By Toni Pienonen, Mikko Korpela & Katerina Salmi, Crazy Town Oy
The DT Launchpad (DTLP) project supports deep tech commercialisation across Europe. Deep tech startups have the potential to drive significant innovations and create new jobs, so we were excited to contribute to this effort. Before launching a training program and other activities across Europe, we at Crazy Town and other partners focused on understanding the current landscape.
As we prepare to publish our findings, one key takeaway has emerged – the crucial role of fostering an entrepreneurial mindset and culture
The initial premise of the DTLP project stated that deep tech commercialisation has three stages: pre-incubation, incubation, and acceleration. However, our discussions with Finnish stakeholders revealed that an even earlier stage is vital. Developing an entrepreneurial mindset and culture as a foundational step is essential for creating a thriving ecosystem.
“Current focus is not where it should be! Finland has a huge pipeline issue, and way too little happening in the mindset and culture-building stage. We need more people and activities at the beginning of the funnel to create high-quality ventures. Decision makers need to understand that we need grassroots numbers early on,” said one interviewee.
This observation highlights the need to establish a strong base early in the process, ensuring that those entering the ecosystem are not just technically proficient but also equipped with the mindset necessary to navigate commercialisation’s complexities.
Understanding the funnel approach
Deep tech commercialisation can be visualised as a funnel. At the wide top, thousands of individuals engage in entrepreneurial activities, but only a fraction of these efforts lead to viable ideas, startups, and eventually, successful scale-ups.
For example, out of 10,000 individuals participating in entrepreneurial activities, about 1,000 may develop ideas, leading to the creation of 100 startups, of which only 10 might scale successfully. Each stage of this funnel acts as a filter, with many ideas and projects dropping out due to technical, market, or financial challenges. This attrition underscores the importance of strong foundations in entrepreneurial mindset and culture from the very beginning.
“All institutions and regions in Finland share the challenge of culture, mindset, and lack of awareness about opportunities,” remarked another participant. This reflects a common issue across deep tech ecosystems, where early-stage idea development and entrepreneurial activity often lack the necessary cultural and mindset support.
Entrepreneurial mindset and culture build the foundation
Building a strong entrepreneurial culture is essential at the beginning of the funnel. Without it, the rest of the commercialisation process struggles to function effectively. Deep tech ventures require not only technical expertise but also business acumen, resilience, and the ability to navigate complex markets. These skills and attitudes must be cultivated early on.
Grassroots initiatives like those led by Aaltoes (Aalto Entrepreneurship Society) are critical in this stage. They provide real-world entrepreneurial experiences and help build a community that supports innovation. Activities such as networking events, hackathons, and startup competitions are essential for nurturing the mindset required for deep tech commercialisation.
Student-driven activities have been particularly influential in Finland. One roundtable participant noted, “Students and volunteers have built many of Finland’s leading startups and scaleups, nurtured the community, and taken responsibility for building the initial stages of the ecosystem.”
The risks of ignoring the entrepreneurial stage
When the early stages of developing an entrepreneurial mindset are overlooked, the entire ecosystem suffers. Finland’s deep tech ecosystem, despite its strengths, faces challenges in scaling ventures, partly because not enough attention is given to fostering entrepreneurial culture early on.
Finnish deep tech teams often lack members with business skills and commercial experience, which can slow down the commercialisation process. “You need a credible team with experience. Investors and partners need to see that the team has the capability to execute the vision,” said one interviewee.
Many interviewees mentioned that students and entrepreneurs with business experience should play a more engaged role in building companies. Having a strong foundation helps bring these individuals into the fold, allowing them to contribute more effectively to the development and scaling of deep tech ventures.
Key points for building a thriving deep tech ecosystem
To develop a robust deep tech ecosystem, efforts to build an entrepreneurial mindset and culture must be intentional from the very beginning. This involves several key actions:
Support grassroots initiatives: Back initiatives like Aaltoes that provide hands-on entrepreneurial experiences. These programs are vital for fostering the mindset needed for deep tech commercialisation.
Encourage broad participation: Entrepreneurial activities should be open to students, researchers, and non-technical individuals who can contribute to the commercialisation process.
Focus on quality: While engaging large numbers of people is important, the quality of these engagements is crucial. Programs should aim to develop individuals who are not only interested in entrepreneurship but are also equipped to succeed in it.
Are you playing football or basketball?
Finally, while quantity is necessary to maintain a healthy pipeline of ideas and potential startups, the focus must also be on quality. This balance is essential to ensure that the ventures that do emerge from the funnel have the potential to succeed and scale.
In traditional tech startups, the approach can often be compared to playing basketball—focused on scoring many points quickly. In contrast, deep tech ventures are more akin to playing football, where strategy, teamwork, and a few well-executed goals are more important. One interviewee put it:
“Comparing traditional startups to deep tech is like comparing two different sports. If you’re training for football, you don’t train like you’re playing basketball. The same principle applies here. In traditional startups, the goal is to score as many points as possible. It’s about traction, speed, and winning markets quickly. You need to play a lot of points—the game ends with hundreds of them. But with deep tech, it’s like playing football where you only score a few goals. You can’t apply the same rules of traction and speed to deep tech as you do with generalist SaaS startups.”
This analogy highlights the need for a different approach to nurturing deep tech startups. It’s not just about the numbers; it’s about ensuring that the few ventures that make it through the funnel are equipped with the right mindset, culture, and support to win the selected battles.
Our interviews in Finland noted that to create a deep tech ecosystem capable of competing globally, it is essential to start with a strong foundation of entrepreneurial mindset and culture. This approach will not only increase the number of successful startups but will also enhance their ability to scale and thrive in the global market. The DTLP project will publish the report on Finland (and other participating countries) as well as offer other activities soon.
