The first supersonic plane after the Tupolev. The synthetic biology revolution, Flying taxis. A vaccine for COVID developed in nine months with a novel mRNA approach… What do these innovations all have in common? They are all driven by deep tech ventures. Also, they represent only a small fraction of what start-ups can achieve today.

META investment readiness program 

The potential is huge and concrete. Just look at Tesla and SpaceX to see how new ventures can turn industries upside down to grasp deep tech’s potential. Despite all its potential, there are still several challenges to the growth of deep tech. One of the main is accessing early-stage funding.

In this context, META, under InvestHorizon project, has supported more than 200 European early-stage deep tech ventures. That was only over the last three years. In total, they have ultimately raised more than 230M€, with an average ticket of 2,5M€. In other hand, they had an average timeframe to close a deal after participating in the program of 9 months. How have we been able to achieve these results?

We offered a different -new approach- to address investment readiness based on two main elements:

1. Peer-to-peer approach. Exchanging experiences with other CEOs: CEOs of deep tech start-ups received feedback on specific business challenges from other European deep tech peers.
2. Presenting to investors. Getting in touch with the right investors: deep tech startups were matched and presented to tailored groups of deep tech investors.

How to secure VC funding

Deep tech investment is on the rise. Recently, disclosed funding amounts increased from about $15 billion in 2016 to more than $60 billion in 2020. Nevertheless, deep tech ventures experience issues moving from grant funding to equity. Almost 50% of grant-funded deep tech ventures require several rounds of grants before succeeding at attracting VC funding. This is confirmed by the latest BCG and Hello Tomorrow survey. 41% of deep tech ventures stated that “there is more security with grant funding than with equity funding.”

Paradoxically, investment “dry powder” is at record levels (with a total of $1.9 trillion in December 2020, of which $1.1 trillion is in Private Equity; $331 billion Venture Capital; and $250 billion is Growth Capital). These record sums are driven by PE & VC funds raising capital from LPs more easily than ever before.

Therefore, although there is a lot of money in the VC ecosystem. Even if VC investors are aware of the huge opportunity behind deep tech, early-stage enterprises are struggling in fundraising compared to their “cousins” in the digital landscape.

Why is this happening? There are many different reasons behind this, however, most of them are related to VC industry standards and ecosystem issues. So, if deep tech venture founders would like to increase their chances to raise money, what should they do?

To secure VC

Deep technology is usually developed by privileged researchers in well-equipped laboratories operating within a small community of vertical experts. Thus, deep tech entrepreneurs are often scientists who are passionate about their technology. They are excellent at science, but less able to build the narrative that start-ups need to capture the attention of investors, thus, they are not “investor ready”. Investment readiness is the capacity of an entrepreneur, who is looking for finance, to understand the expectations of an investor and to be able to respond to them.

This is the reason why it is crucial for deep tech teams to increase their investment readiness if they are looking to raise funds.

European landscape

To better understand how deep tech start-ups address investment readiness issues and which solutions they adopt, META Group interviewed 45 CEOs of such companies.

The main challenge to access funding for deep tech start-ups in EU is the proper matching with the investors, as 34% of the interviewees identified it as the biggest obstacle. In the same way, CEOs find it difficult to identify and access the right network of investors, as starting from scratch could be frustrating.  In addition, respondents warned about the difficulty of meeting the investors’ expectations when approaching them. Last but not least, creating the right narrative (pitch deck) to investors it is also a big challenge.

How are start-ups dealing with these access-funding problems? Nearly a 40% of interviewees, are participating in pitch events and workshops with the aim of increasing their investors’ network. Others are seeking external support, such as consultants, bankers or incubation programs.

It has to be noted that, more than 30% of CEOs interviewed stated that they have to spend too much time in scouting for investors, presenting and participating in pitch events and even these solutions do not guarantee any success. They said how frustrating it is to spend time pitching at events and then having to realise that the investors’ network behind it is poor or not tailored, or not receiving feedback from investors after the pitch. Finally, respondents stated that incubation programs available in the industry are too standard, covering basic topics based on “frontal lessons” that do not bring value to the participants.

Are you a deep tech early-stage investor interested in accessing top quality deal flow or are you a deep tech venture CEO willing to increase your investment readiness? Email us at info@meta-group.com.

Ingenium Sardegna, gestito da META Ventures, ha contribuito alla crescita del business di B-Shiver. Oggi fa parte, insieme a Nuova Novamarine, Sno Marine Service e Sno Marine Center, del nascente distretto della nautica di Olbia. Oltre duecentomila metri quadrati in cui sorgerà il nuovo polo della nautica del Mediterraneo, il cui sviluppo parte dalla Sno. Anche passa per l’acquisizione delle aree della ex fabbrica della Palmera a Su Arrasolu e dei capannoni nell’ex cantiere della International Boat Service.

Exit di Ingenium Sardegna

Nel nuovo stabilimento della Novamarine, i fratelli Pirro stanno completando lo spostamento della produzione. Qui sta sorgendo, su un’area di 8 mila metri quadri, anche un centro servizi e di assistenza.

Sno e Novamarine sono due realtà imprenditoriali che contribuisco a creare occupazione nel territorio. Quest’ultima impiega circa 60 addetti diretti e 60-70 indiretti. «Il progetto Marine Center – sottolinea Pirro, Ceo di B-Shiver – prevede la nascita di una cittadella della nautica con 79 yacht garage da 25 a 30 metri di lunghezza. Chi li occuperà potrà svolgere i lavori di rimessaggio o affidarli a terzi. Formeremo grandi competenze, da motoristi ed elettricisti a carpentieri. Poi effettueremo lavori di personalizzazione degli interni, verniciature. Tutto in collaborazione con le più grandi e importanti case nautiche del mondo».

Un risultato importante, con significative ricadute per l’economia sarda che contribuisce a promuover nel mondo l’eccellenza del made in Italy.

META Ventures (MV) è un gestore di fondi a livello internazionale specializzato in investimenti early-stage in società innovative e ad alta crescita. Con oltre 20 anni di esperienza, MV ha investito in più di 100 società in Italia, Polonia, Slovenia e Belgio. Vanta una gamma unica di partenariati pubblico-privato tra incubatori e acceleratori di imprese, club di business angel, imprese, autorità di sviluppo regionale, governi nazionali e istituzioni dell’UE.

Benefits of the product

The acquisition represents the final outcome of the public tender organised by Slovenian Sovereign Holding (SSH or Slovenski državni holding, SDH), published at the end of February 2020.

This deal confirms the good relations in the  10-year partnership in META Ingenium. META Ventures, who remains at the same time the sole shareholder of the VC and its management company, will continue to manage four active investments out of 10 early-stage firms initially making part of the portfolio with the total invested value of just over 8 million euro. These include equity stakes in Apartmaji,com, DS Meritve, ORPE, a part of OR Productivity, UK, and BIA Separations, the latter one being the most attractive investment in the portfolio.

Purchase price and other details of the deal between META Ventures and SSH remain confidential.

“We are pleased that we have found a sound agreement with the SSH”, explained Luigi Amati, CEO of META Ventures. “We are thankful to SSH and SEF (Slovenian Entrepreneurship Fund, or SPS, Slovenski podjetniški sklad) for their 10-year partnership. The deal gives an opportunity to us to continue to support the most prosperous firms in the portfolio and maximise the returns at exits. We are confident that the active companies in the portfolio will demonstrate their agility in this uncertain period and continue to grow further.”

In 2019, the portfolio companies made nearly 15 million euro in revenues with the chances to sustainably improve performance, mostly thanks to the contribution of BIA Separations.

“We are eager to demonstrate what early-stage investors and venture capital can do to contribute to innovation, job creation and sustainable growth through the performance of our invested companies, driven by extraordinary entrepreneurs,” also emphasised Amati.

META Ventures is an investment company, specialised in early-stage equity financing what represents one of three core businesses of META a group providing innovation services across europe. META Ventures has so far invested more than 100 million euro in over 100 high-growth startups across Europe. META, established in Rome, Italy, more than 27 years ago has its operating seat in Brussels and is strongly engaged in Advisory, helping clients as diverse as individual cities or the European Commission develop better policies and programmes for promoting innovation and fostering startups. META’s third arm, Academy, deals with achieving impact from a research activity, particularly by leveraging upon research projects results and by conceiving, launching and growing knowledge-intensive high growth companies.

META has been present in Slovenia for more than two decades and currently manages funds also in Italy and Poland.

This deal confirms the good relations in the  10-year partnership in META Ingenium. META Ventures, who remains at the same time the sole shareholder of the VC and its management company, will continue to manage four active investments out of 10 early-stage firms initially making part of the portfolio with the total invested value of just over 8 million euro. These include equity stakes in Apartmaji,com, DS Meritve, ORPE, a part of OR Productivity, UK, and BIA Separations, the latter one being the most attractive investment in the portfolio.

Purchase price and other details of the deal between META Ventures and SSH remain confidential.

“An opportunity to keep supporting the most prosperous firms”

“We are pleased that we have found a sound agreement with the SSH”, explained Luigi Amati, CEO of META Ventures. “We are thankful to SSH and SEF (Slovenian Entrepreneurship Fund, or SPS, Slovenski podjetniški sklad) for their 10-year partnership. The deal gives an opportunity to us to continue to support the most prosperous firms in the portfolio and maximise the returns at exits. We are confident that the active companies in the portfolio will demonstrate their agility in this uncertain period and continue to grow further.”

In 2019, the portfolio companies made nearly 15 million euro in revenues with the chances to sustainably improve performance, mostly thanks to the contribution of BIA Separations.

“We are eager to demonstrate what early-stage investors and venture capital can do to contribute to innovation, job creation and sustainable growth through the performance of our invested companies, driven by extraordinary entrepreneurs,” also emphasised Amati.

META Ventures is an investment company, specialised in early-stage equity financing what represents one of three core businesses of META a group providing innovation services across europe. It has so far invested more than 100 million euro in over 100 high-growth startups across Europe. META, established in Rome, Italy, more than 27 years ago has its operating seat in Brussels and is strongly engaged in Advisory, helping clients as diverse as individual cities or the European Commission develop better policies and programmes for promoting innovation and fostering startups. META’s third arm, Academy, deals with achieving impact from a research activity, particularly by leveraging upon research projects results and by conceiving, launching and growing knowledge-intensive high growth companies.

META has been present in Slovenia for more than two decades and currently manages funds also in Italy and Poland.

See here for more information on META Group: www.meta.group.com .

Further information and contact: Jurij Giacomelli, investment manager, MI, j.giacomelli@meta-group.com

The fund reached this milestone with the support of the European Investment Fund (EIF) whose EUR30 million investment, partially from Cassa Depositi e Prestiti (CDP) resources through the ITAtech platform, is supported by the European Union’s InnovFin programme.

EUREKA! is the first independent venture capitalist in Italy focused on deeptech investments. In other words, in start-ups, spin offs and SMEs connected with Research Centres and Universities which have the aim of enhancing the results of their scientific research activities on the market, promoting innovative and often frontier technologies, innovations and technologies that can have a profound impact on people’s lives, the environment and society at large.

META Group supports Eureka! Venture and Anna Amati, who is the Vice President of META Group, is one of its fund managers. Read more about Anna’s views on the Eureka! fund here.

Eureka! Fund I – Technology Transfer” focuses on investments in Advanced Materials and more generally in applications and technologies related to Materials Science and Engineering. The Fund invests in proof-of-concept, seed and Round A stages, also thanks to the partnership with 22 universities and scientific research centers in Italy.

EUREKA! Fund I – Technology Transfer investors

The European Investment Fund (EIF) and CDP are the anchor investors in Eureka! Fund I through the ITAtech platform, created to support Technology Transfer initiatives capable of enhancing Italian scientific and technological research. Eureka! Fund I has the support of InnovFin Equity and of the European Fund for Strategic Investments (EFSI).

The first closing of Eureka! Fund has reached the initial size of 38 million Euro. Thanks to the decisive contribution of EIF and CDP and other institutional investors, such as Compagnia di San Paolo in Italy.

Find out more about the Eureka Fund here.