What is Deep Tech
and why does it matter?
We classify as Deep tech startups whose technology is based on tangible engineering innovation or scientific advances and discoveries applied for the first time as a product, often aiming to solve society’s biggest issues.
The European Deep Tech Report 2025
The fourth annual European deep tech report. In a pivotal year for deep tech, how is Europe faring, and how has the breakout of AI influenced deep tech priorities and European deep tech credentials. Created in partnership with Lakestar, Walden Catalyst and Hello Tomorrow.
Your Guide to Navigating Deep Tech
Deep tech is in our DNA. We specialize in helping clients navigate the industry with data, analysis, and insights. Here are a few key insights from our deep dive on European Deep Tech.
Introduction
Deep Tech is one of the biggest VC investment categories in Europe, growing at a rapid rate.
Explore deep tech data in the data here.
Deep Tech encompasses many industries, from Health & TechBio, to SaaS and AI, Space and Robotics.
Deep Tech is not a fixed subset of segments, but it depends on the characteristic of the business being built.
We classify as Deep tech startups whose technology is based on tangible engineering innovation or scientific advances and discoveries applied for the first time as a product, often aiming to solve society’s biggest issues.
Why do Deep Tech startups matter?
Over the next five years, 60% of revenue in “Technology” will come from Hardware, with only 40% coming from software.
And by contrast, just slightly over 20% of VC funding went to Hardware since 2016.
Not all Deep Tech is Hardware. AI, blockchain, AR/VR, quantum computing software and much more are all software-based Deep Tech.
However, Deep Tech is by far more Hardware oriented than the rest of Tech.
Almost 60% of Deep Tech funding since 2016 has been directed to hardware-related startups, 3x more than the nearly 20% for the rest of Tech.
Why Deep Tech is exciting for investors
Deep Tech startups can often target applications in multiple markets and, unlike traditional startups, have a stronger moat towards competition thanks to technology edge and IP portfolio.
Deep Tech startups can also generate higher ROI thanks to lower initial valuations and high attractiveness as acquisition targets.
Furthermore, Deep Tech is instrumental in tackling today’s biggest challenges, from climate change and food security to intractable disease and by doing so, creates new markets and unlocks societal growth.
This is also recognized by LPs in Europe, who see Deep Tech as the 2nd most promising segment in venture capital, behind only Planet Positive, according to the survey in The State of European Tech 2021 by Atomico (Chapter 2.2).
Deep Tech companies have the same or even higher probability of exiting than traditional startups.
Become a deep tech specialist
In this video, we'll be sharing exclusive data and insights on European Deep Tech in 2025 - the startups and venture capital trends in Novel AI, Future of Compute, Novel Energy, Space tech, Resilience, Compbio & Chemistry, and Robotics.
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