From Startup Pivots to Industry Lessons: Doug Wiggin on Building Hard Tech That Lasts

Former SWITCH Materials CEO Doug Wiggin.

When Doug Wiggin took the helm as CEO of SWITCH Materials in 2007, he confronted the classic challenge of hard tech: knowing when to listen to the market and when to pivot. Unlike the software world, Doug quickly learned that in molecular electronics and health sciences, making things work economically and at scale is just as important as technical performance. The real progress at SWITCH began when the team recognized their initial market wasn’t the right fit, and made the bold decision to shift focus, unlocking new traction and growth.

This week’s 25th anniversary interview spotlights Doug’s honest reflections on startup realities past and present. Funding environments may be tougher today, but Doug’s core advice remains evergreen: prove your technology meets a real business need, get early feedback, and don’t be afraid to change course. Venture partners like Pangaea Ventures played a pivotal role by introducing SWITCH to key industry contacts, demonstrating how strategic partnerships can accelerate hard tech innovation by connecting entrepreneurs to the market realities that matter.

And now, our interview with Doug:

Pangaea Ventures: Looking back to 2007 when you joined SWITCH Materials as CEO, what were some of the biggest challenges and surprises in building a hard tech company at that time, especially in the molecular electronics and health sciences spaces?

Doug Wiggin: The biggest challenge was understanding (and accepting) what the market was looking for in terms of a solution. It really required a deep dive into the needs of the customers, from both technology and economic perspectives. Also, as I came from the software industry where the cost of goods is zero, getting to understand the implications of manufacturing was certainly a challenge as well.

Specifically in our space, we were essentially a technology solution in search of a problem that we could solve. At first blush, we seemed to be a good fit for the target market, but as we dove deeper into the needs of the customers, I was surprised by the nuances of those needs. Frankly, it took longer than it should have to accept the fact that we were not a good fit  for the chosen market (and convince the investors of this fact).  The traction we gained once we shifted gears was quite remarkable.

PV: How did the environment for hard tech startups in 2007 differ from what entrepreneurs face today?

DW: I think that today’s economic environment is much tougher for entrepreneurs than in 2007, partially due to the impact of COVID. This is especially true for companies with hard tech targeting cleantech - in the early 2000’s there was a bit of a “gold rush” to cleantech by VC’s, which began to subside once the VC’s realized that in order to gain market adoption, the solution had to be both better and cheaper than existing solutions. This resulted in VC’s retreating to familiar technologies (predominantly software) in the cleantech space and the accompanying familiar business models.  

Today, getting funding for hard tech companies requires much more stringent proof points - does the technology work and is anybody willing to pay for it?  This latter proof point requires early revenue and a demonstration that the market is sufficiently large to justify an investment. 

PV: What key learnings or moments from your early days building SWITCH stand out as pivotal to the company’s trajectory?

DW: There are several key learnings:

• Be certain that your technology meets a specific business need

• Be certain that the deployment of your technology will result in an economic benefit to the purchaser

PV: From your experience, how did venture partners like Pangaea Ventures support SWITCH’s journey in unique ways that helped the company overcome challenges or accelerate innovation?

The primary benefit of Pangaea’s involvement was the introduction to players in the glazing industry in the early going. Even though the initial target market was not realized, these introductions proved to be critical in understanding the barriers to market adoption, and how the company needed to evolve.

PV: What advice would you give to a hard tech CEO building and fundraising today?

DW: My advice is to take the learnings from Question 3 to heart. Don’t believe your own BS, but get out in front of customers as soon as you can and really listen to what they tell you. Depending on what they tell you, don’t be afraid to pivot to a  market for which your solution is a better fit.  Make the pivot quickly, once you have determined that the initial market will not materialize in the required timeframe. In other words, don’t beat a dead horse just because you have invested time and energy in a market that is unobtainable.