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Could deeptech serve as Europe’s path to autonomy from the US?
A new report suggests that deeptech could be essential for Europe to achieve autonomy from the U.S., with €15 billion in venture capital invested in 2024. Despite strong investments, European startups still depend on U.S. resources. Experts highlight the need for policy changes to foster deeptech growth amid geopolitical pressures, while also recognizing Europe’s potential in AI and photonics computing.
Key points
- Europe faces geopolitical and market pressures due to U.S. tariffs.
- In 2024, deeptech attracted €15 billion in investments and accounts for one-third of venture capital in Europe.
- M&A activity in deeptech reached $12.2 billion, but many startups depend on U.S. capital.
- Deeptech presents an opportunity for Europe to combat risk-averse investment trends.
- Experts urge for policy changes to support a deeper risk-taking culture in tech.
- Europe has strong research capabilities in photonics and AI, which can be leveraged for growth.
- The U.S. science funding cuts may lead to a brain-drain that Europe can capitalize on.
Why it matters
- The increasing trend of deeptech investment aligns with global IT trends focusing on advanced technologies.
- Historically, Europe's tech scene has lagged behind the U.S. but current geopolitical shifts present new opportunities.
- The importance of fostering local ecosystems resonates with other regions looking to diminish reliance on external technologies, similar to the rise of tech independence narratives globally.
Deeptech represents a promising avenue for Europe to enhance its technological autonomy and resilience, provided that strategic policy frameworks and investment in local talent are prioritized.