The 2026 European Deeptech Report: Sector reaches $690B as VC share hits record

Europe's deeptech sector is experiencing unprecedented growth, now valued at $690 billion and attracting a record share of venture capital. This surge signifies a crucial moment for the continent, as deeptech emerges as a vital engine for addressing global challenges and bolstering technological independence. With strong research foundations and a burgeoning demand for sovereign solutions, Europe is strategically positioned to leverage its deeptech capabilities for economic advancement and global impact. Investment in European deeptech reached $20.3 billion in 2025, constituting 32% of all venture capital, a dramatic increase from a decade prior. This sustained investor confidence, even as broader tech investment declined from its 2021 peak, highlights the resilience and strategic importance of deeptech. Geopolitical shifts are further fueling investment in critical areas like AI infrastructure, semiconductors, and defence, underscoring the sector's role in ensuring economic security and technological sovereignty. While Paris leads as a deeptech hub, with the UK and Germany also attracting significant funding, challenges persist. A notable portion of late-stage funding originates from outside Europe, and European companies often scale more slowly than their US counterparts. Strengthening domestic capital availability and addressing the growth-stage funding gap are therefore critical for Europe to fully realize its deeptech potential and compete on the global stage.