In the midst of geopolitical tensions and volatile markets, the issue of Europe is to endure the storms for us, especially since President Trump seems to have his pound rates of the continent, great.
But an extensive new report claims that DeepTech is ready to become an important pillar of Europe’s safety, defense and future autonomy, especially from the US
DeepTech attracted € 15 billion ($ 16.3 billion) in venture investments in 2024, according to a report of 184 pages by venture companies Lakestar, Walden Catalyst, Dealroom and Deeptech Conference, Hello tomorrow. The report also showed that almost a third of all risk capital invested in Europe is now going to in -depth technology.
M&A activity in space rose to $ 12.2 billion last year, the report said, but it also discovered that European DeepTech startups are still dependent on the US for outputs. In addition, 50% of the growth capital that is collected by DeepTech Startups from outside the continent comes.
Yet DeepTech could also be seen as a hedge against normal “momentum investment” between venture capitalists, the report said.
The co-author Lukas Leitner of the report, also a DeepTech investor at Lakestar, told Techcrunch that, although geopolitical tensions are considerable challenges, Europe must embrace the moment, and DeepTech could be the key that unlocks future resilience for the continent.
However, the road that lies for us is not without challenges. The US has a “flywheel effect” in Deeptech, while the European ecosystem is still immature, Leitner noted. “We have a flywheel in the ‘shallow’ technical scene. You see many second founders, coming from Revolut and so on, building great companies. But not yet from DeepTech companies. ‘
“Europe has strong research institutions, engineering talent and supporting public sentiment for deep tech, but there must be policy changes to promote a culture that supports taking risks,” he added.
Arnaud de la Tour, the CEO of Hello Tomorrow, said that the idea that Compute-Arm-Europe would always remain in AI, was recently challenged by the appearance of Open-source Deepseek: “It is a huge opportunity for Europe, because we have great AI talent because we have a great AI talent […] Many want to come back to Europe because of the geopolitical landscape. But we absolutely have to have the right policy framework to unlock the kind of potential that we have. “
Leitner pointed out that the relative weakness of Europe is compensated in compensation for its strengths in photonics computing, which offers major benefits in speed and efficiency. “We are really good in Europe with photonics, because we have good laser systems, and we have good fundamental research on the photonic side,” he said.
De La Tour added that Europe could also benefit from a brainier in the US, since science is rejected by the Trump government. “The National Science Foundation, the biggest proponent of founder-conducted research in the US, has lowered its budget by half. Many of those big scientists no longer have a job, and many can come to Europe, “he said.
