According to CB Insights, 42% of startups fail because there’s no market need for what they built. That means they spent time and money proving the wrong concept. It is not easy to digest, isn’t it?

When building new technology, the early stages — from initial research to a proof-of-concept — are often laser-focused on making it work. Teams dive into experiments, simulations, and lab tests, racing to validate the core functionalities of their innovation. But here’s what many forget: Technical validation alone is not enough.

If you are working in the deep tech sector, it’s no surprise for you to hear that most of the ideas fail. Many technically sound projects still go wrong. Not because the tech didn’t work, but because… nobody wanted it. Have you stopped thinking about why? And what’s more important, is there anything we can do to amend it? Test and try, test and try is the most (even if we fail) powerful mindset we can have, but making the right decisions from the beginning will make your path way easier. 

In the following paragraphs, we will help you define one of the key stones you need to send when working on your technology development, and we’ll give you tips for success during your TRL 1-4 process. 

What Is the Proof-of-Concept (PoC) Phase?

The Proof-of-Concept phase is an early step in technology development where the goal is to demonstrate that your idea is technically feasible. You’re not building the final product, you’re testing whether the core concept can work in practice.

A proof of concept (POC) is a demonstration of a product in which work is focused on determining whether an idea can be turned into a reality. Rather than focusing on building or developing the idea, it tests whether the idea is feasible and viable. In addition, it enables those involved in the proof-of-concept exercise to explore its financial potential (Techtarget)

In terms of Technology Readiness Levels (TRLs), this phase usually covers TRL 3 to TRL 4:

• TRL 3: Experimental proof of concept
• TRL 4: Technology validated in the lab

It typically involves lab experiments, simulations, or small-scale prototypes. The main focus is reducing technical uncertainty and deciding whether further investment in development makes sense.

The crucial step you’re probably missing in your technology during TRL 1-4

At TRL 1–4, technologies are often in the ideation, modeling, or lab-testing phase. The focus tends to be on feasibility: Can we build it?

We know that a POC’s goal is not to seek market demand for the concept or choose the best way to produce it, but at Techfinders, we believe we never should forget the more important question: Should we build it? 

That’s where early market exploration comes in. It’s the crucial, often skipped step that could make or break your technology.

The hidden risk: building a brilliant solution to the wrong problem

Even the most promising innovation can fall flat if it doesn’t solve a real-world problem. And you won’t know if it does unless you step outside the lab. That’s why structured market exploration through interviews should be a core activity during the proof-of-concept phase — not something reserved for later.

At this stage, your tech is still flexible. Your assumptions are still testable. Your investment is still relatively low. This is the perfect time to:

• Validate whether the problem you’re solving is actually painful — and for whom.
• Understand the broader context: existing workflows, adoption barriers, and unmet needs.

Gather insights that can directly shape how your technology evolves.

Proof of Concept ≠ Proof of Relevance

A working prototype doesn’t automatically mean your technology is viable — or valuable. Without early feedback from the market, your proof of concept risks becoming just a technical achievement, not a commercial stepping stone.

So if you’re knee-deep in lab tests and simulations, ask yourself:
Have we spoken to anyone outside the building?
Have we tested our assumptions about the real-world problem?
Do we know who actually needs what we’re building — and why?

If not, you’re missing something important.

Build with the market in mind

The proof-of-concept phase is more than a technical milestone — it’s a critical moment to anchor your innovation in real-world needs. While it’s tempting to stay focused on getting the tech to work, ignoring the market at this stage is a costly mistake.

By combining technical validation with structured interviews and early market exploration, you set the foundation not just for a working prototype — but for a relevant, needed, and adoptable solution.

So before moving to the next TRL level, take the time to listen.
The future of your innovation might just depend on the conversations you have today.

What Early Market Exploration Looks Like

The proof-of-concept phase is more than a technical milestone — it’s a critical moment to anchor your innovation in real-world needs. While it’s tempting to stay focused on getting the tech to work, ignoring the market at this stage is a costly mistake.

At the PoC stage, you don’t need to test your full product. But you do need to test your assumptions. Here’s how to do that effectively:

1. Map key stakeholders

List who would be involved in or affected by your solution:

• End users
  
• Buyers or procurement leads
  
• Technical evaluators
• Business decision-makers

2. Run structured interviews

Set up conversations focused on listening, not selling. Explore:

• Their current processes
  
• Pain points and inefficiencies
  
• Existing workarounds
  
• Budget constraints and priorities
  
• Openness to new tech

3. Validate the problem, not the solution

You’re not asking “Would you buy this?” You’re asking:

• Is this problem worth solving?
• How urgent is it?
• What are you doing about it now?

4. Things you should not do during your Proof of Concept stage

If you’re doing any of the following, you might be missing the crucial step:

• You’ve only spoken to one or two “friendly” stakeholders.
  

• You’re assuming market fit based on similar tech.
  

• You’re building the PoC before confirming who your user really is.
  

• You don’t know what your target user would replace to adopt your solution.

Once you do all this, congratulations! It’s just the beginning of your technology market validation journey. 

This exercise is part of our broader Technology Market Validation Guide, where you can explore how to validate your technology from TRL 1 to TRL 9 with confidence.

Your PoC should prove more than just technical feasibility. It should prove that you’re solving the right problem for the right people.

And that starts with early market exploration before you build.

ABOUT THE AUTHOR

Andrea Puentes Viana

Marketing Specialist

Andrea  is a marketing specialist with a passion for innovation and technology adoption. She focuses on helping businesses effectively communicate their value propositions and reach the right audience through strategic marketing initiatives.