Europe is experiencing a genuine deeptech paradox. As the Global Deep Tech Report 2026 now shows, 45 percent of all deeptech startups worldwide come from Europe. At the same time, Europe’s share of global financing volumes is only 17 percent.
Germany also lags behind its economic potential. With around 500 deeptech startups, Germany ranks fifth worldwide. The UK has approximately 1,100 companies, France around 800.
This development is of particular significance for the European startup ecosystem. After all, deeptech companies are considered central drivers of technological sovereignty, industrial transformation, and future economic growth.
Deeptech founders are highly qualified
The report shows that European founders do not lack scientific excellence. 61 percent of deeptech founders have a master’s or doctoral degree. Engineering, computer science, and management are particularly well represented.
At the same time, the data reveal structural differences compared to North America. 36 percent of European founders have prior founding experience, while in North America it is 43 percent. In terms of deeptech experience, Europe lags behind with 24 percent compared to North America’s 33 percent. 14 percent studied at one of the world’s leading top-10 universities. This figure is 29 percent in North America.
The figures suggest that Europe’s founder scene brings different prerequisites than the North American one. While scientific competence is often present, entrepreneurial experience, which can be crucial for scaling and international expansion, is often lacking.
Series A to Series B conversion rate of only 10 percent
The perspective on growth financing is particularly critical. The conversion rate from Series A to Series B is only 10 percent in Europe. In North America, by contrast, 24 percent of companies reach this next funding stage.
For investors, this confirms a familiar pattern, as many deeptech companies fail not because of their technology but because of lacking capital during the scaling phase.
The “valley of death” remains the greatest challenge
According to the Global Deep Tech Report, more than 90 percent of deeptech startups fail due to financing gaps and not due to technological deficits. Developing market-ready products, regulatory requirements, and long industrialization cycles significantly increase capital requirements.
That is why hybrid financing models are becoming increasingly important. The combination of venture capital, public funding, grants, and debt capital can help bridge critical development phases and stabilize the capital base in the long term.
Europe’s scale-up problem hampers exits
Beyond financing, the report reveals further structural challenges. The M&A exit rate in North America is 8 percent and is thus twice as high as in Europe at only 4 percent. In addition, there is a clear scaling bottleneck. While 81 percent of European deeptech startups employ a maximum of 50 employees, this share is 68 percent in North America.
Europe’s deeptech sector could create a business value of 1 trillion euros by 2030 and up to 1 million jobs. But only if we fundamentally rethink how capital is deployed. We need more investors who understand that deeptech is not a sprint – it is an ultramarathon that requires endurance, trust, and the willingness to build industry-defining companies over decades.
