4 Themes for 2024, 5 Themes for 2025
In the end of 2024, we participated in the ABPDU Next Gen Tech Expo, and for our presentation we decided to put together our thoughts on overarching themes for next generation technology scalers in 2024, and themes to look out for in 2025.
We adapted it here in blog format for the rest of our community to peruse. This window of time we find ourselves in is especially critical for climate solutions, and our dream is that all the entrepreneurs and start up supporters in our network scale their vision and bring bold ideas into reality this year and for years to come. We hope these thoughts from our time spent immersed in the innovation ecosystem will help guide you to success.
2024 In Review
Theme #1 - Tools for the Trade
In March 2024 we collaborated with BioP2P to release a webinar called CMO NO OR GO. We explored the question of whether or not to work with a CMO, one we have helped many of our clients answer, and one that has serious implications for determining a startup's success in scaling their technology.
Platforms like BioP2P help us realize that there are a tremendous amount of assets out there being significantly underutilized for a variety of reasons
The Evolving CMO Landscape
What was once invisible is becoming much more clearly defined and accessible, thanks to tools like BioP2P, Synonym’s Capacitor, etc. Now that more of this information has become transparent, government investment is catalyzing the missing sizes, locations and domestic capacity – for both general needs, and specific geographic interests.
Many sites have CMO they would like to monetize better, including universities and groups who have built their own pilot / demo infrastructure with lower utilization factors. These may be lacking in full equipment set or supporting functionalities but are part of the picture nonetheless and should not be disregarded depending on your needs. We have observed that many small and early-stage companies seeking small to mid-size facilities and could be paired with unconventional partners. Next Rung believes the existing assets and users could be broadly and impactfully rationalized. Ways we could see this playing out are upgrading sites to serve demand, better batches of users and CMOs, and better user preparation.
In terms of user preparation, we always recommend clear chartering and goals setting in order to clarify objectives early on. These steps are critical for successful implementation. Secondly, it is important to consider your design process not just for building, but for CMO outreach as well. Once you have a clear roadmap, and a clear understanding of what you are trying to achieve, this provides a helpful for context for decision making. These will rarely be black or white decisions, and all stakeholders will have interest or guidance. In the end, an objective, quantified framework is required to balance all enterprise considerations.
Theme #2 – Government Support
As private funding got off to a sluggish start, and essentially plateaued last year, we found that government funding stepped in where private funding lapsed.
We saw the Department of Defense in particular make a significant investment into U.S. Supply Chains through their Distributed Bioindustrial Manufacturing Program (DBIMP). Players like BioMADE made moves to expand the Bioindustrial Manufacturing Infrastructure Network, and continue to have project calls for projects in that vein. Innovation and Research & Development arms of government agencies such as AFWERX and ARPA-E continue to be a source of funding for sustainable technologies as well.
Theme #3 – Capital Discipline
Measure thrice, cut once.
In 2024 we adopted the phrase “Scaling Healthy” to describe our approach to scaling technologies. In our role as engineering services provider, we have amassed data from the economics of hundreds of industry partners and projects. With this data, we can provide a breakdown of cost and timeframes that all companies face as they commercialize across all their programs. We like to share this data to start up founders, technical teams and funders alike to illustrate the wide range of outcomes that companies face in terms of timing and budget.
At Next Rung, we believe that technical tools such as a roadmap, a project charter or a Technoeconomic Assessment also function as organizational tools. It is critical that key stakeholders can access an objective source of truth, so that teams can stay aligned throughout the whole journey of scaling (which as our data shows, can take years from lab scale to commercial scale!)
Theme #4 – Ecosystem Support
It takes a village to scale a startup
We approach our work with a genuine spirit of collaboration and optimism for the climate tech industry. This is why we give freely of our insight and expertise to community partners and startup cohorts whenever possible. In 2024, we led a TEA Bootcamp for DAC Startups in the CleanTech Open program, we sponsored the Harvard Business School Climate Summit, we led roundtable discussions at Future Food Tech and other conferences, and we conducted many roadmapping workshops such as with the Seoul Business Agency x Cambridge Innovation Center “International Soft Landing Program” for Korean biotech startups approaching the US Market. Plus supporting many platform facilities along the way.
A certain amount of competition is healthy for any industry, but we believe we go farther with collaboration. It takes a village to scale a startup, and we all need to do our part to support the ecosystem as it matures.
Looking ahead to 2025
As we settle into this new year, the second half of this decade, we highlight five themes to consider for your work in 2025.
Theme #1 – The Bio Baton
Even through a change in administration, the macro trends still support federal government’s investment into biomanufacturing. Sustainable technology is the future, and our nation’s technology leadership is more important than ever. We have particularly seen the onshoring of manufacturing to be a popular, bipartisan initiative that aligns with our industry’s needs. Not to mention the creation of good manufacturing jobs, which is always important for a healthy economy.
Theme #2 – Avoid Grant Chasing
Although we did highlight the importance of government and grant funds in our 2024 review, we do not advise to change your roadmap in order to hit a grant deadline. Roadmapping and a solid Technoeconomic Assessment are critical for appropriate project sizing and definition. Any big decisions should be built off your company roadmap. Ask yourselves “Would we do this if there was no federal funding?”
Theme #3 – Ready Aim Fire
Charter, charter, charter!
Robust project development and risk management programs will be especially critical this year as we approach an uncertain funding environment. Treat risk as a tool, not just something to avoid. A healthy risk assessment program is required for managing decisions.
Theme #4 – Execution Squeeze
We predict that execution capacity will be very tight this year. Technical resources are highly utilized, and supply chain pipelines are filling. This means that stage-gated project execution is more important than ever. Fully integrated project schedules highlight opportunities for faster & cost-effective project delivery.
Theme #5 – Ferment the Future
On the flip side, we do believe that fermentation capacity will start to ease this year. This means we may be approaching a buyer’s market for CMO selection. Thus, treat CMO outreach like you would any other procurement activity! Competitive bidding is the greatest tool for effective negotiation.
How is your roadmap looking for this year? If you have questions about any of the concepts we mentioned in this post, don’t hesitate to reach out. We would love to hear about what you are scaling!