The European
Deep Tech Report
2023 Edition
January 2023
Bleeding edge Europe - Deep Tech in 2022
Renaissance 2.0 - Deep Tech innovation in
Europe
Scaling Europe Deep Tech powerhouse
Unlocking European Deep Tech potential In January 2021, we predicted a pivotal
year for European Deep Tech. Was it?
Previous edition
Massive breakthroughs are accelerating on several fronts
In our 2021 report, we highlighted the huge potential for Deep Tech in Europe.
Indeed, European Deep Tech had its best year with over $22B in funding, and billion
dollar exits.
Since then we also saw huge breakthroughs in key segments like quantum
computing (with the first 100+ qubit processor and near error-free quantum
computing in silicon-based devices being proven), nuclear fusion (almost tripling
the record for the amount of energy produced), space tech (Starlink providing
internet coverage to Ukraine, James Webb Space Telescope, new missions to the
moon), generative AI (Dall-E moving to commercial uses, Stable Diffusion text to
image generative AI launch, ChatGPT reaching 1M users in 5 days) and much more.
We are still only scratching the surface
In 2021, we also pointed out the still largely unlocked potential in Europe’s leading
academic institutions and the need for closer collaboration between the different
actors in the ecosystem to support Europe’s most promising Deep Tech startups.
A number of key questions which remain open form the centre of this year report:
● How is Deep Tech evolving? What is the state of European Deep Tech?
● Which are the emerging areas in Deep Tech? Recap on the first edition here
● How can we accelerate European Deep Tech further?
● Can we unlock the potential in academia & scientific research?
Page / 2 Source: Dealroom.co. Global startup & venture capital intelligenceDesign platform. done
European, multi-stage Global venture capital firmGlobal startup & venture capital
venture capital firm dedicated to Deep Tech investments intelligence platform
Walden Catalyst Ventures is helping early-stage
Lakestar invests with a long term view across all Dealroom.co is the foremost data provider on
companies in the U.S., Europe, and Israel build the
stages from seed to growth. We care about Europe. startup, early-stage and growth company
next generation of category-defining businesses in
We understand its regulations and politics. We ecosystems in Europe and around the globe.
Deep Tech. We back the bold and the
speak the languages and appreciate its cultures. Yet
daring—trailblazers who are changing the world and
we have a global mindset and like to build bridgesFounded in Amsterdam in 2013, we now work with
making life better for all of us.
between continents, through our deep relationshipsmany of the world;s most prominent investors,
in many different ecosystems. entrepreneurs and government organizations to
Walden Catalyst invests in innovators and
provide transparency, analysis and insights on
entrepreneurs passionate about disruptive
Lakestar’s Deep Tech team focuses on novel venture capital activity.
technologies and committed to excellence. For
scientific and engineering breakthroughs that are
making their way into companies and products forstartups, this translates into unparalleled access to
the first time. We live on the bleeding edge and are operational expertise, global reach, and a network of
constantly looking for contrarian views on how the industry captains eager to help build and scale the
world is going to change for the better. companies of the future.
Reparcar, velyvelo
Page / 3
Dealroom.co is the foremost data provider on startup, early-stage and
growth company ecosystems in Europe and around the globe.
Founded in Amsterdam in 2013, we now work with many of the world;s
most prominent investors, entrepreneurs and government organizations to
provide transparency, analysis and insights on venture capital activity. Key takeaways.
2016 2017 2018 2019 2020 2021 2022
TD
Updated
Key takeaways.
Deep Tech in Europe has grownKey emerging areas in Deep Tech Requirements to accelerate
strongly and has shown resilience have changed. European Deep Tech.
in recent market turmoil.
European Deep Tech startups raised $17.7BBy its own nature, Deep Tech is constantlyEurope has great technical talent and
in 2022, 22% less than 2021 total, but still evolving. Some segments mature to theresearch to lead in Deep Tech. Many
+60% on 2020. scaling and mainstream phases, while new European Deep Tech successes have their
ones emerge to push the boundaries of whatroots in academia, spinout processes and
Looking at Q3 & Q4 2022, Deep Tech was theis possible.unrealised potential of European universities
2nd best performing segment behind only can still be unlocked.
Energy year on year. Four core emerging segments of Novel AI,
Future of Computing, Novel Energy andOther key enablers to unlock the growth of
LPs in Europe see Deep Tech as the 2nd most Space Tech raised $4.4B in 2022, their highest Deep Tech in Europe include bridging the gap
promising segment in venture capital. total ever and double that of 2020. in funding between early-stage dedicated
Deep Tech investors and generalist funds,
VC investment in European VC investment in core emerging Deep Tech and increasing diversity and inclusion.
Deep Tech startups segments in Europe (2022)
Unlocking potential of academic
$23B spinouts
Novel Energy $1.6B
$18B
Bridging the gap between early stage
$11B 21% $1.1B
Novel AI dedicated Deep Tech investors and
generalist funds
Future of Computing$0.9B
Gender inclusion is still in the
Space Tech$0.7B
2016 2017 2018 2019 2020 2021 2022 early innings
Page / 4 Source: Dealroom.co.
Key emerging areas in Deep Tech
By its own nature, Deep Tech is
constantly evolving. Some segments
mature to the scaling and mainstream
phases, while new others emerge to push
the boundaries.
We mapped 4 core emerging areas in
Deep Tech: novel AI/ML, future of
computing, Novel energy and Space
Tech.
Other interesting segments not in these 4
areas
Advanced materials
Robotics (AI/computer vision in future of
computing)
Transportation (batteries, fuel cells, etc in
energy)
FoodTech & Agritech
1Understanding Deep Tech1 Understanding Deep Tech
2 The state of European Deep Tech
3 Deep Tech segments to watch
4 Accelerating European Deep Tech