
Startup Benchmarks - vccafe
https://www.vccafe.com/2019/11/02/benchmarks/
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jandrewrogers
A key observation about the "deep tech" benchmarks versus all the other
categories of startup is that they are fundamentally _subjective_. To make
that situation worse, there is frequently a dearth of qualified outside
expertise that an investor can lean on to evaluate the startup. This makes
deep tech a very different kind of fundraising process than the other types of
startups.

Tangential to that, it is nearly impossible to raise money as a deep tech
company in software specifically. Some of the reasoning is valid (where will
the revenue come from?) but it also greatly stunts development of novel and
advanced capabilities in software that require substantial investment.

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vccafe
I tend to agree with you. Even though there are specialist funds in deep tech,
the available capital is less than traditional SaaS. The cycles are longer in
deep tech, and require a bit more 'patient capital. That said, deep tech
startups know to access a range of subsidies and grants that are equity free
in a way that more traditional startups don't.

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skanga
Anyone have a list of names of these specialist funds in deep tech?

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vccafe
Interestingly, I didn't find a handy list... here are a few US funds focused
on Deep tech DCVC - [https://www.dcvc.com/](https://www.dcvc.com/) ARCH
Ventures - [https://www.archventure.com/](https://www.archventure.com/) Defy
Ventures - defy.vc Eclipse Ventures - eclipse.vc Grit Ventures -
[https://gritventures.com/](https://gritventures.com/)

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aaavl2821
For biotherapeutics (the largest subsector of deeptech in terms of VC funding,
receiving $17B in 2018, and also the most idiosyncratic), in general the
milestones are:

Series A:

* lead product with robust data in gold standard animal models + strong additional supporting data OR

* validated, novel biology platform with a team of experienced drug hunters

* path to first in class or best in class product in market with significant unmet clinical need

* good IP including composition of matter (or experienced team of drug hunters who knows this is important, if too early for having this IP)

* either a lead development candidate or a clear path to one (can be earlier stage if you have a really good biology platform, proven team, and tractable chemistry)

* path to human POC on venture dollars (doesn't have to be on the Series A, but ideally on Series B, though later can be acceptable)

* good team

Series B:

* same as above, plus: should be able to get through early human studies on this round

Seed is pretty variable but generally you need a plan to achieve Series A
readiness with your seed money

Of course this is a broad generalization -- some startups license very
advanced drugs from pharma and use the Series A to fund a clinical study in a
new indication

Note that pretty much all of these milestones relate to products, not
platforms. A platform is only worth as much as the products it generates. In
general Series A investment in platform companies are focused on generating
the first products and getting them into preclinical development

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grdeken
Super helpful. Thanks!

