Arkady Kulik — Bridging Science & Entrepreneurship | Episode 193

Readiness Levels

Arkady Kulik elaborates on the Technology Readiness Level (TRL) scale, originally developed by NASA, to assess the maturity of technologies. He explains that TRL stages range from theoretical phases to commercialization, with the sweet spot for investment being the prototype and validation phase. Kulik emphasizes that commercialization is crucial for scientific discoveries to be valuable:

Deep tech discoveries aren't valuable unless you figure out a way to commercialize them and let regular people use them.

--- Jim O'Shaughnessy

Different technologies mature at different rates, making it challenging to predict the right time for investment 1 2.

   

Deal Breakers

Kulik outlines the deal breakers that rpv considers when evaluating deep tech investments. These include the inability to protect intellectual property, difficulties in obtaining licenses, and too small of a market or exit potential. He also highlights the importance of the founding team's reputation and expertise:

If there is poor reputation or these people have questionable background, we probably would not take this company into consideration.

--- Arkady Kulik

The initial filtering process eliminates about 80% of companies, ensuring only those with significant scientific breakthroughs proceed 3 4.

   

Due Diligence

Scientific due diligence at rpv involves a thorough review of a company's technology and scientific claims. Kulik explains that this process includes internal reviews, peer evaluations, and external scientific opinions to ensure the validity of the technology. He stresses the importance of scientific expertise in venture capital to avoid investing in fraudulent companies:

We bring scientific expertise to the world of venture capital.

--- Arkady Kulik

Less than 5% of companies make it through this rigorous due diligence process, highlighting the stringent standards rpv maintains 5 6.