Designing and Testing a Tool That Connects the Value Proposition of Deep-Tech Ventures to SDGs

Abstract

Deep-tech startups have enormous potential to solve major societal challenges, but their failure rates are quite high (above 90%). In this respect, deep-tech systems and products have long development times and thus require substantial amounts of investment capital long before the first customer can be served. Moreover, potential investors increasingly expect that the value proposition of a deep-tech venture has a clear sustainability dimension. We therefore designed a tool that serves to develop a convincing value proposition for investors, one that is explicitly connected to the Sustainable Development Goals (SDGs) of the United Nations. We adopted a design science approach to develop and test this tool in the context of a deep-tech venture builder located in the Netherlands. The final tool arising from this study extends and integrates various existing tools with an explicit connection to the SDGs. As such, this tool enables deep-tech entrepreneurs to develop a value proposition that is more likely to attract early-stage investors.