Vertical Integrators: Part IV

That’s the difference to me between deep tech and Vertical Integrators. A deep tech company designs a product for optimal performance, taking on the risk of unproven science or technology to do so, while a Vertical Integrator designs a system for optimal performance, taking a risk on the combination of proven technologies.

Legacy Industrials , or Incumbents, have vertically integrated supply chains designed around older technologies and processes. Deep Tech companies have unproven technologies that, if they work, could be a very powerful building block for many businesses. Vertical Integrators integrate a number of cutting-edge-but-proven technologies; what they need... See more

As a founder, the goal then becomes to metaphorically peel each layer of the onion — Each fundraising milestone turning into a set of risks being evaluated and sidelined. The earliest investors become the partners to help figure out what to focus on. Good pre-seed angels and investors are often described as “having taste” for good startups — In tru... See more

Techno-Industrials are addressing larger markets than most software companies can.

They use whichever tools they need to provide better solutions to key bottlenecks with better unit economics than incumbents.

They are more capital efficient than most investors expect.

And they have to be more strategically sound than the average software company.

B... See more