A Deep Tech Founder's Guide to Fundraising (Part 1)
Four Truths Founders Must Know
One of the most fundamental challenges every startup faces is fundraising. Even the most brilliant technology won’t survive if the company runs out of cash before reaching profitability. The good news is that there’s no shortage of resources and guides on the subject (and we’ll be linking to them next month in part two of our series.) Before diving into them, however, we want to explore four critical truths about fundraising along with some takeaway action points that will help you on your path.
TRUTH #1: Fundraising is both an art and a science
Fundraising isn’t just about numbers, it’s about people. Investors ultimately invest in people; they buy into your story, your passion, your why as Simon Sinek would say. This is the art of fundraising: the human touch that makes investors connect with you, that inspires confidence and trust in who you are and what you are trying to achieve.
But a story without substance will collapse. The science of fundraising comes from the value of your technology, real data about the market, and concrete plans for achieving your stated goals.
To succeed, you need both: a compelling story that captures the attention and solid evidence that proves you can deliver.
TRUTH #2: Fundraising and technology are two sides of the same coin
For startups in the deep tech sphere, technology is often the heart and soul of the company. That makes sense, since it is what sparked the creation of the business in the first place. In other words, technology came first, business came second. As founders, however, researchers and engineers turned entrepreneurs have to consider both perspectives, as one cannot survive without the other. You need the technology to get funding, but without the funding, you may not be able to work on your technology. To increase the chances of success, these two perspectives need to come together.
(For more on the interplay between business and technology, check out our interview with Guillene Teboul-Ribiere, a CEO and long-time business consultant for technology startups.)
TRUTH #3: Fundraising is a street map with many possible destinations
There’s no single “right” path to fundraising. Angels, venture capital, public grants, accelerators, strategic investors: the options are vast and each comes with trade-offs. Navigating this landscape is a job in itself, not only because of the breadth of that landscape, but also because of the fine print that determines whether an option truly fits your company.
Success isn’t just about knowing who to approach, but also how they operate, when the timing is right, and what level of preparation you need. In other words, you need to avoid burning bridges by approaching the right people at the wrong moment. At the same time, you need to learn the rules of the game so that when you approach the right people, at the right time, you can actually get a foot in the door. It's a people's game: Get referrals and introductions, ask who you should be talking to next.
TRUTH #4: Fundraising is a marathon, not a sprint.
Fundraising is not just a one-off application to a VC or an accelerator. It becomes part of your company’s identity until you reach profitability or exit. That means it should be viewed as an ongoing, long-term project rather than a short-term checkbox.
It’s not just the long horizon that makes fundraising a marathon, it’s also the effort involved (as described in Truth #1 and #2): the continuous preparation, the numerous applications, the many meetings, calls, and outreach emails, the persistence required to keep going until you find the right partner. Needless to say, you might need to go through multiple applications and rejection cycles until you secure funding.
That’s why adopting a marathon mindset is vital for founders. Otherwise you may leave fundraising too late (leading to cash flow problems) and take rejection personally (instead of viewing it as part of the process.)
So… what now?
These four truths aren’t abstract ideas; they’re a mindset for how deep tech founders approach fundraising. They shape how you tell your story, balance technology and business, choose the right path for your startup, and endure the long game.
Here’s how to put each truth into practice:
Truth #1: Fundraising is both an art and a science
Craft and refine your story relentlessly. Don’t settle for the first version of your pitch. Share it in conversations, test it on different audiences, and play around with it until people are responding to you.
Ground your story in evidence. Investors are inspired by vision, but convinced by proof. Back up your narrative with data, customer insights, and a credible action plan.
Master the balance of art and science. Lead with the story that captures attention, then follow with the facts that validate it. Together, they create a pitch that connects emotionally and rationally.
Truth #2: Fundraising and technology are two sides of the same coin
Acknowledge the business side. Fundraising is not a distraction from the technology, it’s a critical part of making the technology possible.
Balance deliberately. At different stages, fundraising or product development will demand more attention. Shift your focus consciously, not reactively.
Accept the paradox. You need technology to raise money, and money to advance the technology. Don’t get stuck in frustration, plan how to move both forward incrementally.
Truth #3: Fundraising is a street map with many possible destinations
Do your homework. Understanding the fundraising landscape is time-consuming but critical.
Recognize the trade-offs. Angels, VCs, public grants, etc. all bring different benefits but they also come with different strings attached.
Learn about the players. It’s not just about who you approach, but also how you approach them and at what time in your startup's development.
Truth #4: Fundraising is a marathon, not a sprint
Think long-term. Fundraising isn’t a single event, it’s an ongoing process until profitability or exit.
Start early. Begin your fundraising preparation well before you run out of runway to avoid dangerous cash flow crunches.
Plan for persistence. Expect multiple applications, meetings, and rejections before success.
The Bottom Line
At the xG-Incubator, our mission is simple: to help you succeed in developing your technology and bringing it into the marketplace. To achieve that we guide you through the four truths of fundraising and provide hands-on support every step of the way.
Truth #1: Fundraising is both an art and a science
Throughout our program, you’ll have multiple opportunities to pitch your idea or startup, from xG-Afterwork events to conferences and dedicated workshops. Our goal is to help you refine your story so it truly resonates with your target group.
At the same time, we’ll support you in strengthening your offering. Using the KTH Innovation Readiness Level, we’ll help you evaluate and advance all critical dimensions, including customer, funding, team, technology and IP readiness.
Truth #2: Fundraising and technology are two sides of the same coin
With our in-house expertise and tailored coaching, we’ll ensure you build both your entrepreneurial mindset and your technical foundation.
This emphasis is integral to both Phase 1 and Phase 2 of our program.
Truth #3: Fundraising is a street map with many possible destinations
As part of a thriving ecosystem, we’ll help you navigate the many pathways available to you.
Together with our in-house team and external coaches, we’ll prepare you for the real challenges of fundraising, from creating a winning pitch deck to building confidence in front of investors.
Truth #4: Fundraising is a marathon, not a sprint
Our program is designed for depth, providing space to tackle complex challenges more than once if necessary. We believe long-term success comes from innovation as well as consistency and resilience.
If you’d like to learn more about how our program can support you, we’d love to hear from you.