30 Million Euros for Innovative Electric Drive: How Deepdrive Evolved from a University Project into One of DACH's Hottest Hardware Startups

About this episode

Felix Pörnbacher has a mission with DeepDrive: to develop the most efficient electric motor for cars and secure the first series production contract. After a successful Series A of 15 million euros in 2023, the company has now completed an impressive Series B of 30 million euros. This funding enables DeepDrive to advance development and conduct crucial pilot projects with automotive manufacturers.

From University Project to Hardware Startup

DeepDrive's story exemplifies how a university idea can evolve into a technology-driven company. Across 2,000 square meters of production space, the team is working on drive technology that has the potential to revolutionize the automotive industry. However, the path there is complex and full of challenges.

OEM Acquisition: The Key to Success

For hardware startups like DeepDrive, collaboration with major automotive manufacturers (OEMs) is crucial. Felix Pörnbacher emphasizes the importance of strategic acquisition and management of co-development and proof of concept projects. These partnerships are not only important for technology validation but also for the path to the first series production contract.

The challenge lies in convincing OEMs of the innovative drive technology while simultaneously meeting their specific requirements. Proper timing plays a decisive role here – the technology must be mature enough to convince, yet flexible enough to allow for adaptations.

The A-Player Engineering Team: Talent Meets Innovation

A central success factor for DeepDrive is building and leading a multidisciplinary engineering team. Felix emphasizes that finding the right talent isn't enough – the key is creating an environment that fosters their creativity and innovative spirit.

Hiring A-player engineers in a competitive market requires more than just attractive salaries. It's about conveying a vision and inspiring experts for a project that could shape the future of mobility.

DeepTech Fundraising: Unique Characteristics and Challenges

Fundraising for DeepTech startups differs significantly from that for software companies. With over 50 million euros in raised capital, DeepDrive has proven that hardware-intensive innovations can also convince investors. Felix emphasizes the importance of a clear and convincing presentation of the technology.

Investors must understand what degree of innovation is necessary to survive as a DeepTech startup. The longer development cycles and higher capital requirements demand a different understanding of risk and timeframes.

Patent Protection as Strategic Asset

In DeepDrive's technology-driven world, patent protection plays a central role. The importance of patents in building a technology-driven company cannot be underestimated – they not only create defensibility but also negotiating power with potential partners and competitors.

Resource Allocation in Hardware Development

As a hardware startup, DeepDrive faces the constant challenge of optimal resource allocation. Balancing research and development, production, and market development requires strategic thinking and precise planning. Every decision has longer-term implications than with software startups.

Looking Forward

With the successful Series B, DeepDrive is well-positioned to achieve the next milestone: the first series production contract. The combination of innovative technology, a strong team, and sufficient funding creates the prerequisites for the next growth phase.

DeepDrive's story shows that hardware startups can emerge from Germany that are internationally competitive. With the right mix of technical innovation, strategic partnerships, and solid financing, even the most complex technical challenges can be mastered.