Technology Readiness Level (TRL) Summaries

Technology Readiness Levels (TRLs) are a standardized framework originally developed by NASA to assess how mature a technology is on its journey from initial research to commercial deployment. Ranging from TRL 1 (basic scientific principles) to TRL 9 (proven commercial operation), these levels help investors and founders objectively evaluate technological progress and associated risks.

Equidam has integrated TRLs into our valuation methodology to better capture the development milestones that matter most for deep tech and hardware companies, where traditional metrics like revenue may not reflect true progress for years. For founders, accurately assessing your TRL provides crucial context for valuation—a quantum computing startup at TRL 4 (lab validation) carries very different risk and timeline expectations than one at TRL 7 (pilot deployment).

Understanding your current TRL helps set realistic investor expectations, guides strategic planning for the next development phase, and ensures your valuation reflects the true stage of technological maturity rather than just business milestones.

Software Context: You've identified the core algorithms, data structures, or computational approaches that could solve your target problem. This might involve publishing research papers, filing initial patents, or demonstrating mathematical proofs of concept. No working code exists yet.

Hardware Context: You've discovered the basic physical principles or scientific phenomena that could enable your technology. This involves laboratory research, material property studies, or theoretical modeling that shows the underlying science is sound.

Software Context: You've developed a clear technical concept for how your software solution will work, including system architecture diagrams, algorithm specifications, and data flow models. You may have written initial pseudocode or mathematical models, but no functional implementation exists.

Hardware Context: You've formulated a specific technology concept that could be practically applied, moving beyond basic research to identify potential applications. This includes conceptual designs, preliminary engineering studies, and identification of key technical challenges.

Software Context: You've built basic working code that demonstrates core functionality in a controlled environment. This might be a simple script, algorithm implementation, or minimal prototype that proves your technical approach works, even if it's not user-friendly or complete.

Hardware Context: You've conducted laboratory experiments that validate your technology concept. Key components have been tested individually to prove they work as intended, though they haven't been integrated into a complete system.

Software Context: Your software solution works reliably in laboratory conditions with clean, controlled data sets. Core features are implemented and tested, though the system may not handle real-world complexity, edge cases, or scaling requirements.

Hardware Context: You've built and tested a laboratory prototype that integrates multiple components. The system demonstrates key functionalities under controlled conditions, though it may be bulky, expensive, or require specialized expertise to operate.

Software Context: Your software works with realistic data and use cases that closely simulate target user environments. You've tested with actual data sets, integrated with relevant third-party systems, and demonstrated performance under conditions similar to deployment scenarios.

Hardware Context: You've tested your prototype in conditions that closely approximate the intended operating environment. This involves field testing, pilot installations, or demonstration in settings that represent real-world deployment challenges.

Software Context: You have a beta version that works reliably in representative user environments. Early customers or partners are testing your solution in their actual workflows, providing feedback on performance, usability, and integration requirements.

Hardware Context: You've built and demonstrated a prototype that operates successfully in its intended environment over extended periods. The system proves it can handle real-world conditions, though it may still require optimization for commercial production.

Software Context: Your software is deployed and operating in actual customer environments. You have paying pilot customers or live deployments that demonstrate the solution works in production conditions, though you may still be refining features and scalability.

Hardware Context: You've demonstrated a near-commercial prototype that operates in actual operational conditions. The system is close to final design specifications and has proven reliability and performance in real-world deployment scenarios.

Software Context: Your software platform is feature-complete, tested, and ready for full market launch. You've addressed scalability, security, and compliance requirements. The system is production-ready with documented APIs, user interfaces, and deployment procedures.

Hardware Context: Your technology is fully developed, tested, and qualified for commercial production. All design challenges have been resolved, manufacturing processes are established, and the system meets all regulatory and performance requirements.

Software Context: Your software is successfully deployed at commercial scale with multiple paying customers. The platform operates reliably in diverse production environments, generates revenue, and has proven market fit with documented customer success stories.

Hardware Context: Your technology is in full commercial production and deployment. Multiple units are operating successfully in their intended environments, proving the technology's commercial viability and reliability at scale.

Software Context: Your software solution is built using well-established technologies, frameworks, and methodologies with no novel technical development required. The technical risk is minimal—your focus is entirely on business execution, market positioning, and customer acquisition.

Hardware Context: Your product uses only existing, commercially available components and established manufacturing processes with no technological innovation required. The primary challenges are operational, marketing, and scaling rather than technological development.

When completing your Equidam assessment, consider these questions:

Remember that TRL progression isn't always linear—you may advance quickly through some levels while spending significant time on others, particularly the transition from laboratory (TRL 4) to relevant environment (TRL 5-6) validation.