McKinsey data shows deeptech failure rates resemble those of traditional tech startups, with higher technical risk early on but lower risk during later commercialization, and a high patenting rate (about 45%) provides a safety net for banks and investors.

Licensing as a business model can enable rapid scale, as demonstrated by Raspberry Pi, which scaled with limited working capital needs.

Deeptech funding can be pricier upfront, with up to 40% more capital needed to reach revenue milestones; venture debt is highlighted as a tool to bridge early gaps without diluting ownership.

Some venture returns unfold on shorter timelines than expected, with examples like Seraphim delivering three IPOs in 2021 after eight years or less of investment in certain cases.

The European deeptech landscape is evolving with rising funding, broader investor interest, and practical pathways such as licensing and debt that help mitigate early-stage risks and costs.

European deeptech investment reached a record €15 billion in 2024, signaling growing investor appetite and sector legitimacy.

Deeptech now attracts a broad base of investors, accounting for roughly a quarter to a third of Europe’s total VC in 2024, making it the largest VC sector on the continent.

Europe is home to successful global deeptech names like Aleph, Wayve, and Sunfire, supported by programs such as Horizon Europe and the European Innovation Council, with about half of late-stage VC funding coming from outside Europe.

Industry advocates urge continued collaboration among governments and investors to channel more capital into European deeptech to accelerate commercialization and scale category-leading technologies.

As funding grows, founders should leverage practical routes—such as licensing models—to scale without excessive working capital.

Founders must master storytelling to attract non-specialist investors, and space accelerator programs are helping shift pitches from pure science to market problems and solutions.