EIC Scaling Club report flags customer engagement as the top go-to-market challenge for European deep-tech scale-ups

Brussels, July 29th 2024
Summary
  • The EIC Scaling Club report finds securing and engaging customers is the top go-to-market challenge for European deep-tech scale-ups.
  • Other frequent obstacles are sales execution, business expansion, market positioning, and operational efficiency.
  • The study is based on interviews, workshops and surveys with 43 experts and primary data from EIC Scaling Club companies.
  • Scale-ups and stakeholders disagree on priorities, with companies focusing on reach and sales while stakeholders emphasise competition analysis, business model optimisation and production scalability.
  • The report is the first of a 10-part series and includes practical do and don t recommendations, a self assessment tool and suggested OKRs and KPIs.

Why the EIC Scaling Club report matters for European deep tech

A new report from the EIC Scaling Club, an EIC Business Acceleration Service, sets out the top go-to-market challenges European deep-tech scale-ups expect to face over the coming 12 months. The headline finding is familiar but still important. Scale-ups rate securing and engaging customers as their most pressing problem. Other frequently cited constraints include closing sales, expanding into new markets, positioning in competitive fields and improving operational efficiency.

The report is based on interviews, workshops and surveys with 43 participants drawn from deep-tech companies, investors, corporations, policymakers and mentors. It also analyses primary company data from a subset of EIC Scaling Club members. The study is framed as the first of a 10-part Scaleup Series designed to map common challenges across the growth journey of European deep-tech ventures.

What counts as a go-to-market challenge in deep tech

Deep-tech definition:Deep tech refers to companies building innovations rooted in scientific discovery or difficult engineering that address fundamental problems. Examples include quantum, photonics, advanced materials, next-generation computing, novel medical platforms and energy systems. These companies typically face longer development timelines, higher capital intensity and greater technological and market risk than software-only ventures.
Go-to-market definition:Go-to-market refers to the coordinated set of choices and activities a company uses to bring a product or service to customers. That includes market selection, value proposition design, sales model, distribution channels, pricing, operational readiness and the metrics used to steer execution. The report cites an external estimate that only 29 percent of senior executives believe their organisations implement go-to-market effectively, underscoring the difficulty of the task.

Five core development areas and priority actions

The report organises go-to-market work into five core development areas. For each area it lists four priority actions. The authors then examine which actions companies focused on in the prior 12 months and which they intend to prioritise over the next 12 months. They also compare companies responses with those of other stakeholders to surface misalignments.

Core development areaPriority actions
MarketTarget and forecast segments, Regulation and risk assessment, Competitive analysis and positioning, Personas and customer journeys
CustomerCustomer list and targeting, Value proposition and technical refinement, Channel and delivery optimisation, Pricing and business model design
SalesSales forecasting, Sales leadership and targets, Hiring and training sales teams, Partner and reseller development
ExpansionMarketing and inbound lead generation, Media and industry recognition, Geographic expansion, Industry or product expansion
OperationsOKRs and KPIs, CRM and ERP systems, Digital sales and service support, Production scalability and brand standardisation

Top findings and the shifts the report highlights

Key quantitative and qualitative points from the study include the following. First, engaging customers ranks highest among near term priorities. Second, companies report shifting emphasis toward widening customer reach and improving delivery, strengthening sales forecasting and tightening OKRs and KPIs. Third, a consistent misalignment exists between what scale-ups plan to do and what investors, corporates and policy stakeholders say they value most.

Misalignment explained:Scale-ups plan to increase customer reach, invest in product marketing, grow sales teams and optimise business metrics. Stakeholders by contrast place higher relative value on systematic competitive analysis, business model optimisation, ensuring production scalability, brand standardisation and a rigorous metrics framework. That gap matters because it can slow investment decisions and hamper productive collaboration between companies and partners.

Practical guidance from the report

The report does not stop at diagnosis. It includes 30 practical do s and don ts grouped against the five development areas, plus a self assessment tool, example objectives and key results and a suggested KPI dashboard to help companies build a six month improvement plan. The guidance mixes tactical moves such as running targeted pilots and automating repetitive processes with strategic moves such as choosing the highest value market segments and preparing production for scalability.

Selected do s and don ts by area

Market do s and don ts:Do validate market assumptions by speaking directly to customers and segment the addressable market. Do forecast the serviceable market realistically. Do not rely on untested hypotheses. Do not treat all market segments the same.
Customer do s and don ts:Do run frequent customer discovery and iterate the value proposition according to feedback. Do prioritise customer education for complex products. Do not stop incorporating feedback after the first sale. Do not use overly technical or vague propositions that do not state customer value.
Sales do s and don ts:Do train sales teams to manage longer, knowledge heavy sales cycles common to deep tech. Do use data driven forecasting and channels optimisation. Do not underestimate the need for specialist sales skills. Do not ignore analytics that could refine the sales model.
Expansion do s and don ts:Do pilot market entry with local partners and phased rollouts. Do invest in thought leadership and industry recognition for credibility. Do not assume your domestic playbook will translate overseas without adaptation. Do not ignore regulatory and cultural differences.
Operations do s and don ts:Do automate repetitive tasks, standardise processes where that improves reliability and adopt CRM and ERP systems early. Do set and monitor OKRs and KPIs to guide decisions. Do not let process standardisation create inflexibility. Do not postpone building production scalability planning until late in the growth curve.

Suggested OKRs and KPIs

To help execution the report offers example objectives and measurable key results for the five areas. It also lists recommended KPIs that are immediately actionable. The examples are generic and intended to be adapted to company context and maturity.

AreaExample objectiveExample KPIs
MarketAchieve market leadership in target segmentMarket share, segment penetration rate, forecast accuracy
CustomerIncrease customer base and retentionCustomer acquisition cost, retention rate, Net Promoter Score, customer satisfaction index
SalesGrow annual sales and average deal sizeSales growth rate, sales target achievement rate, average deal size
ExpansionEnter new geographies and industries with tractionNew market entry success rate, revenue per new market, media and industry recognition metrics
OperationsImprove operational efficiency and data driven decision makingOperational efficiency ratio, system integration level, percentage of decisions driven by OKRs and KPIs

Methodology and sample

The research combined a literature review with four in-depth expert interviews and four workshops. A wider survey and workshops engaged 43 experts in total from scale-ups, investors, corporates, media and policymakers. The study triangulated qualitative inputs and quantified priorities by counting and ranking responses.

Sample metrics and scope:The analysis used primary company data from a subset of EIC Scaling Club members. At the time of publication the broader group included 48 companies with an average reported valuation of 57.8 million euros and an average amount raised of 34.8 million euros. The report also draws on external industry data, including a cited figure of about 52 billion US dollars raised globally for deep-tech VC in 2020 to 2022, presented as roughly 47.7 billion euros.

About the EIC Scaling Club and the Series

EIC Scaling Club explained:The EIC Scaling Club is an EIC funded curated community of over 120 high growth European deep-tech companies. Launched in 2023, the Club connects scale-ups with investors, corporates, policymakers and mentors. The initiative is implemented by a consortium that includes Tech Tour, Bpifrance EuroQuity, Hello Tomorrow, Tech.eu, EurA and IESE Business School.

This report is the first of a planned series of 10 roadmaps that will examine recurring challenges faced by deep-tech ventures as they commercialise and scale. The authors and contributors include IESE researchers and a range of external experts. The document includes a Creative Commons licence and a disclaimer that the scientific output does not represent an official policy position of the European Commission.

Context in the wider EU innovation ecosystem

Deep-tech scaling is an explicit policy priority for EU institutions. The European Innovation Council, the EIC Fund and the EIC Business Acceleration Services offer funding, coaching and curated networks intended to close gaps in late stage capital, corporate partnerships and international expansion. The EIC BAS and related programmes target matching deals, procurement pilots and investor readiness support among awardees. The Scaling Club sits inside that constellation as a community and insight generator.

EIC Business Acceleration Services in brief:EIC BAS provides services such as corporate partnership programmes, global expansion support, procurement assistance, investor outreach and coaching. Since 2021 the EIC reports thousands of one-on-one meetings, hundreds of deals and significant capital mobilisation linked to its services. These figures are useful to show scale but they are reported by the programme and require independent verification when used as evidence of systemic impact.

Limitations and cautious interpretation

Readers should interpret the findings with care. The sample is skewed toward companies already affiliated with the EIC Scaling Club and similar networks. The total number of experts consulted is modest and the company subset analysed is limited in size. The report itself acknowledges challenges such as industry terminology ambiguity and heterogeneity in company maturity, sectors and geographies. Those caveats reduce how far the findings can be generalised across the whole European deep-tech population.

The misalignment between companies and stakeholders is an important signal. It does not prove causal relationships between particular company actions and funding outcomes. It does however point to practical friction points that funders, corporates and scale-ups should address if they want to accelerate commercialisation.

What this means for founders, investors and policymakers

For founders the report offers a pragmatic checklist and a recommended metrics dashboard. The consistent advice is to pair customer facing activity with rigorous market intelligence and with production and brand readiness. For investors the report signals where portfolio companies may need hands on operational support rather than only capital. For policymakers the misalignment highlights the value of programmes that bridge company focus and stakeholder expectations, for example via matchmaking, procurement pilots and co funded services that target business model validation and production scale readiness.

Where to read the full report and next steps

The EIC Scaling Club report European Deep Tech Scaleups Go To Market Strategy is available on the EIC Scaling Club reports page. It is the first in a series of 10 roadmaps. The Club also offers recorded presentations, a self assessment tool and additional market roadmaps that companies and advisers can use to build six month action plans.

Methodology summary table

MethodDetails
Literature reviewAcademic journals, industry reports and secondary data to frame core areas
In depth interviewsFour semi structured interviews to validate indicators and framework
Workshops and surveyFour online and onsite workshops plus a broader survey engaging 43 experts
Primary company dataSubset of EIC Scaling Club companies, N about 48 for group metrics, with averages reported
AnalysisCoding and classification of qualitative inputs, quantification of priorities and peer review

Final note

The EIC Scaling Club s report provides a useful, practitioner focused snapshot of go-to-market priorities among a set of European deep-tech scale-ups and stakeholders. Its practical levers and templates will be useful to many founders. At the same time the modest sample and insider orientation mean the findings should be treated as directional. Further independent and larger scale studies would help validate which priority actions most reliably correlate with faster commercial traction and successful scale.