Deep-tech startups often fold because they fail to strike a balance between the solution they have developed, the team, the market, and long-term thinking, but the good news is that this can be changed, making these high added-value businesses more viable, experts at the Deep Tech Atelier conference agreed.
The leading deep-tech conference Deep Tech Atelier has just taken place in Riga with a record number of participants – more than 2,000 participants from 62 countries, most representing Latvia, Germany, Estonia, Poland, Lithuania, and Great Britain.
On the last day of the conference, a panel of experts took to the main stage for a lively discussion on the most common mistakes in the development of deep-tech startups, what to learn from these mistakes, and how to do things differently. And this experience offers lessons for every entrepreneur.
"The main objective of Deep Tech Atelier is to promote high added value entrepreneurship in Latvia because Latvia offers a unique combination of a strategic location, modern research infrastructure and strong talent. Our startup-friendly policy offers 0% corporate tax and up to 45% co-financing for hiring highly skilled labour. We already have many success stories, but we believe that by learning from our mistakes and the mistakes of others, there can be more such success stories," said Ieva Jāgere, Director of the Investment and Development Agency of Latvia (LIAA).
Below are the key takeaways from the discussion, which featured Ieva Treija, editor of Labsoflatvia.com and co-founder of Finday, Daren Wilson, healthcare innovator and startup mentor, Annija Mežgaile, CEO of TechChill, and Kristaps Cīrulis, co-founder of Terrawaste and head of the Baltic Sustainability Awards.
What are the most common mistakes startups make and how can they avoid them?
#1 Over-reliance on technology – "the product will sell itself"
Many scientists and engineers are so focused on technology that they forget the needs of the market, including early end-user validation. For example, companies may believe that a breakthrough in the lab will automatically lead to a revolution in the market.
The solution: venture "out of the lab" more often and communicate with potential customers from day one, because there is no point in developing a technology if nobody needs it. Every technology needs a clearly defined go-to-market path and thinking in terms of "not just science for science's sake, but science for the market" or "how I am going to make money from this invention"
#2 Wrong team makeup
Lack of balance between technical and business expertise – team members do not know what they do not know, that is, they overestimate their capabilities. In healthcare or science, there is often a lack of clinical experts or specialists in a particular market.
The solution: build a balanced team of scientists, businesspeople and professionals who also understand the regulatory framework. Bring in advisors and experts early, even at the cost of a small share of the company's capital. Be honest about what expertise is lacked.
#3 Failure to raise funds at the right stage
In Latvia and Europe, there is a lack of support for the stage between an academic idea and market readiness, also known as the "valley of death", investors are reluctant and risk-averse. Entrepreneurs, and sometimes also investors and policymakers, lack an understanding of the duration and capital intensity of the deep tech development cycle – a marathon race, not a sprint.
The solution: explore support mechanisms offered by the state. For example, LIAA offers different support tools for a company at each stage of its development. For instance, at the idea development stage: training, mentor support during pre-incubation, the "Idea Cup" competition and its cash prizes for the development of new sidea; for young entrepreneurs: incubation programmes, innovation vouchers, startup support; and for experienced entrepreneurs: mini MBA "Innovation Management", support for digitisation of processes, trade missions and other forms of support. Find out more here: https://business.gov.lv/.
#4 Ignoring or not understanding the regulatory environment and framework
Regulatory awareness is particularly important in the medical, pharmaceutical and energy industries. In general, a lack of knowledge about the need for certification and data validation can mean delayed market entry, or none at all.
The solution: bring additional expertise into the team or outsource.
#5 No patience or unpreparedness for a long-term process
Deep-tech companies rarely become "unicorns" in just a few years. Many do not even realise that the norm is 5-10 years until first profit.
The solution: think about financing in the long term. It requires patience and a strategy for at least 5-7 years, and it is advisable to attract investors who understand the specifics of deep tech. Seek grants, co-investments and "smart money" sources.
#6 Not involved in communities, not open to collaboration
"I know best" mentality or reluctance to tell about your technology. Lack of communication with other ecosystem members, for example, universities, corporations, policymakers. This is not just about Latvia, as ecosystems in Europe as a whole are fragmented and cooperation is insufficient.
The solution: engage in the innovation ecosystem. Participate in conferences, accelerators, associations, corporate cooperation programmes. For example, you can register early for the 2026 Deep Tech Atelier conference in Riga that will be held on 14 and 15 May.
Participants in the discussion agreed that an important step to encourage young entrepreneurs to focus on developing new technology is to share not only success stories but also failure stories. Failures should be acknowledged and normalised, they are not an embarrassment but part of the innovation process.
Deep Tech Atelier conference was held for the seventh time in 2025 and was the most ambitious to date, with 76% of participants attending the conference for the first time. The overwhelming majority of attendees, 46%, went to the conference to make new contacts and partnerships, 29% for new knowledge, 16% to learn about industry trends, 12% to be inspired, and another 4% to share their experience.
The Deep Tech Atelier 2025 EXPO brought together 32 participants who presented their solutions to the audience. More than 180 speakers in total took to the three stages at the conference.
More information about the conference is available here: https://deeptechatelier.com/.
LIAA acts as a national partner in business development – from an idea to international markets. With an extensive network of representative offices abroad and regional business centres in Latvia, LIAA helps companies grow and position Latvia as a safe, innovative and open country in the global economy.
The cooperation partners of Deep Tech Atelier 2025 are Labs of Latvia, Hello Tomorrow, Riga Technical University, University of Latvia, Riga TechGirls, Latvian Space Industry Association, international science commercialisation platform Commercialisation Reactor, and others.
The event funding is provided by the ERDF projects “Development of Innovative Entrepreneurship of SMEs” and “Support for Improving Technology Transfer System”, the Recovery and Resilience Facility, and the state budget.
The views and opinions expressed are those of the author(s) alone and do not necessarily reflect the opinion of the European Union or the European Commission. Neither the European Union nor the European Commission is responsible for these views and opinions.
Further information for media representatives:
Tija Ezeriņa
Public Relations Adviser for Deep Tech Atelier 2025
M: 29719893, E: tija.ezerina@publicid.lv