The Technology Readiness Revolution: Why Deep-Tech Needs TRL

In the world of high-tech innovations, every decision can cost millions of dollars. Technology Readiness Level (TRL) is not just an assessment system, but a fundamental risk management tool that determines the fate of deep-tech projects. Developed by NASA in the 1970s, this methodology has evolved into a global standard, used everywhere from the European Space Agency to China’s national technology roadmaps.

TRL represents a nine-level scale that evaluates technology maturity from basic scientific principles to full-scale commercial products. For deep-tech startups, understanding TRL becomes a matter of survival—75% of technology startups fail in their first 3-5 years precisely due to incorrect assessment of their solution readiness.

Why TRL is Critical for the Deep-Tech Industry

Deep-tech projects differ from conventional startups through extended development cycles, high risks, and significant capital requirements. Unlike software that can be developed in months, deep-tech solutions often require years of research and millions in investment before achieving commercial readiness.

The statistics speak for themselves: deep-tech startups in Europe are valued at $711 billion, but only a small fraction successfully crosses the “valley of death” between TRL 4 and TRL 7. This is where proper TRL assessment becomes a decisive factor for attracting investment and development planning.

Technology Readiness Level: Scientific Foundations and Methodology

Historical Development of the TRL Concept

The TRL concept was first developed by NASA in 1974 by researcher Stan Sadin for assessing space technology readiness. The original system included 7 levels, but by 1989 a nine-level scale was formalized, which became the international standard.

The evolution of TRL reflects the need for a unified language for assessing technological maturity. In 2013, the International Organization for Standardization (ISO) canonized TRL in standard ISO 16290:2013. The European Commission implemented TRL in the Horizon 2020 program in 2014, while China has developed its own adaptation through national technology roadmaps and the Ministry of Science and Technology (MOST) guidelines.

Scientific Methodology of TRL Assessment

TRL assessment is based on evidence and objective criteria. Each level is characterized by specific requirements for documentation, testing, and validation. The principle of conservatism suggests that in case of uncertainty, a lower TRL should be assigned.

Key principles of TRL assessment:

• Gradualism: technology must sequentially pass through all previous levels
• Contextuality: TRL is valid only for a specific operational environment
• Evidence-based: each level requires documentary confirmation

Nine TRL Levels: Detailed Analysis of Technological Evolution

TRL 1: Basic Principles Observed and Documented

TRL 1 represents the initial stage of scientific research, where fundamental principles are translated into applied research and development. At this level, scientific knowledge is generated to understand basic properties of technological concepts.

TRL 1 characteristics:

• Published peer-reviewed research confirming basic principles
• Defined theoretical foundations of future technology
• Formulated potential applications, but without detailed analysis

Example: Research on new materials for energy storage at the level of studying their molecular properties and theoretical potential.

TRL 2: Technology Concept and Application Formulated

TRL 2 is characterized by formulating practical applications based on observed principles. Technology remains speculative since there is no experimental proof of concept.

Key TRL 2 criteria:

• Inventive activity based on basic principles
• Analytical research without detailed experimental confirmation
• Algorithm definition and mathematical formulations for software solutions

China’s National Technology Roadmaps require technical specifications for product development and efficiency justification of concepts at this level.

TRL 3: Experimental Proof-of-Concept

TRL 3 marks the transition to active research and proof-of-concept demonstrations. Analytical and laboratory studies are conducted for physical validation of analytical predictions.

TRL 3 achievement criteria:

• Creation of experimental model or concept prototype
• Laboratory experiments confirming key characteristics
• Modeling and simulation for efficiency prediction validation

For deep-tech projects, TRL 3 often becomes the first point for attracting research grants and initial investments.

TRL 4: Technology Validation in Laboratory Environment

TRL 4 represents integration of basic components to demonstrate their joint operation. Technology is tested in controlled laboratory conditions using “ad hoc” equipment.

TRL 4 characteristics:

• Detailed mockup for operability demonstration
• Individual component testing in laboratory environment
• First performance measurements and key parameters

Statistics show that startups at TRL 3-4 level begin demonstrating technological feasibility but still require significant development.

TRL 5: Technology Validation in Relevant Environment

TRL 5 requires testing basic technological components in an environment closely resembling real conditions. This is a critical point for many deep-tech projects, as here technology first encounters real operational conditions.

TRL 5 requirements:

• Integrated laboratory components in realistic environment
• Breadboard technology with increased reliability
• Simulations in conditions maximally close to real ones

China’s National Natural Science Foundation (NSFC) focuses on projects with TRL 5-9, as technologies at this level are ready for commercialization and scaling.

TRL 6: System Demonstration in Relevant Environment

TRL 6 is characterized by a fully functional prototype or representative model. Technology is demonstrated in a configuration close to final in simulated operational environment.

Key TRL 6 achievements:

• Full-scale prototype in realistic conditions
• MVP (Minimum Viable Product) for software solutions
• Functional demonstration of all key capabilities

Investors consider TRL 6-7 as critical levels for investment attraction, as technology demonstrates tangible progress toward commercialization.

TRL 7: System Prototype Demonstration in Operational Environment

TRL 7 requires demonstration of a working model in real operational environment. For space technologies, this means testing in space; for industrial solutions—in real production conditions.

TRL 7 criteria:

• Prototype at planned operational level
• Field testing in real operational conditions
• Proof of operability in target environment

The “valley of death” between TRL 4 and TRL 7 represents the greatest challenge for deep-tech startups, requiring significant investments at high risks.

TRL 8: System Complete and Qualified

TRL 8 means technology has proven its operability in final form under expected conditions. The system has passed exhaustive tests and is ready for integration into existing systems.

TRL 8 characteristics:

• “Flight qualified” status for aerospace applications
• Completed system development with strict change control
• Certification and compliance with all regulatory requirements

Venture funds are typically interested in companies with TRL 7-9, as technological risks are minimized.

TRL 9: System Proven in Operational Environment

TRL 9 represents the highest level of technological maturity—real application of technology in final form under real conditions. Technology is ready for full-scale commercial deployment.

TRL 9 criteria:

• Successful mission or commercial use
• Serial production and market presence
• Proven operational efficiency in real conditions

TRL in Deep-Tech: Critical Importance for High-Tech Innovations

Deep-Tech Specifics and TRL Role

Deep-tech enterprises are characterized by unique challenges that fundamentally differentiate them from traditional startups. MIT REAP defines deep-tech as “science-based technological solutions” associated with critical dimensions of uncertainty.

Key characteristics of deep-tech projects:

• Positioning at scientific frontier with lengthy and uncertain R&D cycles
• Creating material products, often subject to regulation
• Connection with key ecosystem stakeholders, especially universities
• Focus on solving problems of social significance

Statistical data show that deep-tech startups in Europe are more resilient to economic downturns due to unique technologies that are difficult to develop and difficult to copy.

Investment Attractiveness and TRL

TRL impact on deep-tech startup valuation is a fundamental factor in investment decisions. Equidam integrated TRL into its valuation methodology, replacing the previous stage deployment assessment system with a more granular, industry standard.

TRL affects risk assessment in the following ways:

1. Risk Assessment: Higher TRL indicates reduced technical risks, making startups more attractive to investors. A startup at TRL 6-7 level with a prototype demonstrated in relevant environment is closer to commercialization and less risky.
2. Investment Stage Alignment: TRL helps align investments with appropriate development stage. Early stages (TRL 1-4) require R&D financing, while late stages (TRL 5+) focus on scaling and commercialization.
3. Resource Allocation: TRL guides resource distribution, determining where to focus efforts. Early startups prioritize R&D, late companies focus on production and marketing.

Valley of Death and Risk Management

The “valley of death” between TRL 4 and TRL 7 represents the greatest challenge for deep-tech innovations. This period is characterized by high investment requirements at significant risks, often leading to underfunding of promising technologies.

“Valley of death” statistics:

• Universities and government funds focus on TRL 1-4
• Private sector invests in TRL 7-9
• TRL 4-7 often remain underfunded

Overcoming the “valley of death” requires collaborative efforts between academic institutions, government programs, and private investors.

TRL Assessment Methodology: Practical Guide

Principles and Approaches to TRL Assessment

Determining technology TRL requires a systematic approach and strict adherence to established criteria. The Canadian methodology offers clear principles for accurate assessment:

Fundamental principles of TRL assessment:

1. Start with general development stage: When determining TRL, it’s better to start with the general development stage of technology before assessing specific TRL.
2. Err on the side of conservatism: When uncertain about TRL, assign a lower level.
3. Understand operational environment: A key aspect of TRL is the technology’s test environment. It’s important to clearly understand real conditions and how the test environment represents them.
4. TRL is valid only for specific environment: If technology will be deployed in an environment different from the test environment, it is no longer considered fully developed.

Four-Stage TRL Grouping

The Canadian system groups nine TRL into four main stages of technological development:

1. Fundamental Research (TRL 1-2)
   • Basic research and concept formulation
   • Theoretical justification and primary analysis
2. Research and Development (TRL 3-5)
   • Proof-of-concept and laboratory validation
   • Prototyping in controlled conditions
3. Pilot and Demonstration (TRL 6-8)
   • Full-scale demonstrations in real conditions
   • System qualification and deployment preparation
4. Early Adoption (TRL 9)
   • Commercial deployment and operational use

Tools and Templates for TRL Assessment

The European Commission developed an extended TRL matrix to support applicants in correct TRL determination. The system is based on three key questions:

1. Type of solution being developed:
   • Manufactured product
   • Industrial process
   • Software
   • Medical device
   • Pharmaceutical product
2. What is missing for final innovation form: This question assesses sustainability and completeness of innovation status.
3. Level of integration and testing: Determines technology maturity based on conducted tests.

TRL Assessment Tool includes checklists for each level, helping to objectively determine current technology status.

TRL and Venture Financing: Connection with Investment Decisions

TRL Correlation with Funding Stages

Research shows that direct correlation between company TRL and funding series doesn’t exist. Advanced R&D grants allow companies to stay longer in universities, and by the time of first capital allocation they already reach high TRL levels.

Examples from practice:

• Company Varian spun out from university at TRL 6+ level
• Deep-tech startups can attract Series A already at TRL 8

Investment criteria by TRL levels:

Pre-seed and Seed (TRL 1-4):

• Research grants and government funding
• Angel investors with high risk tolerance
• Focus on R&D and proof of concept

Series A-B (TRL 5-7):

• Venture funds with deep-tech experience
• Strategic investors and corporate funds
• Transition to commercialization and scaling

Series C+ (TRL 8-9):

• Private equity and late venture rounds
• IPO preparation or strategic exit
• Focus on market expansion

Using TRL in Investment Process

TRL provides a common language for assessing technological maturity, risk management, and technology transition decisions. Grantify notes that venture funds are typically interested in TRL 7-9, where technological risks are minimized.

Key TRL advantages for investors:

1. Risk Assessment: TRL provides clear evaluation of technical risks and commercialization readiness.
2. Due Diligence: Standardized system simplifies comparison of different technological projects.
3. Milestone Planning: TRL helps determine key milestones and funding requirements for reaching next levels.
4. Portfolio Management: Investors can balance portfolio by TRL levels to optimize risk and return.

Regional Funding Features

Chinese funding programs actively use TRL criteria:

National Natural Science Foundation of China (NSFC) requires TRL 4-6 for grant applications and TRL 7-9 for project completion through its Excellent Young Scientists Fund.

China’s Ministry of Science and Technology (MOST) integrates TRL assessment into national technology roadmaps, including the Made in China 2025 strategy and Standards 2035 project.

Chinese Academy of Engineering uses TRL frameworks in evaluating green and low-carbon emerging industries and advanced manufacturing technologies.

TRL Integration with Business Readiness Level and Comprehensive Assessment

Business Readiness Level (BRL) Concept

Business Readiness Level (BRL) complements TRL by assessing commercial readiness and market maturity of deep-tech startups. While TRL determines technological readiness, BRL assesses business readiness for market launch.

BRL focuses on commercial functions:

• Development of business concept and strategy
• Team and management structure
• Competitor awareness and market positioning
• Financial aspects: capital, cash flow, scalability

Nine-level BRL scale:

• BRL 1: Hypotheses about possible business concept
• BRL 2: First possible business concept described
• BRL 3: Business model draft (excluding revenues/expenses)
• BRL 4: First version of complete business model
• BRL 5: Parts of business model tested in market
• BRL 6: Complete business model verified with customers
• BRL 7: Product/market fit and customer willingness to pay
• BRL 8: Sales show business model works
• BRL 9: Business model finalized and scaling

Parallel Development of TRL and BRL

TRL and BRL work in parallel, not sequentially. Innovation projects must develop technology and market synchronously to ensure successful commercialization.

Advantages of integrated approach:

1. Balanced Development: Prevents situations where high technological readiness combines with low market readiness.
2. Risk Mitigation: Comprehensive assessment of both technological and commercial risks.
3. Investor Communication: More complete picture for investors about project readiness for commercialization.
4. Strategic Planning: Coordinated planning of technological and business milestones.

Additional Readiness Scales

Modern assessment systems include multiple readiness dimensions:

• Manufacturing Readiness Level (MRL): Assesses production maturity and serial production capability.
• Commercial Readiness Level (CRL): Focuses on commercial readiness and market potential.
• Legal Readiness Level (LRL): Assesses legal readiness and regulatory compliance.
• Social Readiness Level (SRL): Measures social readiness and societal acceptance.

International Standards and TRL Regulation

NASA: Founder of Methodology

NASA remains the authoritative source of TRL methodology with detailed definitions for hardware and software technologies. NASA Technology Readiness Assessment Best Practices Guide provides comprehensive recommendations for conducting TRL assessments.

Key NASA documents:

• NPR 7123.1: Official TRL requirements
• NASA/SP-2007-6105: Detailed TRL definitions
• Technology Readiness Assessment Best Practices Guide: Practical recommendations

NASA requires TRL 6 or higher for technology integration into flight systems, emphasizing the critical importance of this level.

European Standards

European Space Agency (ESA) uses ISO 16290 TRL Scale, ensuring uniformity of definitions and interpretations. ESA works with various TRL levels in its research programs.

European Commission implemented TRL in Horizon 2020 and Horizon Europe programs:

• Research & Innovation Actions (RIA): TRL 4-6, 100% funding
• Innovation Actions (IA): TRL 6-8, 70% funding

TRL became a key indicator for project positioning and determining participation requirements in European programs.

Chinese TRL Standards and Implementation

China has developed national approaches based on international methodology through several key initiatives:

China’s National Natural Science Foundation (NSFC) incorporates TRL assessment in its funding programs, particularly the Excellent Young Scientists Fund (Overseas) which requires clear TRL progression from application to completion.

Ministry of Science and Technology (MOST) integrates TRL frameworks into:

• Made in China 2025 technology roadmaps
• Standards 2035 project for technological leadership
• National Key R&D Program assessments
• High-tech industrial park project evaluations

Chinese Academy of Engineering has developed specialized TRL applications for:

• Green and low-carbon emerging industries maturity evaluation
• Advanced manufacturing technologies assessment
• Energy-saving and new energy vehicle technology roadmaps
• Aerospace and marine engineering projects

China’s approach to TRL emphasizes integration with national strategic priorities and global competitiveness goals, particularly in emerging technologies like AI, quantum computing, and advanced materials.

ISO and International Standardization

ISO 16290:2013 canonized TRL as an international standard, ensuring global unification of approaches to technological readiness assessment.

The standard provides:

• Universal definitions of TRL levels
• Methodological recommendations for assessment
• Requirements for documentation and validation

Wide adoption of ISO 16290 by government agencies and corporations ensured global consistency in TRL methodology application.

Practical Examples and TRL Application Cases

Aerospace Industry

TRL11, Inc.—a space company that closed a pre-seed round of $3M+ in 2023. The company develops full-featured video solutions for aerospace applications and launched first prototypes into orbit less than a year after founding.

The name “TRL11” symbolically means “first step to the next chapter” of space exploration, demonstrating the importance of TRL methodology in strategic company positioning.

Manufacturing Technologies

Manufacturing USA presented seven startups covering various TRL levels of innovations:

• Spark Photonics (TRL 2-4): Development of integrated photonic semiconductor circuits for chip foundry production.
• Endeavor Composites (TRL 3.5-6): Development of methods for recycling excess carbon fiber for dramatic cost reduction.
• Intabio/SCIEX (TRL 5): Development of biotherapeutic analysis testing, reducing testing time by 30 times and cost from $23,000 to $65 per sample.
• ThinkIQ/Atollogy (TRL 6-7): Information modeling platform for manufacturers, enabling easy capture and visualization of production line data.

Energy Technologies

Newcastle University created an integrated system for light energy harvesting and storage with record performance:

• Photocharging voltage of 0.9V and overall charging efficiency of 18%
• Image recognition accuracy of 93% at energy consumption of 0.8 mJ per inference
• 3.5x superior performance compared to commercial silicon modules

Deep-Tech Valuation

Equidam integrated TRL into valuation platform for more accurate deep-tech startup assessment. Traditional valuation methods often don’t suit deep-tech due to:

• Extended negative cash flows
• Lack of comparable analogs
• High market uncertainty

TRL-based valuation considers technological maturity as a key factor for risk reduction and investment attractiveness enhancement.

Challenges and Limitations of TRL Methodology

Adaptation to Software Technologies

TRL was originally developed for hardware technologies and isn’t always correctly applicable to software products. Software development is characterized by:

• Fast iteration cycles
• Agile development methodology
• Different principles of testing and validation

Machine Learning TRL (MLTRL) was developed to adapt methodology to machine learning systems, including:

• Specific requirements for data and algorithms
• Ethical considerations and bias control
• ML model validation features

Sectoral Differences

Pharmaceutical industry adapted TRL for drug development process:

• TRL 1-4: Basic research and preclinical studies
• TRL 5: Investigational new drug application
• TRL 6-8: Clinical trials
• TRL 9: Product launch

BIRAC (India) developed detailed TRL definitions for various thematic areas:

• Healthcare (drugs, biosimilars, regenerative medicine)
• Agriculture
• Industrial biotechnology
• Bioinformatics and software

Assessment Subjectivity

TRL is self-declared and can vary between sectors. Lack of independent validation can lead to inflated assessments and inaccurate technology readiness determination.

ScoutinScience uses deep neural networks for objective TRL assessment based on scientific publications, but this approach still requires expert verification.

Future of TRL in the Deep-Tech Era

Integration with Artificial Intelligence

AI-enhanced TRL assessment becomes a promising direction for objectifying assessments. Machine learning can analyze:

• Technical documents and patents
• Testing results and validation
• Market indicators and commercial readiness

ScoutinScience demonstrates potential for automated TRL assessment based on scientific publication analysis.

Methodology Expansion

European Commission explores possibilities for expanding TRL with additional dimensions:

• Social Readiness Level (SRL): Social readiness and acceptance
• Organizational Readiness Level (ORL): Organizational readiness
• Legal Readiness Level (LRL): Legal readiness

Integrated approach will ensure comprehensive assessment of innovation readiness for implementation in complex sociotechnical systems.

Adaptation to New Technologies

Quantum technologies, synthetic biology, nanotechnologies require TRL methodology adaptation to specific features of these areas.

Blockchain technologies and decentralized systems also present new challenges for traditional TRL assessment.

Standardization and Harmonization

Global harmonization of TRL standards becomes critically important for international cooperation in deep-tech projects. ISO works on standard updates to account for modern technological realities.

Digitization of TRL processes will ensure automated assessment and continuous monitoring of technological readiness in real-time.

Conclusion: TRL as Strategic Tool for Deep-Tech Success

Technology Readiness Level has evolved from NASA’s space methodology to a fundamental tool for managing deep-tech innovations. In an era where technological risks are measured in billions of dollars, TRL provides critically important language for assessment, planning, and investment in high-tech solutions.

Key conclusions for deep-tech ecosystem:

For startups: TRL provides a structured approach to development planning, investment attraction, and risk management. Understanding current TRL and clear advancement plan to next levels are critically important for success.

For investors: TRL provides an objective foundation for assessing technological risks and commercialization potential. TRL integration into due diligence processes improves investment decision quality.

For policymakers: TRL helps optimize government innovation funding, ensuring support at critical stages of technological development, especially in the “valley of death” between TRL 4-7.

The future of TRL is connected with integration of additional readiness dimensions (BRL, MRL, SRL), automation of assessment processes, and adaptation to new technological domains. As technological landscapes become more complex, TRL methodology will continue to evolve, remaining an indispensable tool for navigation in the world of deep-tech innovations.

Success in deep-tech requires not only technological excellence but also strategic understanding of technology development processes. TRL provides a map of this journey—from laboratory bench to global market, from scientific discovery to commercial success. In a world where innovations define the future, TRL becomes a compass guiding deep-tech entrepreneurs to their goals.

Ready to assess your technology’s TRL and unlock deep-tech success? Contact our experts for comprehensive TRL evaluation and strategic guidance tailored to your innovation journey.