European startups
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European Deep Tech Spinouts Reach $1B Valuations in 2025
Read Full Article: European Deep Tech Spinouts Reach $1B Valuations in 2025
European universities and research labs have become a fertile ground for deep tech innovations, with 76 spinouts reaching significant milestones of $1 billion valuations or $100 million in revenue by 2025. Venture capital is increasingly drawn to these academic spinouts, with new funds like PSV Hafnium and U2V emerging to support talent from tech universities across Europe. Despite a decline in overall VC funding in Europe, university spinouts in deep tech and life sciences are set to raise nearly $9.1 billion, highlighting their growing importance. However, a notable challenge remains in securing growth capital, as a significant portion of late-stage funding still comes from outside Europe, particularly the U.S. This matters because fostering local investment is crucial for Europe to fully capitalize on its research and innovation capabilities.
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European Startup Market: Excitement vs. Reality
Read Full Article: European Startup Market: Excitement vs. RealityThe European startup market is experiencing a disconnect between the palpable excitement at events like the Slush conference and the sobering reality of its venture capital landscape. Despite signs of a potential turnaround, such as Klarna's recent public offering and increased attention to homegrown AI startups, the market has yet to recover from the global venture capital reset of 2022 and 2023. Investment levels in 2025 are on track to match those of previous years, but the region faces significant challenges in venture capital firm fundraising, with a projected decline of 50% to 60% in the first nine months of the year. However, the involvement of U.S. investors in European deals is rising, suggesting optimism for the market, particularly in AI technology where European valuations offer attractive entry points. Success stories like Lovable and Mistral, which have attracted substantial U.S. investment, indicate a shift towards a more global outlook among European founders, further bolstered by EQT's commitment to significantly increase its investment in the region over the next five years. This matters because the potential resurgence of the European startup ecosystem could lead to increased innovation and economic growth across the continent.