European Union Pushes Pension Funds to Bridge Deep‑Tech Funding Gap

Data from the European Innovation Council show that Europe’s deep‑tech ecosystem is gaining momentum: three new deep‑tech unicorns were created in the past year, twelve financing rounds exceeded €100 million, and companies supported by the EIC have attracted a total of €15.5 billion since 2019. Private capital follows each euro invested by the EIC by €3.5, and relocations of firms out of Europe are now under 1 percent.

Polish officials note a 77 percent rise in deep‑tech financing, with almost 100 transactions worth over 2 billion zł in the last two years, supported by programmes such as PFR DeepTech and Innovate Poland. At the same time, experts warn that Europe’s venture‑capital supply, especially for early‑stage biotechnologies, remains insufficient. Pension funds across the EU manage about $3.4 trillion, yet only a tiny share is allocated to venture capital. Shifting just 1‑2 percent of those assets could unlock billions of euros each year for European startups.

The EU is drafting a “Biotech Act” to strengthen funding for life‑science ventures, aiming to reduce reliance on U.S. capital that currently dominates European biotech M&A—eight of the ten largest 2026 deals were led by American buyers. Policymakers argue that without stronger financing, Europe risks losing future economic value, jobs, and tax revenues.