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Over 25% of global scientific research originates in Europe, yet the region still lags behind the U.S. and China in translating that research into scalable, market-ready ventures. In other words, too few of these innovations are making it into the real economy.
The good news? This gap can be, and will be, narrowed through venture capital. The future of European innovation lies in science—and deep tech is emerging as the key bridge between the lab and the market.
European deep tech remains a strong bet.
In 2024, European deep tech startups attracted €15 billion in funding, offering investors a hedge against short-term market swings. Unlike momentum-driven sectors, deep tech focuses on long-term innovation in fields like AI, biotech, quantum computing, and advanced materials.
The UK (€4.2B), France (€3.0B), and Germany (€2.7B) lead the region, with London, Paris, and Munich emerging as core hubs. Still, half of all growth capital comes from outside Europe.
What’s more, deep tech companies raise significantly more capital than regular tech startups at nearly every stage, especially among top-performing companies. Data from 2023–2024 shows that top quartile deep tech startups consistently raise larger rounds in the Seed, Series A, and Series B stages. Even in Series C+, where median funding narrows, the top quartile of deep tech still raises 8% more than other tech peers.
Innovation is still underfunded in the EU budget.
Despite a core budget of €170 billion/year, only 10% is allocated directly to innovation, including Horizon Europe and digital programs. While these initiatives support vital R&D, they fall short of the funding needed to bring scientific breakthroughs to market.
Several new deep tech-focused funds are emerging across Europe, aiming to back science-driven startups and strengthen regional innovation ecosystems. Among them are:
Iron Wolf Capital, a Vilnius-based VC firm, has raised over €30 million toward its €100 million target for a new fund. Backed by Lithuania’s state bank ILTE and more than 40 family offices across Europe, the fund will invest in 25 startups across biotech, energy, spacetech, and AI
Lunar Ventures: The German-based fund announced a €50 million Fund II, targeting pre-seed deep tech investments. Backed by institutions like Isomer Capital and Exor’s Lingotto, the fund emphasizes support for technical founders from the earliest stages.
Cambridge Innovation Capital (CIC): CIC launched a £100 million "Opportunities Fund" to invest in scale-up startups, particularly those emerging from Cambridge University. The fund has already invested in companies like Pragmatic Semiconductor and Riverlane.
Innvierte Deep-Tech Tech Transfer Fund: A joint initiative by the European Investment Fund and Spain's CDTI, this €353 million fund aims to support deep tech startups and technology transfer in Spain.
Cathay Innovation: The Paris-based firm launched a $1 billion Fund III, focusing on AI startups in sectors such as digital health, fintech, and energy. The fund has already backed 14 companies, including Nabla and Mogic AI.
Going forward, we bring you insights from two VC investors who work closely with scientist-entrepreneurs, Sandra Golbreich from BSV Ventures, and Julia Wagner from Positron Ventures, on what it will take to turn Europe’s scientific edge into market leadership.
🎧 Podcast Spotlight | Bridging Science and VC
Julia Wagner, Investor at Positron Ventures, shares her journey from studying mathematics and contemporary dance to funding some of Europe’s most innovative science startups.
In this episode of 0100 Impact Talks, she breaks down how deep tech investments work and why they’re necessary for the future.
Julia discusses the real-world challenges of transforming scientific research into viable startups, the role of venture capital in advancing technologies such as AI, biotech, and quantum computing, and what Europe can do to better support innovation.
Key insights from the episode:
Bridging the gap – Why it’s still hard to connect scientific research with investors, and what’s needed to close that gap.
The future of tech – How deep tech is reshaping industries and why it needs a different kind of investment strategy.
Long-term impact – Why patient capital and a long-term vision are essential to support meaningful innovation.
🎧 Podcast Spotlight | Investing in Critical Tech
As Europe ramps up conversations around defense and strategic autonomy, one area stands out: critical tech. These are the "dual-use" technologies that serve both civilian and defense needs, and they’re becoming central to Europe’s innovation and security strategy.
In this episode, we talk with Sandra Golbreich, General Partner at BSV Ventures, a firm backed by the NATO Innovation Fund. Sandra shares how BSV is investing in scientific breakthroughs with real-world impact, from quantum computing, life sciences, to aerospace and advanced materials.
What you’ll learn:
What “critical tech” and “dual-use” actually mean in today’s geopolitical and tech landscape
Why deep tech may be a more resilient investment than SaaS
How Europe can better support its innovators — and stop losing its top talent and IP to the U.S.
The role of venture capital in bridging academic research and market-ready innovation
If you’ve been following recent EU leadership speeches on defense, innovation, and economic resilience, this conversation adds the context you need.
🗓️ Exploring all things Deep Tech at 0100 International. First speakers are confirmed, with many more to be announced soon!
We’ll keep the momentum going on deep tech at our upcoming event, 0100 International, with a dedicated panel on how VC investors are dealing with long R&D cycles, delayed exits, and evolving fund strategies in this space.
Joining us on stage will be Craig Douglas, Partner at World Fund, one of Europe’s leading climate tech funds. Craig brings over a decade of experience investing in climate startups and has been a trailblazer in ESG, co-designing a performance-linked impact model now used by over 50 funds. He also advises the EU Commission on Energy, offering a unique policy-meets-investment perspective.
We’re also excited to reconnect with the brilliant Tanja Emmerling, Partner and Head of HTGF Berlin at High-Tech Gründerfonds. Since 2014, she has led investments in AI, IoT, IT security, mobility, and blockchain. A strong advocate for female representation in tech investing, she also mentors startups and supports early-stage innovation across Germany and beyond.
More speakers to be announced soon!
🌐 Around The Ecosystem | What’s Really Driving Innovation?
We’re not the only ones paying attention to the growing momentum behind science-driven innovation. The conversation around deep tech is gaining real traction across the European VC, PE, and policy landscape. Here’s a spotlight on other news coming from across the ecosystem:
🗞️ News | ESA launches deep tech centre in Switzerland to drive EU space innovation
The European Space Agency - ESA has officially opened the European Space Deep-Tech Innovation Centre in Villigen, Switzerland, marking a major step in advancing Europe’s deep tech capabilities for space.
Located near the Paul Scherrer Institute (PSI) at Park Innovaare, the center will serve as a hub for interdisciplinary innovation in quantum, data, and advanced materials.
📚 Report | The 2025 European Deep Tech Report
The 2025 European Deep Tech Report, published by Lakestar, Walden Catalyst, and Dealroom, highlights the growing importance of deep tech in shaping Europe's economic future and geopolitical strength. Deep tech includes advanced fields such as AI, quantum computing, space technology, robotics, and biotechnology, which are important for addressing global challenges, including climate change, health crises, and national security.
The report makes it clear that Europe must prioritize scientific and engineering breakthroughs, not just incremental tech improvements, to remain competitive on the world stage.