Deep Tech is at the forefront of technological advancements, driving a wave of change across industries globally. In Europe, the potential for deep tech to reshape sectors such as healthcare, manufacturing, and energy is vast. With growing investments, thriving startup ecosystems, and a wealth of research, Europe is positioned to be a major player in the deep tech space. In this article, we will explore the state of deep tech in Europe, the companies leading the charge, the funding landscape, and the challenges that lie ahead.
Europe is experiencing a renaissance in deep tech—a sector characterized by groundbreaking advancements in artificial intelligence (AI), quantum computing, biotechnology, and sustainable energy. These innovations are not only reshaping industries but are also pivotal in addressing global challenges such as climate change, healthcare, and cybersecurity. This article delves into the current landscape of deep tech in Europe, highlighting leading companies, investment trends, and the region’s strategic initiatives.
Understanding Deep Tech
Deep tech refers to technologies grounded in substantial scientific or engineering challenges. Unlike traditional tech startups that often focus on software solutions, deep tech ventures typically involve complex hardware, advanced algorithms, and interdisciplinary research. These companies aim to solve intricate problems with the potential for significant societal impact.
Leading Deep Tech Companies in Europe
Several European companies are at the forefront of deep tech innovation:
Mistral (France)
Mistral is a Paris-based AI startup specializing in open-weight large language models. In 2024, the company secured €600 million in funding, elevating its valuation to €5.8 billion. Mistral aims to develop a sovereign AI platform for Europe, supported by President Emmanuel Macron. The company has major contracts with French corporations and the defense ministry.
Pasqal (France)
Pasqal focuses on developing quantum processors based on neutral atoms. The company’s technology aims to revolutionise industries such as pharmaceuticals, energy, and finance by solving complex problems that are currently intractable for classical computers.
Qdrant (Germany)
Qdrant offers an open-source vector search engine optimized for AI applications. Its platform enables efficient similarity search, facilitating advancements in areas like recommendation systems and natural language processing.
iCOMAT (United Kingdom)
iCOMAT specializes in advanced composite materials for aerospace applications. The company’s innovative manufacturing techniques aim to reduce the weight and cost of aircraft components, contributing to more sustainable aviation solutions.
Greenerwave (France)
Focused on sustainable energy, Greenerwave develops technologies for energy-efficient communication systems. Its solutions aim to reduce the energy consumption of wireless networks, supporting Europe’s transition to greener technologies.
Peaq (Germany)
Peaq is pioneering decentralized mobility solutions using blockchain technology. The company’s platform enables secure and transparent vehicle sharing, promoting sustainable urban transportation.
Workist (Germany)
Workist offers AI-powered tools to enhance productivity in sales teams. By automating administrative tasks, the company’s solutions allow sales professionals to focus more on customer engagement and strategy.
Tubulis Therapeutics (Germany)
Tubulis is advancing targeted cancer therapies by developing antibody-drug conjugates. The company’s approach aims to deliver potent treatments directly to cancer cells, minimizing side effects.
Investment Trends in European Deep Tech
The European deep tech sector has seen a surge in investment over the past decade. In 2024, deep tech startups in Europe raised approximately €15 billion, accounting for nearly 28% of total venture capital investments in the region. This growth reflects increasing investor confidence in technologies with long-term societal impact.
Key areas attracting investment include:
- Artificial Intelligence (AI): AI continues to be a dominant force, with applications spanning from healthcare diagnostics to autonomous vehicles.
- Quantum Computing: Companies like Pasqal are leading efforts to develop quantum processors that can solve problems beyond the capabilities of classical computers.
- Biotechnology: Innovations in biotechnology are driving advancements in personalized medicine and sustainable agriculture.
- Clean Energy: Startups focusing on renewable energy sources and energy-efficient technologies are contributing to Europe’s sustainability goals.
Strategic Initiatives and Support
Europe’s commitment to fostering deep tech innovation is evident through various strategic initiatives:
- European Innovation Council (EIC): In 2025, the EIC announced a €1.4 billion investment to support deep tech research and high-potential startups. This funding aims to accelerate the commercialization of strategic technologies within the EU.
- Trusted Investors Network: The EU has partnered with 71 venture capital firms, collectively managing over €90 billion in assets, to invest in European deep tech companies. This collaboration seeks to enhance investment in critical technologies and reduce dependence on non-European sources.
- National Programs: Countries like Spain are increasing their participation in deep tech startups through entities such as the Spanish Society for Technological Transformation (SETT) and the Centre for the Development of Industrial Technology (CDTI). These investments focus on sectors like space, electric vehicles, biotechnology, and quantum computing.
Challenges and Opportunities
Despite the positive momentum, the European deep tech sector faces several challenges:
- Funding Gaps: While early-stage investments are robust, there is a noticeable gap in late-stage funding. Many deep tech companies struggle to secure the capital needed for scaling operations.
- Talent Acquisition: The demand for skilled professionals in fields like AI and quantum computing often outpaces supply, leading to talent shortages.
- Regulatory Hurdles: Navigating the complex regulatory landscape across different European countries can impede the rapid deployment of deep tech innovations.
However, these challenges also present opportunities for growth:
- Public-Private Partnerships: Strengthening collaborations between governments and private investors can bridge funding gaps and accelerate innovation.
- Educational Initiatives: Expanding training programs and research opportunities can help address talent shortages in specialized fields.
- Harmonized Regulations: Streamlining regulatory processes across Europe can facilitate the quicker adoption of new technologies.
Europe’s deep tech sector is poised for continued growth, driven by innovation, substantial investments, and strategic collaborations. As companies like Mistral, Pasqal, and Workist lead the charge, the region is establishing itself as a global hub for technological advancement. By addressing existing challenges and leveraging opportunities for collaboration, Europe can solidify its position at the forefront of deep tech innovation.