𝗗𝗧𝗟 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 – 𝗙𝗿𝗼𝗺 𝘂𝗻𝗶𝘃𝗲𝗿𝘀𝗶𝘁𝘆 𝘀𝗽𝗶𝗻𝗼𝗳𝗳𝘀 𝘁𝗼 𝗺𝗼𝗼𝗻𝘀𝗵𝗼𝘁𝘀?

Lots to like (pan-European event), but also time to reflect on the emerging state of deeptech investing in Europe. Let’s unpack.

𝗥𝗼𝗹𝗲 𝗼𝗳 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲𝘀 - DeepTech Alliance is a “private non-profit association of entrepreneurship hubs associated with universities and research institutions”. They organise industry themes which attract corporates seeking innovations. Mixing young startups with corporates is a huge challenge, like getting elephants in a glass room. What is essential here is for a start up to get support and introductions before going to corporates. Deeptech Labs are leading edge in that respect (see https://dtl.vc/programme/).

𝗣𝗼𝗶𝗻𝘁 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝘃𝘀 𝗺𝗼𝗼𝗻𝘀𝗵𝗼𝘁 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 - DeepTech Alliance’s Chairman used the DealRoom report 2025 to suggest deep tech statups are better investment bets than “regular tech”. This is an uplifting message but apart from the challenge of definitions (what is regular tech vs deeptech?), the laws of average don’t capture well the game of exceptions that venture financing is really about. In fact, this masks two key challenges of deeptech investing:
👉 Making the difference early between point product companies (which will be quickly exited to larger corporates) and moonshot companies (which may need years to get to revenues).
👉 The challenge of financing moonshot companies in Europe: they sit uncomfortably between the classic VC model ($10-15m to get to revenues) and growth capital funds (which can participate in >$100m rounds but only for companies generating >$10m of annual revenues).

This raises all sorts of 𝗶𝗻𝘁𝗿𝗶𝗴𝘂𝗶𝗻𝗴 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗳𝗼𝗿 𝗱𝗲𝗲𝗽𝘁𝗲𝗰𝗵 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝗻 𝗘𝘂𝗿𝗼𝗽𝗲:
👉 Are university spinoffs the best source for moonshots? Or do deeptech moonshots stem more often from real life grinding experience? Exhibit A: Helsing.
👉 Are commercial investors (in Europe) able to finance moonshots? For one Exploration Company (financed by commercial investors but driven by public procurement), how many SiPearls (mostly funded by public and corporate investors so far – disclosure: I am on the Board).
👉 Are investment returns more in me-too companies (generative AI, serial entrepreneurs, US or US-minded investors) or contrarian investments? Contrast Black Forest Labs (AI for visual intelligence, financed by Andreessen Horowitz and Salesforce) vs. Hybrid Air Vehicles (traditional aircraft using airship properties, UK company financed to date by family offices and individual investors – disclosure: I am on their Advisory Board).”

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📎 Sources:
‍https://lnkd.in/e_JPhJu9
‍‍https://lnkd.in/eeX5rg5f
‍‍https://lnkd.in/eJrvSbVk