From Growing to Scaling: An Integrative Framework of Scalability in Deep Tech

Scalability is one of the most important features evaluators assess in new ventures. Yet, what it means for a venture to be scalable is still not well understood. To bring new insights, we explore scalability in the unique context of deep tech – ventures which require prolonged stakeholders’ support in technology development before they can scale. Our study identifies the dimensions of scalability for nascent ventures based on interviews with ecosystem actors from venture capitalists, incubators, accelerators, public funders, and corporate venture builders. Instead of merely being an inherent characteristic of a firm, scalability arises from evaluators’ interpretation of signals related to the ventures’ technology, business model, market, and people. While inaccurate scalability evaluations can lead to firms not getting the resources needed to scale eventually, we also show that new ventures deemed scalable can still fail to scale without proper development. Our study advances an integrative framework of scalability, clarifying the relationships between scalability as a capability, scaling as a process, and other extant concepts like growth. Apart from theoretical contributions, our study guides both decision-makers evaluating new ventures and entrepreneurs aiming to win support from crucial stakeholders.