New reports in the EIC Scaling Club's “Challenge Roadmaps” series showcase the strategies the analyzed European deep-tech scale-ups plan to use to overcome critical challenges over the next 12 months.

These strategies include leveraging boards for market expansion, prioritizing customer acquisition and retention tactics, and focusing on due diligence and transparent deal preparation to attract lead investors.

“Nearly 60% of European deep-tech scale-ups lack formal boards, and only 35% of executives believe their boards effectively contribute to growth. Furthermore, 80%–90% of firms fail to secure funding after major pitching competitions due to weak investment theses, and 60%–70% struggle to attract a lead investor.

These three reports provide data-driven insights into these challenges. They showcase actionable recommendations and examples of how deep-tech companies can strengthen their boards, craft compelling investment narratives, and secure the funding they need to scale.

By sharing this knowledge, we aim to empower scale-ups and support stakeholders to make informed decisions and drive growth within the European deep-tech ecosystem,” says Josemaria Siota, Executive Director of the Entrepreneurship and Innovation Center at IESE Business School.

The study is based on literature reviews, workshops, interviews, surveys of international experts and EIC Scaling Club companies, and the analysis of the companies' data.

To see the all reports, visit this link.

Achieving market expansion with the help of strong boards

The top board-related challenge deep-tech scale-ups plan to tackle over the next 12 months is a more substantial focus on market expansion. Companies intend to leverage the boards' networks and experience to enter new markets, accelerate growth, and identify market trends. While prioritizing growth tactics, the analyzed scale-ups plan to decrease their boards' focus on investment strategies.

The report also identifies a notable misalignment between companies' and other stakeholders' views on the importance of boards' involvement in company governance. Other stakeholders perceive board independence and support in the CEO evolution and succession as more important than the companies themselves. 

See the full “Strong Board” report:

 

 

 

 

 

 

Putting funnel optimization in the spotlight to improve investment thesis

According to the report on challenges scale-ups face with their investment narrative, companies intend to focus on funnel optimization over the next 12 months. This includes improvements in customer acquisition efficiency, long-term retention, lifetime value assessment, and feedback processes.

The report indicates a shift from the previous priority – implementing pilot projects and use cases to ensure product and market fit. The need to focus on customer acquisition cost and long-term retention has been the primary misalignment between stakeholders and companies, with stakeholders emphasizing funnel optimization tactics more than companies. 

See the full “Investment Thesis” report:

Closing in on lead investors by validating the readiness of deals

The report on strategies to secure a lead investor shows a shift in priorities from market validation actions (customer base expansion, industry awards, etc.) to due diligence and deal preparation. It includes transparent documentation, alignment of expectations, collection of references from past investors, and creation of a friendly capital structure and investment terms.

The report identifies a significant misalignment in the importance that deep-tech companies and other stakeholders place on the long-term plans and scalability of scale-ups. Companies see this development area, including actions like developing a scalability roadmap and future funding strategy, as more critical, while other stakeholders value market validation tactics more.

See the full “Lead Investor” report:

About the reports

The “European Deep-Tech Scale-Ups: Challenge Roadmaps” reports “Strong board,” “Investment thesis,” and “Lead investor” are part of a series of 10 studies analyzing the challenges deep-tech ventures face during their growth journey – from commercializing their innovation and growing the business to attracting investment and contributing to the ecosystem.

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About the EIC Scaling Club

The EIC Scaling Club is a curated community where 120+ European deep tech scale-ups with the potential to build world-class businesses and solve major global challenges come together with investors, corporate innovators and other industry stakeholders to spur growth.

The top 120+ European deep tech companies will be carefully selected from a pool of high-growth scale-ups that have benefitted from EIC financial schemes, other European and national innovation programmes, and beyond.

The EIC Scaling Club is an EIC-funded initiative implemented by Tech Tour, Bpifrance (EuroQuity), Hello Tomorrow, Tech.eu (Webrazzi), EurA and IESE Business School.

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