Launch Deep Tech Event: The Challenges Startup Founders Are Tackling in 2023

Author: Elena Vrabie

To wrap up the year, the Launch Romania community, How to Web ’s tech startup entrepreneurs’ network to exchange resources, like expertise and capital, invited us to an event with deep tech founders in Bucharest, Romania.?

The purpose of this event was to better understand what deep tech is, what challenges founders face, and what they aim to tackle with their solutions.

But also to bring together different players, both public and private - tech startups and enterprises, to discuss the future of deep tech in Romania.?

What is deep tech??

Deep technology, which is also called hard tech, has the objective of providing innovative solutions based on scientific or engineering advances. This domain is different from general tech due to its vision of addressing larger societal issues, like climate change, food shortages, and alternative energy, to name but a few, as the following tech startups will showcase.?

Deep tech startups in Romania

Yesterday, I heard the stories of Adore Me , a fashion tech startup represented by Mihai Bizovi , Head of Data Science, and its CTOs, Bogdan Lucaciu . Followed by Footprints AI , a platform to leverage data, represented by Product Manager Horatiu Stan in the first panel.

In the second panel, I learned more about OxidOS Automotive , a deep tech startup offering tools for the automotive industry, represented by its co-founder and Business Development Manager, Daniel Rosner ; and Veridion , a live data enrichment tool, represented by its co-founder and CEO, Florin Tufan .?

These stories were complemented by Daniel Rizea , Director Software Engineer at 谷歌 ; Liviu Gherghescu , Senior Enterprise Architect at BCR ; the Romanian Minister of Innovation, Sebastian Burduja , as well as Dan Cimpean 's, the Director of the Romanian National Cyber Security Directorate.?

Daniel Rizea shared that developing technologies that cater to billions is both rewarding and needs a lot of processes. Liviu Gherghescu said that although Romania has an amazing talent pool, the secret ingredient is to level up its courage and come up with innovative solutions that clients can use.

"The government will match the funding by angel investors and venture capital funds to help businesses overcome that initial hurdle,” Minister of Innovation, Sebastian Burduja, explains.

As for the authorities’ vision of Romania’s potential in deep tech, you can read more here.?

But let’s deep dive into what these techies have been up to.?

What can deep tech do?

#1 Help fashion step down from being one of the biggest polluters.

Adore Me is a fashion tech startup that got acquired by Victoria’s Secret & Co. due to its sustainable growth and operational efficiency over the years. The team has been developing a solution based on smart algorithms to tackle inventory management.?

By using data from the past, engineers can estimate data in the future and can support managers to pick wisely, for example, how many products to order in a specific size or color, so there are fewer stocks in the end. This solution can downgrade the fashion industry from being one of the biggest polluters in the world.?

#2 Support retailers use more than 10% of their data, as they do now.

Footprints is an AI-driven media platform that helps users leverage anonymous traffic. Physical retailers use 10% of their data, and the rest is offline and forgotten. Therefore, in 2023, Product Manager Horatiu Stan mentioned in his presentation, retail media might be the new "gold rush".?

The market is valued at $100B, looking at a 30% growth year-to-year. By gathering data, and using an AI engine to predict media audience, all in one platform, the deep tech startup aims to reshape the industry.?

#3 Help you drive a safer car.

OxidOS is developing a secure operating system and the necessary tools for embedded software development in the automotive industry. Cars, but especially electric ones, have more than 100 microcontrollers. All these need personalized software so when one is faulty, it doesn’t bring the rest with it and make the car shut down.?

>>> You can read more about their solution, team, goals, and raising their first funding round in this insightful interview. <<<

#4 Get more out of real-time updated data.

Soleadify aims to support SMBs make informed decisions with their business data enrichment tool, which is based on real-time updates. Through AI and ML, they crawl the digital realm for public data and try to get more out of it.?

Deep tech founders’ challenges

In the end, the main takeaways from all the speeches regarding deep tech founders’ challenges are:

• As deep tech is based on a lot of R&D in biotechnology, quantum computing, and renewable energy, it takes more time to develop a solution, compared to the average product-market fit of a startup, which is between 12-48 months.?
• And time in this ecosystem needs to be supported by funds, and for investors to understand that ROI will involve a longer funnel.?
• Also, it would be great if private investors would be matched by the government.
• Deep tech is for the stoic engineers, passionate people that aren’t always easy to attract and retain.?
• Then, there are also the regulatory hurdles, certifications that take at least a year.?

? Bonus reads if you are craving some deep knowledge ?

• Eastern Europe: The Next Deep Tech Powerhouse? Here’s Why We Should Start with Universities
• How to Pitch Your Climate Deep Tech to VCs? An Investor Gives Us Some Hints
• 5 Web3 Trends That Will Go Big in 2023 According to Experts