The latest European report on deeptech published by Dealroom, in partnership with Lakestar and Walden Catalyst, makes a clear statement: the sector is no longer marginal. With $20.3 billion invested in 2025, it now represents 32% of venture capital in Europe, compared to 15% a decade ago. This growth can be attributed to a shift by investors towards more defensible technologies stemming from scientific research and engineering.
In this changing landscape, the geographical distribution of capital is evolving. Paris has emerged as the top European hub for deeptech financing, surpassing London and Munich. This position is bolstered by major funding rounds, but also reflects a densification of the ecosystem at the intersection of research, talent, and capital.
Paris, a leadership driven by a few mega-deals and a broader fabric
The leading position of Paris needs to be nuanced. A significant portion of the funding in 2025 is concentrated in a few extraordinary operations. “The Mistral funding round alone accounts for almost two-thirds of the financing in Paris,” notes Lorenzo Chiavarini, Head of Research at Dealroom. However, attributing Paris’ dynamism solely to these operations would be misleading. “Even excluding rounds over $100 million, the activity remains consistent with the previous peak in 2022,” he emphasizes. In other words, the foundation of funded startups remains strong.
Moreover, the ecosystem is expanding. “We are seeing a diversification of segments, with players in AI like Gradium or Bioptimus, as well as in quantum and semiconductors with Alice & Bob or VSORA, and in robotics with Genesis AI or Wandercraft,” details Lorenzo Chiavarini. This sectorial network contributes to anchoring Paris as a structuring hub at the European level.
A persistent lag in capital and market structuration
Behind this rising power, vulnerabilities persist. The main hurdle lies in financing growth stages. “Currently, the majority of late-stage rounds are funded by American investors. This poses a sovereignty challenge for the European ecosystem,” explains Lorenzo Chiavarini.
Furthermore, funding gaps remain pronounced. “There is an approximately 12-fold differential between the United States and Europe in AI deeptech investments linked to fundamental models, and about two-fold in the rest of the sector,” he specifies. This financing asymmetry limits the ability of European startups to grow rapidly, invest massively, or consolidate their market.
Beyond capital, the issue is also structural. Europe has a dense scientific pool and a solid industrial base, but lags in converting these assets into global leaders. “The European ecosystem is younger, with fewer success cycles, fewer serial founders, and less recycled capital,” analyzes Lorenzo Chiavarini. He also recalls the historical role of American public policies, notably through public procurement, in the emergence of the Silicon Valley.
Signs of evolution are emerging nonetheless. “We are seeing progress with the rise of larger funds or certain reforms, especially on the side of pension funds,” he notes. Regarding regulation, the 28th regime, aimed at simplifying the creation and expansion of companies at the European level, is a step in the right direction. “This type of mechanism can help reduce frictions. But ultimately, it is the ability of companies to quickly generate revenue that will determine their success,” concludes Lorenzo Chiavarini.
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