European venture capital surges with focus on deep tech and defense

The European venture capital market is experiencing a surge in specialized funding, with 11 new funds raising over €1.6 billion. This influx of capital is supporting a diverse range of startups, from pre-seed ventures to growth-stage companies, with total funding across 58 rounds reaching approximately €5 billion.

Deep tech and decarbonization are central to this investment trend. Berlin-based World Fund has highlighted the success of its portfolio company, Finland’s IQM Quantum Computers, which recently became the first European quantum computing firm to list on a major exchange via the NASDAQ. IQM is viewed as a key player in strengthening European technological sovereignty and reducing carbon emissions.

Additionally, defense technology is emerging as a significant driver of investment. Due to shifting security environments, there is increased capital flowing into sectors such as drones, autonomous systems, cybersecurity, and satellite infrastructure. Investors are increasingly targeting companies that offer both commercial and defense applications to bolster strategic resilience.