It takes a village to develop an idea - how incubators help you grow and commercialise your deep tech venture.
Deep tech is advancing impactful ideas for our society, whether in innovation for health or how we use technology to interact with the world. Scientists and innovators are often motivated to develop their big idea because of the profound contribution to the planet. However, it's impossible to do it alone.
Big ideas take collaboration, and entrepreneurs need to lean on a network for funding, expertise, and market access to reach commercialisation.
Incubators provide business support that can take an idea from the lab to the world. Participating in an incubator programme gives founders a pathway to join the local deep tech ecosystem and unlock global opportunities.
Your startup's evolving needs
As a deep tech startup, your needs will evolve as your company matures. Early-stage startups require funding and business expertise to gain momentum for an idea. For mature startups, this focus shifts to market access, credibility, and hiring talent.
Incubators can become a long term partner with innovators as they grow, providing funding and expertise at the start, and opening doors to global markets when the idea is ready. Incubators can also prepare ventures for their next round of funding.
What an incubator can offer
Bridgewest Ventures is an approved partner of Callaghan Innovation's 2020 Technology Incubator Programme. For Mitali Purohit, Senior Technology Incubator Specialist at Callaghan Innovation, the intent of the programme is to get intellectual properties out of the lab.
“Governments put a lot of money into research, but it doesn't get commercialised," Purohit explains, "We're looking to increase the number of deep tech ventures based on complex technologies in New Zealand.”
By applying to the 2020 Technology Incubator Programme, founders could receive a $750,000 repayable grant from Callaghan Innovation and up to a $250,000 investment from an approved incubator. Callaghan Innovation has committed to funding deep tech startups in New Zealand with $160 million over the next eight years.
Purohit also says participating in an incubator can help innovators prepare for their next round of investment.
“Angel investors find it too early or too risky to invest in deep tech at the start," she says, "In an incubator, startups can access commercialisation expertise, global channels to market and funding that can attract full-on investment down the line either in New Zealand or overseas.
Bridgewest Ventures is currently taking applications for our incubator, and we are excited about what we have to offer deep tech startups.
Funding
Incubators may be able to provide several stages of funding. For Bridgewest Ventures, funding may start with a pre-incubation grant to explore and validate your idea. These funds are used to better understand your technology, market position, and future commercialisation opportunities.
Further funding might include grants, like the $750,000 repayable grant from Callaghan innovations for the 2020 programme, in addition to a direct equity investment from the incubator themselves.
The funding from incubators can help get a deep tech innovation off the ground and cover the cost of creating a proof of concept, licensing, and patenting your technology for use around the world. Gaining this early stage finding can create pathways for further investment down the line.
Expertise
One of the significant challenges of deep tech is commercialisation. Many factors get in the way, including risk, the time it takes to develop the idea, and the fact that sometimes the technologies are so cutting-edge that there isn't even a market for them yet.
An incubator can provide innovators with the business knowledge required to commercialise their idea. Often this will include access to mentors who have brought other complex technologies to market and understand what's needed to protect and grow your IP.
At Bridgewest Ventures, we are committed to investing in your business capabilities alongside your venture. We offer a mentorship programme so innovators can learn the skills needed for growth and meet with experts for advice.
Networks
By participating in an incubator, startups can often access a more extensive network to grow their idea. Perhaps the incubator can introduce you to a corporation interested in your technology or a lab in another country that can help bring down costs.
At Bridgewest Ventures, we establish pathways to markets through our existing global network and United States-based parent company Bridgewest Group with operations in China, Europe, Australia, and New Zealand. In deep tech, the right connections can be what it takes to facilitate your venture's growth.
Don't go at it alone
There's no doubt that incubators provide a wealth of material support for innovators trying to bring their big idea to market.
At Bridgewest Ventures, we strive to provide emotional support and encouragement to our innovators as well. The deep tech industry is challenging, and surrounding yourself with experts who align with the goals of your technology can make it much less lonely.
Find out more about Callaghan Innovation's 2020 Technology Incubator Programme, and apply to participate in the Bridgewest Ventures Incubator.