Europe's Deep Tech sector is experiencing a surge of groundbreaking innovation. This surge is driven by visionary investors who recognize the industry's transformative potential and are committed to supporting companies tackling meaningful challenges.
During the first quarter of 2023, the European Innovation Council (EIC) Fund emerged as the leading venture capital investor in Europe. When measured by the total amount invested, European transactions rank third in terms of the number of deals. Since its 2020 launch, the EIC Fund has approved 268 investments in deep-tech companies, totaling €1.407 billion.
European investors invested $17 billion in deep-tech startups on the continent in 2022. Although this figure is lower than the record-breaking $22.8 billion in 2021, it still represents a significant increase from the $11.6 billion and $11.1 billion invested in 2019 and 2020, respectively.
Here’s a list of top 10 European Investors testing their hands on Deep Tech startups.
With its combination of financial and non-financial support, the EIC plays a key role in driving innovation and economic growth of startups. Headquartered in Brussels, EIC’s focus funds include EU’s vehicle sector, spanning from university research to early-stage startups and more established scaleups.
The EIC provides funding to DeepTech startups through its EIC Accelerator program, which offers a combination of grants and equity investments. The grants can reach up to €2.5 million, while the equity investments range from €0.5 million to €15 million or more. Since 2022, EIC invested in 71 European DeepTech startups.
Bpifrance, headquartered in Paris, made significant investments in DeepTech companies, fostering innovation and propelling the development of cutting-edge technologies.
Bpifrance's commitment to DeepTech is evident in its dedicated DeepTech Plan, launched in 2019 with a €2.5 billion budget. This plan aims to support the creation and growth of DeepTech startups, providing them with funding, mentorship, and access to networks. Since 2022, Bpifrance invested in 23 European DeepTech startups.
High-Tech Gründerfonds (HTGF) is a leading seed investor, headquartered in Berlin, actively supporting the development of deeptech startups in Europe. HTGF’s investment bucket includes companies such as Konax, CureVac, and IQM.
HTGF investment amounts typically range from €500,000 to €3 million per company, with the possibility of follow-on investments in subsequent funding rounds. HTGF's portfolio spans a wide range of DeepTech sectors, including artificial intelligence, robotics, cybersecurity, biotechnology, and nanotechnology. Since 2022, HTGF invested in 20 European DeepTech startups.
Octopus Ventures has a dedicated deep tech team with expertise in various areas, including artificial intelligence, robotics, quantum computing, and advanced materials. Octopus Ventures typically invests in deep tech startups at the Seed and Series A stages, with investments ranging from £1 million to £10 million.
Some renowned DeepTech companies securing funding from octopus ventures are WaveOptics, Magic Pony Technology, UltraSoC, Orbex, etc. Octopus ventures are also open to investing in later-stage companies with proven technology and strong market traction. Since 2022, Octopus Ventures invested in 16 European DeepTech startups.
Verve Ventures is a leading European venture capital firm that focuses on early-stage investments in DeepTech startups. Verve Ventures typically invests between EUR 500,000 and EUR 3 million spanning various DeepTech sectors, including robotics, artificial intelligence, biotechnology, and advanced materials.
Verve Ventures' commitment to DeepTech startups is evident in their recent launch of the "Verve Venture Fund I," which will invest in the best-performing startups among their portfolio of over 140 companies. Some of them include ANYbotics, Heartflow, Versarien, etc. Since 2022, Verve Ventures invested in 15 European DeepTech startups.
IQ Capital have a strong track record of identifying and supporting promising deep tech startups, having invested in over 100 companies to date. Their investment focus spans a wide range of deep tech sectors, including artificial intelligence, robotics, quantum computing, cybersecurity, and synthetic biology.
IQ Capital typically invests between £0.5 million and £10 million in early-stage companies, with the potential for follow-on investments as the companies grow. They have recently raised $400 million across two funds, demonstrating their commitment to supporting the European deep tech ecosystem.
Elaia has a proven track record of identifying and supporting promising startups in various DeepTech fields, including artificial intelligence, data science, digital health, cybersecurity, digital infrastructure, enterprise software, industrial IoT, and embedded systems.
Elaia works closely with startups to provide them with the necessary support and guidance to succeed. Elaia's DeepTech investments typically range from €500,000 to €5 million. Some examples of Elaia's DeepTech investments include Owkin, Exotec, Swile, etc.
APEX Ventures is a prominent venture capital fund that plays a pivotal role in shaping the trajectory of deep tech and medical advancements within Europe. Their primary focus is on early-stage companies, particularly at the pre-seed and seed stages, with additional capital set aside for subsequent investments.
APEX Ventures commits initial funding in the range of EUR 500,000 to 1.5 million to companies primarily situated in the DACH and CEE regions, occasionally extending their investments into the Nordics and the United States.
The primary focus of Quantonation encompasses critical domains, including profound physics, quantum computing, quantum communication, as well as post-quantum and quantum sensing. Quantonation is actively contributing to the exploration of quantum properties such as superposition and entanglement, propelling advancements in areas like molecular design, high-performance computation, and ultra-precise sensing.
Quantonation invested in over 30 companies across the globe, with investment amounts ranging from €300,000 to €5 million. Here are some examples of Quantonation's investments in DeepTech startups Alice & Bob, Qunnect, Crypto Quantique, and Kets Quantum Security.
Paris-based Jolt Capital is a private equity growth investment firm with a specific niche in mid-sized deep tech companies. Their strategic emphasis encompasses both software and hardware sectors, extending across areas such as cybersecurity, sensors, AI, and robotics.
Their particular focus is on companies with annual revenues ranging from €10 million to €50 million. Beyond financial resources, they offer invaluable insights into the challenges of scaling and provide strategic guidance to help these companies thrive.
From harnessing the power of quantum computing to revolutionizing healthcare with precision medicine, DeepTech ventures are poised to transform our world. While this path is not without its risks, the potential rewards for those who dare to venture into the unknown are immeasurable.
As we venture into this new frontier, the question remains: what transformative innovations will emerge from the depths of DeepTech, and how will they shape the future we inhabit?
