fully independent from NATO, but whose members comprise 24 of the alliance’s nations. It focuses on the broad scope of technologies that help solve the most pressing problems of NIF members’ citizens — namely AI, energy, novel materials, autonomy/robotics and more.
Kelly rightfully pointed out that deep tech requires patient capital and a unique fund structure — both of which NIF offers, making it an ideal complement to our fund setup at Join. When these two characteristics are present for a promising deep tech startup, that startup can more easily capture a large portion of the market with its singular technology.
The “Blue Skies Ahead” Mentality
We then had a chance to hear from five of our portfolio companies in the form of a panel moderated by Tobias: Opteran, Digital Spine, Picterra, Modelwise and 36ZERO Vision. This proved to be one of the day’s most insightful moments, as each company spoke of their strategies for overcoming hurdles. From these stories came actionable advice, and a strong sense of prosperity even through the toughest economic conditions.
Here’s what we learned:
- For R&D-heavy companies, it’s important to know when to put on the commercial hat and fuel up by focusing intensely on the customer.
- Sometimes a product is a first step and catalyst in digitizing an industry. It’s crucial to know your role in the market and how customers can benefit quickly. How can the product be positioned to provide immediate value for more customers?
- Scaling down in tougher times isn’t something that founders necessarily set out to do, but it can be a recipe for faster growth in the near future. Companies shouldn’t be afraid to focus on the sectors that demonstrate the deepest need for their technology.
- Companies should always utilize insights gained along the way, as they can illuminate new opportunities and help broaden go-to-market strategy.
- If a company has no problem acquiring pilot customers but greater challenges converting to integration, then it might be time to focus on the robustness of the core product instead of new features.
Italy: A New Frontier
We were thrilled to welcome our newest team member, Federico Fini, to the stage just before we began drinks and dinner. Federico’s infectious energy and passion for his home country shined through as he illustrated why Italy is a prime country for significant growth within the next ten years.
Italy’s rich history as an industrial nation, its position as the third largest domestic market in the EU and its fertile academic landscape are just three reasons why we’ve chosen it as a focal point for investments. Within several years, the funding gap between Italy and other central EU ecosystems has halved. In relative terms, Italy is catching up to other mature markets that are growing at a consistent rate.
Our partners, who have been monitoring Italy for over a decade, are doubling down on the region. This decision is already producing some of our most remarkable prospects for deal flow in European deep tech.
The addition of Federico to our team is a huge springboard for our investment traction in Italy. We’re looking forward to nurturing this expanded focus through our pipeline, events and ambassador network. By next year’s portfolio day, we will have plenty more updates on this new frontier.
Cheers to the exciting year ahead, and thanks for being a part of our vision!
And now, for more photos! Be sure to also check out our recap video via Instagram (and follow us there for more updates).
