TRL and MRL in the WACC

Integrating TRL (Technology Readiness Level) and MRL (Manufacturing Readiness Level) into the WACC is a methodology that quantifies the impact of technological and manufacturing maturity levels on the discount rate applied to deep tech innovations and startups. Low TRL or MRL implies a high SCRP in the WACC; as maturity progresses, the SCRP decreases mechanically, reducing the WACC and increasing the present value of projected cash flows. This methodology formalises and objectivises value creation through technology risk reduction. See our dedicated publication.

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Example: a Swiss additive manufacturing startup is valued at TRL 5/MRL 4 with a WACC of 18.0% (SCRP 5.0%). The technology roadmap targets TRL 7/MRL 6 in 18 months (target WACC 13.0%) and TRL 9/MRL 9 in 36 months (WACC 9.5%). Each milestone generates CHF 2–4 million of additional present value — an objective, defensible value creation trajectory for successive fundraising presentations.

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Hectelion models TRL and MRL impacts on WACC in every deep tech and manufacturing startup valuation, enabling founders to present a rigorous value trajectory to institutional investors.