What is a deep-tech startup, and how does it differ from other types of startups?

Sven: By the end of the day, a startup is a startup, but a few things are different. Usually, deep-tech startups are research-heavy and have patents or multiple patents supporting their technological approach.

Hanna: A deep-tech startup that focuses on solving complex scientific or engineering challenges by leveraging advanced technology that is often groundbreaking or innovative at its core. Unlike other types of startups that may primarily innovate in product, service delivery, or business models, deep-tech startups are rooted in substantial scientific research or technological innovation. They usually operate in fields like artificial intelligence, quantum computing, biotechnology, advanced materials, energy, and robotics, where their solutions are often based on scientific advancements that require specialized knowledge.

What unique challenges do deep-tech startups face compared to traditional tech startups?

Sven: Deeptech startups have their unique challenges as they usually are hardware or research-oriented, and they have long development cycles as compared to traditional startups e.g. classic SaaS model. Therefore, they need more technical support and skillful business mentoring during their development phase. Additionally, it’s tougher to raise private capital because long development cycles make them more risky investments.

Hanna: Deeptech startups face unique challenges, primarily due to their reliance on groundbreaking science and engineering, which requires long development cycles and high capital investments. Unlike traditional tech startups, they can’t typically bootstrap or launch with minimal resources; instead, they need specialized equipment, expert talent, and rigorous R&D, all of which are costly and time-consuming. Regulatory hurdles also add complexity, particularly for sectors like biotech or energy, where compliance is essential yet slows down product release. Additionally, deep-tech innovations often solve highly complex problems that may not have an immediate market, requiring these startups to invest in educating both investors and consumers on the value of their technology.

Hanna-Liis Remmelg, Business Incubator Manager

From your experience, what are the most common mistakes deep-tech startups make?

Sven: Not always, but quite often, they seem to forget the business part of the business. Usually, they are hardcore engineers or researchers, they don’t see the value of business development, sales, and marketing as they should. This makes the wider audience hesitant about technology because they simply don’t know the value that’s been there all along.

Hanna: A common mistake among deep-tech startups is underestimating the time and resources required for commercialization, leading to financial strain when they fail to secure adequate funding. They may also struggle with market positioning, focusing heavily on the technical aspects without aligning with customer needs or viable use cases. Many deep-tech startups also tend to overlook the importance of interdisciplinary talent, focusing solely on technical expertise and neglecting marketing, business development, and regulatory strategy. Additionally, because they are often founded by scientists or engineers, some deep-tech startups may prioritize technological perfection over faster market entry with viable, incremental solutions.

What value or benefits do deep-tech startups bring to the economy, society, or the innovation ecosystem?

Sven: Deeptech startups bring a firsthand smart workforce to the market as they employ the brightest minds in the field. As they are always pushing the boundaries of research and science, most deep-tech startups are on the verge of breakthroughs in different fields of life. They are the innovators willing to take the risk that the others aren’t. This is their way of supporting the whole innovation ecosystem.

Hanna: Deeptech startups provide immense value to the economy, society, and innovation ecosystem by addressing some of the world's most pressing challenges through advanced technologies. They drive economic growth by creating high-skilled jobs, attracting substantial investment, and fostering industries such as AI, energy, and biotech, which are crucial for future competitiveness. Societally, they tackle issues like sustainable energy, advanced healthcare solutions, and food security, which have far-reaching positive impacts. In the innovation ecosystem, deep-tech startups push the boundaries of what's possible, setting the stage for further breakthroughs and inspiring the next generation of technology-driven solutions.

Sven Lilla, Manager of Space Development

How do you define the differences between an incubator and an accelerator program?

Sven: Incubation programs are usually long-term – minimum one year and have more mentoring and sometimes a bit more laidback, giving startups time to breathe and digest all the information that they gather from workshops, mentoring sessions, and events. Accelerators, on the other hand - as the name suggests – accelerate. These are usually fast-paced, short term and intense depending on a goal e.g. for investment readiness or getting the company on the foot at first.

Hanna: Incubators and accelerators both support startups but serve different purposes and stages of growth. Incubators focus on nurturing early-stage startups, often providing them with mentorship, office space, and foundational resources over an extended period, sometimes lasting a year or more. These programs are ideal for startups that need time to develop their product and business models. Accelerators, on the other hand, are time-limited, intense programs, typically lasting a few months, designed to fast-track growth for startups with a minimum viable product. Accelerators often end with a demo day to showcase to investors, making them suitable for startups ready to scale and seek funding.

Give a brief overview of the Sparkup Inkubator and ESA BIC programs, including key elements or features.

Sven: ESA BIC offers 60,000 euros in non-equity funding with 50 hours of business support, 20 hours of technical support, and 10 hours of IP support. In addition, they have access to all other incubators and their companies all over the ESA BIC network in Europe. The highlights of the program are usually founders' meetings, sales masterclasses, and IP/Innovation workshops carried out annually.

Hanna: The Sparkup Incubator in Estonia is dedicated to supporting science-based and technology-intensive startups through a 12-month program that offers €10,000 in equity-free funding, access to mentors, workshops, and community events. The program is designed to help startups develop business skills, refine their product, and connect with investors, with a focus on key areas like sales, IP, leadership, and marketing. Participants also gain entry to events like sTARTUp Day and a supportive network for collaborative growth.

Describe a few of your incubation programs' flagship companies.

Sven: Crystalspace – one of our first selected companies in late 2017, whose camera systems will be on the moon with the ARTEMIS missions in the next few years. Their cameras will be guiding the robotic arm that will drill the moon's surface to gather samples.

Rightstep – a company on the borderline of HealthTech and spacetech that will carry out their product testing on the zero-gravity flight. They have a unique solution how to measuring bone loading, and now they will test in zero gravity conditions to improve astronaut training programs while deployed on the ISS.

UP Catalyst - UP Catalyst is an ambitious company that uses the technology of Molten Salt Carbon Capture and Electrochemical Transformation (MSCC-ET) for the production of sustainable carbon materials. CO₂ rich flue gases from heavy industry emitters are being used as a feedstock. They plan to use CO2 for O2 creation in the Mars environment.

Hanna: Gearbox Biosciences focuses on producing antibiotic-free proteins through innovative synthetic biology solutions, aiming to reduce the reliance on antibiotics in animal farming.

GScan specializes in advanced 3D muon tomography, offering precision scanning technology that enhances security and environmental applications by providing detailed scanning of structures and objects.

KIUD transforms textile waste into high-quality, sustainable packaging materials, providing a low-carbon alternative to traditional packaging and helping to reduce industrial waste.

When do the next rounds of applications open for ESA BIC and Sparkup Incubator?

Sven: The next cut-off of applicants for ESA BIC is in May 2025.

Hanna: The next round of Sparkup Incubator is open until spring 2025.


"Right Step: We are a company in its infancy; we need support to be able to flex muscles we don’t have, and we need to play a smart game to take steps forward on our mission. 

We recently participated in the European Space Agency's 85th Parabolic Flight campaign, and from proposal selection to delivery, collaboration with external expertise and knowledge proved invaluable to our success. Engaging with experts in the field of bone health, researching the latest ESA objectives and goals, and analyzing white papers allowed us to align with the decision-makers, ensure our goal met the needs of wider stakeholders, and ultimately strengthen our position. But acceptance is just the start. To deliver, we required support from businesses with skills that we lacked. Collaboration is a key element, but financing such collaborations is a talking point often missed. Who pays for these experts and businesses to help? Why should they help us?   

One source of support came from the ESA BIC Estonia, where mentors and finance are provided.

The flexibility of the BIC enabled us to maximize every resource, financial and intellectual, ensuring we stayed on track and achieved our goal. Not everything requires hard cash; some collaborators participated with us because it aligned with their agenda, while others engaged simply because they believed in our mission as passionately as we do. 

Company life should not be a lonely endeavor but one rich with diverse brains and experience. Without it, we would not exist. "

Sparkup Tartu Science Park has been a sTARTUp Day co-organizer since 2016.