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.
