B2B Sales Strategies for Deep Tech Startups. A chat with Vik Li, Investment Director @ Ericsson Ventures

Nov 29, 2024

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Host: Nicola Marchese

Guest: Vik Li, Investment Director, Ericsson Ventures

#DeepTechCatalyst

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KEY TAKEAWAYS:

1. The Deep Tech sales cycle stands apart from traditional B2B sales due to its complexity and the novelty of the technology. It often begins with educating potential customers about the technology’s unique benefits, understanding their needs and pain points, and conducting proofs of concept (PoCs) to validate the solution. These stages require patience and a strategic approach, as the timelines can be significantly longer.

2. Prioritizing the right customers is critical to success. Founders should focus on industries where their solution delivers the highest value. For example, in quantum computing, the financial sector presents high-potential use cases like portfolio optimization and risk management. Equally important is identifying companies with a strong emphasis on innovation, such as those with robust R&D investments or structured corporate VC programs. Engaging directly with decision-makers who have both the need and budget to implement the solution can significantly improve the chances of closing a deal.

3. Effective sales in Deep Tech start with a problem-focused approach. Rather than leading with product features, founders should prioritize understanding their customer’s pain points and framing their solution as the ideal response to those challenges. This approach avoids the common pitfall of overly product-centric pitches and helps build trust with potential clients.

4. Founders themselves must take the lead in early sales efforts. While it may feel uncomfortable, especially for those from academic or technical backgrounds, direct engagement with customers provides valuable insights into market needs and helps refine the product roadmap. This hands-on involvement also establishes credibility, which is crucial in building relationships with early adopters.

5. Channel partners can play a transformative role in navigating complex sales environments. Established partners often have pre-existing relationships with target customers, which can accelerate the sales cycle and bypass lengthy procurement processes. They can also help mitigate financial strain by offering predictable terms, which is particularly important for startups that may struggle with extended payment cycles.

6. Pricing strategies in Deep Tech require careful consideration. A value-based approach, where pricing is tied to the tangible benefits a solution provides, often works best. For example, if a product saves significant time or improves efficiency, the financial impact of those savings should inform the pricing. Additionally, offering predictable pricing models, such as fixed rates or clear consumption limits, aligns with the budgeting needs of large enterprises and reduces friction during negotiations.

#Fundraising #Startups #DeepTech #VentureCapital #CorporateVentureCapital #CVC #Quantum #Sales #Computing #VCs #HardTech #industry #tech #strategy #founders #technology #entrepreneurship #phd

Disclaimer: This content is provided solely for educational and informational purposes and should not be interpreted as financial or legal advice. Given the complexity and potential impact of these terms, it is crucial to consult with an attorney. Legal expertise is invaluable in navigating these technical aspects and ensuring that the terms are in your best interests before finalizing any agreements.