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How a Deep Tech Startup Simplified Their Way to Success: Lessons from Celadyne Technologies
A scientist walks into a biohacking space during a global pandemic, carrying breakthrough technology that could revolutionize hydrogen fuel cells. It sounds like the setup to a Silicon Valley joke, but for Gary Ong of Celadyne Technologies, it was the moment that transformed his company’s go-to-market strategy.
In a recent episode of Category Visionaries, Gary shared how being forced into a 100-square-foot biohacking space during COVID-19 led to an unexpected revelation about product development and commercialization. “No amount of marketing can save a bad product, but a good product can save even the shittiest marketing,” Gary notes, crystallizing a lesson that would reshape his entire approach to bringing deep tech to market.
The journey began with what seemed like perfect timing. “We got our first million dollars in grant funding… I recruited, I was so proud of myself that I managed to like hire four people by the end of February, in a month of 2020,” Gary recalls. Then March arrived, bringing with it a global pandemic and an eviction notice from Argonne National Lab.
Faced with maintaining payroll and development momentum in a fraction of their original space, Gary’s team made a crucial discovery. Their revolutionary proton exchange membrane technology, while scientifically groundbreaking, was trying to solve too many problems at once. “It was actually good at blocking gases, but also lets you increase the temperature profile of your device. It lets you operate with less water and lower humidities,” Gary explains.
This complexity, while impressive in an academic setting, was creating significant commercialization challenges. The breakthrough came when Gary approached the problem with a software mindset: “If I think of this as software instead of hardware for a minute and consider all these things as feature sets, which one is the most important for you?”
Customer feedback quickly revealed that gas permeability was the primary concern, with other features being secondary. This insight led to a dramatic simplification: “If all you cared is about blocking gases and you didn’t care about the temperature thing or everything… I can cut all that out of my commercial development, and that shaves off almost eleven months worth of development.”
The pivot wasn’t just about feature reduction. It enabled a fundamental shift in their development approach, moving from organic chemistry to water-based systems. “If we can move everything water, then suddenly subleasing a bio lab doesn’t sound as crazy anymore because you can’t do organic chemistry in a biolab, but you sure as hell can do water chemistry in a bio lab,” Gary explains.
This simplification accelerated their timeline dramatically. “Once we made that pivot, we were able to ship materials six months later. It was incredible,” Gary notes. The company’s approach to customer integration also evolved, focusing on making their technology additive rather than disruptive. “Our technology bolts on to the current state of the art and basically has very little drop in problems,” he explains, highlighting how this approach reduced adoption barriers for major manufacturers.
For technical founders, particularly those coming from research backgrounds, Gary’s experience offers a crucial lesson about the transition from research to commercialization: “There is evolution from being a scientist or researcher to being an entrepreneur or CEO. And that’s knowing to let go of something amazing in service of commercialization.”
The key insight? “You don’t actually want to commercialize a swiss army knife if you can help it. Ideally, you want to commercialize one of the things in the swiss army knife to really solve a problem that your customer really wants.” This focus on solving one problem exceptionally well, rather than multiple problems adequately, has become central to Celadyne’s strategy as they work toward their vision of transforming the hydrogen fuel cell industry.
Actionable
Takeaways
Focus on Critical Features:
Identify and prioritize the most important features of your technology that directly address customer pain points. This can simplify development and accelerate commercialization.
Adapt and Innovate Under Constraints:
Use constraints, such as limited resources during a crisis, to drive innovation and refine your approach. This can lead to more efficient solutions and faster progress.
Leverage High-Touch Marketing:
In industries with a limited number of large customers, focus on high-touch marketing strategies that build strong relationships with key decision-makers.
Understand Government Needs:
When pursuing government contracts, invest time in understanding their specific requirements and use empathy to address their unique challenges.
Discipline in Fundraising:
Approach fundraising with discipline, dedicating specific time each day to reach out to potential investors. Ensure you have a clear plan for how the funds will be used to achieve specific goals.
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