Demonstration projects can represent a critical intermediate step between research and development (R&D) and large-scale commercialisation; yet many involving new sustainable technologies fail. In order to map the internal and external factors that enable or prohibit demonstration projects from reaching their goals, a case study of 21 projects was conducted. Qualitative data collected from funding applications and interviews were analysed to identify key themes. Based on these findings, the study proposes a process model outlining the key activities for setting up a new demonstration project.