Joshua Denne, Head of Product at APC, and Mark Cracknell, Programme Director for Zenzic, highlight ten key lessons from a decade of mobility innovation, focusing on the need for tailored support, early customer engagement, and a revised approach to Minimum Viable Products in hardware.
After a decade of supporting mobility innovation, the Advanced Propulsion Centre UK (APC) and Zenzic have worked with hundreds of start-ups and SMEs, helping them take their innovation from concept to commercialisation. We’ve seen the breakthroughs and the breakdowns – the big deals and the cautionary tales. Here, Joshua Denne, Head of Product at APC, and Mark Cracknell, Programme Director for Zenzic, reflect on the top ten lessons that separate the companies that accelerate from those that stall.
The mobility sector is brutal. We are heavy on hardware, and unlike software, you can’t pivot on a whim. The product lifecycle is longer, the capital burn is higher, the asset requirement is intense, and proving technical viability is only half the battle. Commercial traction is what defines winners.
We launched the next evolution of our mobility start-up accelerator ‘Mobilise’ in January 2025. These ten hard-won lessons from the past decade have shaped how we hope to support the next generation of mobility start-ups.
1. The right support at the right stage
The UK’s mobility ecosystem is rich in its diversity: we have global corporate OEMs and suppliers, established supply businesses, small-and-steady SMEs, high-ambition scaleups, and bleeding-edge start-ups. Taking a single approach to supporting each of these segments does not deliver the best outcomes. A start-up taking its core technology to Minimum Viable Product (MVP) needs fundamentally different help than one scaling manufacturing capacity. A global OEM does not need the same intervention as an established UK-based supplier. Our focus in this article is on start-ups and the programmes we have developed to accelerate them.
For start-ups at the seed stage, funding for technology validation is immediately critical and an entrepreneur’s first priority. However, due to long product introduction periods, the high cost of development, and the challenging commercial environment, commercialisation expertise, IP strategy, and Investment readiness also need to be an early priority – support with the target market, and help preparing for relevant early-adopter market requirements are absolutely critical.
Mismatched support can leave a lot of value on the table. We’ve seen companies attempt to deliver large application readiness programmes before they’ve validated their technology, only to burn through cash with limited traction. Likewise, we have seen many start-ups waste time and resources shooting for an unrealistic market segment. The right support at the right stage accelerates, but the wrong support at the wrong time can be a distraction.
Mobilise is a structured early-stage accelerator programme that supports ambitious start-ups, university spinouts, or pivoting SMEs that are developing innovative mobility-related early-stage, zero-emission or Connected and Automated Mobility (CAM) technologies, products, services, or solutions to accelerate the transition to a safer, smarter, more sustainable future.
2. Early adopters beat ‘build it and they will come’
Proof of traction trumps proof of concept. It’s easy to fall into the trap of thinking that superior tech will automatically attract buyers. It won’t. Companies that spend years perfecting their product, without bringing early adopters on board, often fail. Likewise, focusing on large multinational customers as innovators or early adopters is a fatal error. We can think of just a handful of companies that have converted commercial deals with global multinationals as their first or early adopters.
The winners engage potential customers early. They focus on initial customer segments that can allow market entry at pace, ideally at a premium, even if the total market size is smaller. In an ideal world, they go beyond letters of intent (LOIs) to secure paid pilots and joint development agreements before scaling. These commitments provide validation and create customer pull, making the eventual commercial launch far less risky.
We’ve seen companies with inferior technology win market share because they had early adopter buy-in. Meanwhile, technically superior start-ups struggle because they waited for the ‘perfect product.’
3. Redefining MVP in hardware: Segment, model, product
The classic concept of a Minimum Viable Product (MVP) doesn’t always translate perfectly to hardware or deep tech. You can’t really ship a half-baked prototype in a highly regulated market. Instead, we think in terms of:
Minimum Viable Segment: Proving the value in a specific niche (e.g., low-volume EVs before targeting mainstream OEMs), which is big enough to make sense for initial product development, and small enough and innovative enough to be your first customer.
Minimum Viable Business Model: Demonstrating through a focused go-to-market strategy, developing the minimum viable asset set to service your identified first customer segment.
Minimum Viable Product: A product with just enough functionality to attract customer traction (including regulatory requirements) of this first segment.
For mobility start-ups, an MVP ≠ prototype. It’s about proving an initial business model, of which your product is just one part.
4. Customer segmentation beats market segmentation
It’s tempting to segment the market by industry verticals – electric vehicles, automated systems, energy, etc. However, customer segmentation is a much more powerful tool.
Understanding who your target customers are, what their specific pain points are, and how they make purchasing decisions is far more valuable than broad market segmentation. Focus on solving problems for a defined group, and you can unlock tailored marketing strategies, product features, and sales approaches that resonate with them directly.
We’ve seen companies waste valuable time and resources targeting the wrong customer segment. The secret lies in identifying who truly needs your solution and aligning your strategy with their needs.
5. Focus beats spread betting
Mobility start-ups often fall into the trap of trying to address every possible use case, every market, and every customer. The temptation to spread your bets is natural, especially when you’re trying to secure investors and prove product-market fit.
However, companies that scale successfully usually have a laser focus – whether it’s on a specific vehicle type, a technology, or a customer segment. Successful start-ups know where to concentrate their efforts. They take measured risks and refuse to get distracted by every opportunity that presents itself. They fail their business model fast, if an element of their delivery isn’t going to work, or their hypothesis about a particular customer segment turns out to be wrong, they pivot to a new, focused plan.
6. Listen first, sell later
Listening is the foundation of successful partnerships and product development. Many mobility start-ups make the mistake of pitching their product before truly understanding the customer problem. When you lead with your solution, you risk missing the point.
Companies should instead develop their “customer discovery” muscles. Only by actively listening to customers’ pain points can you develop solutions that matter. Whether you’re talking to a potential partner or a target customer, engage in deep listening to ensure that your product genuinely addresses their challenges.
7. Roadmaps beat business plans
Business plans are useful, but they often fail to address the real-world uncertainties that start-ups face. Roadmaps, on the other hand, allow flexibility.
Instead of adhering strictly to a business plan with rigid timelines and fixed assumptions, a roadmap reflects the company’s strategic vision and lays out the critical steps in development. We would like to see roadmaps that cover at least the market segment focus, product readiness, business model, assets, people, and finance.
The successful start-ups we’ve worked with don’t just follow a business plan – they develop adaptive roadmaps that evolve with changing market conditions, customer needs, and technological breakthroughs.
8. Market pull beats technology push
It’s tempting to develop a product based purely on technological capability and then hope the market catches up. This technology push mentality is a common pitfall, but the market almost always proves harder to crack than you expect.
Instead, market pull is where sustainable growth comes from. Innovators need to understand the real needs of the market and align their product with those needs. Whether it’s emissions reductions, cost-efficiency, or safety improvements, market demand will always drive successful commercialisation.
This is why we advocate for start-ups to focus on understanding the customer needs first and then develop the technology that fits within that landscape.
9. Think end-to-end, not just one point in time
It’s easy to think in terms of discrete milestones – like securing seed funding or launching a prototype. But building a sustainable business requires investing in the entire end-to-end journey.
Successful companies don’t just focus on raising investment for their current activities and next set of milestones; they look for partners that buy into their business roadmap from where they have been, to where they are going next, to when and how they exit.
If you’re only focused on one point in time – whether it’s R&D or a funding round – you will miss the broader picture.
10. Success is within your reach
Any innovation, any early-stage company, is naturally a high-risk proposition. It’s true, but invariably in our experience, it is not technology issues that stop companies from making progress. It’s all the other stuff! With the right skills, the right team, the right mentality, the right connections, and the right support, making progress in this industry is absolutely possible.
If you are on your innovation journey in clean, connected, or automated mobility and you feel like you might have something that can make a difference, the APC and Zenzic are here to help you make that happen.
Conclusion: The right support for mobility innovation
The journey from start-up to scale-up in mobility innovation isn’t for the faint-hearted. There are a few shortcuts and plenty of challenges. But by focusing on the right support at the right time, understanding your customers deeply, and staying adaptive in your approach, you can dramatically increase your chances of success.
Looking back over the past ten years, these lessons have shaped how we support companies in the mobility sector. We’ve learned that success isn’t just about great technology – it’s about the strategy, timing, and relationships that support its journey.
About the Advanced Propulsion Centre UK
The Advanced Propulsion Centre UK (APC) collaborates with the UK government, the automotive industry, and academia to accelerate the industrialisation of technologies that support the transition to zero-emission vehicles and towards a net-zero automotive supply chain in the UK.
Established in 2013, the APC, with the backing of the UK Government’s Department for Business and Trade (DBT), has facilitated funding for 302 low-carbon and zero-emission projects involving 529 partners. Working with companies of all sizes, this funding has helped to create or safeguard over 59,000 jobs in the UK. The technologies and products that result from these projects are projected to save over 425 million tonnes of CO2.
With deep sector expertise and cutting-edge knowledge of new propulsion technologies, the APC’s role in building and advising project consortia helps projects start more quickly and deliver increased value, accelerating new technologies to market. The APC works to drive innovation and encourage collaboration, building the foundations for a successful and sustainable UK automotive industry.
In 2020, the UK Government established the Automotive Transformation Fund (ATF) to accelerate the development of a net-zero vehicle supply chain, enabling UK-based manufacturers to serve global markets. ATF investments are accessed through the APC and awarded by DBT to support strategically important UK capital and R&D investments that will enable companies involved in batteries, motors and drives, power electronics, fuel cells, and associated supply chains to anchor their future.
For more information, go to apcuk.co.uk or follow us @theapcuk on X and Advanced Propulsion Centre UK on LinkedIn.
Please note, this article will also appear in the 22nd edition of our quarterly publication.
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