Guidance

Track 3: Pricing Logic

Published 2 December 2025

 FROM SERIES A TO SCALE 

PRICING LOGIC 

This pricing logic framework integrates foundational cost structures, customer insights, competitor analysis, channel partner requirements and alignment with overarching business objectives. 

While this framework is broadly applicable across deep-tech and enterprise sectors, it draws on examples and considerations relevant to complex industries like space technology, where long sales cycles, regulatory compliance and sophisticated procurement processes are common. 

By reflecting the realities of customer willingness to pay, procurement constraints, competitive positioning and partner margin expectations, this approach ensures pricing is realistic, competitive and supports scalable, repeatable revenue models. 

Crucially, it aligns with investor expectations by balancing innovation premiums with efficient capital use and go-to-market scale. 

This disciplined and market-informed pricing logic helps build investor confidence, supports sustainable business growth and prepares your company to navigate international market dynamics successfully. 

Detailed Pricing Logic Based on Strategic GTM Insights 

1. Costs 

Start with a comprehensive baseline capturing all direct and indirect expenses: R&D, compliance, export licensing, production, delivery and operational support. 

Realistically model these to establish pricing floors that sustain key growth milestones (e.g., Series B funding expectations). 

Account for economies of scale as your business transitions from one-off projects to scalable, recurring revenue models or larger programmes/infrastructure builds. 

Include planned improvements in burn multiples to signal operational efficiency to investors. 

Also consider the costs of supporting your customers. These costs will/may include implementation costs or general customer support costs. 

2. Customers 

Your pricing must reflect deep customer understanding: their willingness to pay, budget cycles and procurement complexities common in enterprise and government clients. Additionally, it should consider the extent to which alternatives are available. 

Leverage insights from pilot programs, procurement feedback (including government tenders and enterprise RFPs) and A/B pricing experiments. 

Communicate value with clarity by tying pricing to customer outcomes—for example, “Our solution reduces insurer risk by X%” or “Saves governments Y million annually.” 

Recognise that sales cycles may span 6-12 months or longer in enterprise settings; pricing should enable engagement over these extended periods without pricing yourself out of large contracts. 

3. Competitors 

Conduct thorough benchmarking against current direct competitors in your space such as other deep tech providers, legacy incumbents and new disruptors with alternative models. 

Position your pricing based on whether you offer a premium product with differentiated features or a cost-effective solution that may appeal to more price-sensitive segments. 

Understand government and large enterprise procurement frameworks and use those insights to adjust pricing structures; for instance, tender thresholds and modular pricing approaches to fit procurement norms. 

4. Channel Partners 

Include margin expectations and commercial terms expected by distribution or integration partners (e.g., primes, system integrators and marketplaces). 

Your pricing strategy must enable a profitable partner ecosystem while preserving attractive pricing for end customers. Ensure partners’ compliance capacities (export licenses, security accreditation) influence feasible pricing models, preventing bottlenecks in international sales. 

Factor partner contract requirements (MOD, ESA, prime-like structures) upfront to reduce surprises down the sales pipeline. 

5. Compatibility with Broader Business Goals 

Your pricing framework must support your broader narrative of credible, repeatable revenue streams - such as subscription models or multi-year contracts - which investors look for to give certainty of income, that can underpin further investments. 

Be clear about your market positioning on the risk/reward spectrum: is your approach premium and innovation-focused or designed for rapid market penetration through discounts? 

Regularly monitor financial health indicators like customer acquisition cost (CAC), lifetime value (LTV) and burn multiples; adjust pricing dynamically to ensure investor confidence. 

Account for international market dynamics and export readiness, incorporating compliance and local market conditions into tailored pricing adaptation.

This information is a non-exhaustive summary of some of the factors which may be relevant to seeking investment in the space sector. Persons should take independent legal and professional advice before seeking any such investment.