The Three Gaps Between a Materials Breakthrough and a Business
A materials breakthrough must survive the journey to commercial adoption. This 2023 perspective examines the barriers investors and entrepreneurs need to understand before committing capital.
Originally published in Global Corporate Venturing (GCV)
Read Min Zhou’s original GCV article ↗
Identify the barrier before funding the solution
Early customer interest can obscure the challenges ahead. Our original analysis distinguished three gaps: production cost, the capacity needed to serve an industry, and the time required for adoption through a value chain.
Match the strategy to the gap
A better material will struggle if its economics are unaffordable. A promising supplier may need manufacturing capacity before customers can adopt. Upstream innovations can face successive qualification stages before generating revenue.
These require different responses. Cost improvements, manufacturing partnerships and engagement with the final customer can each help, depending on the barrier.
Capital must support a credible route to adoption
The investment decision should consider how the company will cross its gap and finance that journey. Scientific merit and enthusiastic early adopters are starting points; the route to a sustainable business needs its own assessment.