The challenges associated with deep tech companies are primarily linked to the complexities involved in the technology commercialization process.

These challenges can be broadly categorized into four main areas: extended development timelines, intricate value chains, limited access to social and physical infrastructure, and high capital requirements.

For deep tech startups in Singapore, these challenges are no different. Founders in Singapore must navigate the unique aspects of the local ecosystem, which includes strengths such as high-quality science, modern infrastructure, and efficient government, as well as weaknesses like a small domestic market, limited depth in the local B2B market, and a significant gap between science and commercialization.

Overcoming barriers on all fronts of building their venture, including customers, value chains, talent availability, and capital, is crucial for Singaporean entrepreneurs looking to achieve global success and outdo the competition.

Embracing the challenging path of deep tech entrepreneurship in Singapore requires founders to establish a strong position within the global network of players. Having a global mindset allows startups to target promising markets, form strategic partnerships with top technology companies, and expand beyond their immediate geographic surroundings.

While some may view early international expansion as a risk, especially in regions like the US, EU, China, or India, many founders understand that being competitive means crossing borders and targeting major international markets for growth, talent acquisition, and fundraising.

The journey of developing capabilities and conducting business across borders is a familiar challenge for founders aiming to expand and grow their ventures. For founders in the deep tech space, aligning with top industrial players across multiple markets is essential for market sizing, timing, and scalability.

Developing a successful international strategy involves mitigating risks, finding the right partners, and establishing long-term collaborations with key players in major markets such as North America, Europe, Japan, Israel, South Korea, China, and India.

While the deep tech landscape in Southeast Asia is rapidly evolving, the region is still considered Tier 2 in terms of hard tech intensity, depth, and maturity. Therefore, young ventures in the region must focus on international expansion early on, leveraging cross-border partnerships to drive growth and success.

Strategy amidst chaos

Creating impact as a deep tech startup involves navigating a complex network of stakeholder relationships. Founders must continuously assess and understand the end users of their products or services, as well as the intermediaries that connect them to customers and partners.

Managing relationships with intermediaries strategically is crucial for controlling development timelines, go-to-market strategies, and long-term funding opportunities.

While challenges abound in the cross-border journey, founders can overcome pitfalls by adopting a few practical approaches:

Being default global vs default local

Building a global company begins with the founders’ mindset and approach. Identifying support in advanced economies, large markets, and top industrial ecosystems early on can pave the way for future international success. Avoiding common mistakes like mistiming international expansion, hiring the wrong leaders, and neglecting the root causes of global success is essential.

Capitalizing on international playbooks

Each venture’s path to becoming a cross-border firm requires a unique playbook. Founders should invest time in developing a comprehensive strategy that incorporates learnings from global growth experiences and positions the venture for success on the global stage.

Empowering the right executives

Hiring executives with strong networks and international experience is key to accelerating a deep tech company’s growth. Collaborating with experienced professionals and fostering a culture of continuous adaptation and empowerment within the organization can drive long-term success.

By embracing a global mindset, leveraging international partnerships, and empowering key executives, deep tech startups can overcome cross-border challenges and establish themselves as global players in the competitive tech landscape.

This article was originally published on Medium on July 30, 2021.

Image credit: monsitj

This article was first published on August 21, 2021.

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