The harsh reality of the smart grid sector is that making an actual sale of networking technology, analytics tools or devices to utilities — not a pilot trial — is hard and takes a really long time. Companies that are lucky enough to test out their tech with utilities in trials aren’t guaranteed to get a commercial deal, despite the time and money invested.
That’s one of the reasons why some smart grid startups struggle and are sold off for smaller amounts than they or their investors had originally hoped, are forced to dramatically downsize, or eventually fold. There’s a chasm between when a startup launches and raises venture funding, and when a company reaches velocity with utility sales. That Valley of Death can take years of long utility sales cycles to cross, and many startups don’t make it through.
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