MRL (Manufacturing Readiness Level)

The Manufacturing Readiness Level (MRL) is a 1-to-10 scale measuring the maturity of manufacturing processes for a technology or product, from theoretical process feasibility (MRL 1) to full-rate serial production with continuous improvement (MRL 10). Developed by the US Department of Defense and adopted in aerospace, defence and space sectors, it is used alongside the TRL (Technology Readiness Level) to assess overall technology maturity. In technology asset valuation, MRL directly conditions the specific risk premium and maturity discount applied in the valuation model — see our dedicated publication.

‍

Example: a Swiss additive manufacturing startup reaches MRL 5 (validated industrial pilot in laboratory) for its metal sintering technology. For its fundraising, Hectelion builds the valuation integrating the projected MRL trajectory: MRL 5 to MRL 7 (pilot production) in 18 months, MRL 9 (serial production) in 36 months. Each MRL level achieved reduces the discount rate by 3–5%, generating measurable mechanical value creation as manufacturing risk is progressively derisked.

‍

Hectelion integrates MRL as a key parameter in manufacturing technology valuations, combining it with TRL and adjusted WACC to produce robust valuations for deep tech clients.