TRL (Technology Readiness Level)

The Technology Readiness Level (TRL) is a 1-to-9 scale measuring technology maturity from observed basic principles (TRL 1) to fully operational and proven technology in the real environment (TRL 9). Developed by NASA and adopted by the EU, ESA and US DoD, it is used in deep tech, aerospace, defence and medical sectors. In technology asset valuation, TRL directly conditions the SCRP and discount rate — lower TRL means higher risk and larger maturity discount. See our dedicated article.

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Example: a Swiss medtech startup progresses from TRL 4 (laboratory validation) to TRL 7 (prototype validated in real operational environment) in 18 months. This progression reduces the discount rate from 18% to 13% — a 5-point decrease that mechanically increases the startup's DCF value by 30–40% at constant projected cash flows. The TRL becomes a quantifiable value creation lever, modelled in the valuation trajectory presented to investors at each fundraising stage.

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Hectelion integrates TRL as a risk parameter in every deep tech and startup technology valuation, coordinating with R&D teams to accurately locate assets on the TRL scale.