European deep tech deals raised $17.7 billion in 2022

According to a new data report by Dealroom, Lakestar and Walden Catalyst Ventures, Europe’s deep tech start-ups closed off 2022 having brought in around $17.7 billion, a 22% decrease from the previous year, but still 60% above 2020 trends. The report highlights that in the second half of last year, European deep tech was the second best performer on a sector-by-sector basis, with energy being the first.

The report also shows that investor sentiment is positive towards deep tech, as it was cited as the second pick for innovation in an LP survey included in the study, trailing only societal impact models or “Planet Positive.”

The report highlights four key sectors on deep tech’s emerging frontier: novel AI, future of computing, novel energy, and space tech. In 2022, a record $4.4 billion was invested across these four sectors, more than doubling the amount invested two years prior. The future of computing tech in 2023 is already off to a strong start, with four big quantum disclosures tracked by in January alone.

Christina Franzeskides, a deep tech investor at Lakestar, argued that European deep tech talent and research could be further leveraged by maximizing IP value from Europe’s leading universities, which more often than not sponsor deep tech by forming spinout companies. Franzeskides also emphasized the importance of avoiding unconscious bias and striving towards inclusivity across all backgrounds and genders for the deep tech ecosystem to thrive.

Walden Catalyst Ventures partner Nicolas Autret also highlighted the need to identify and support scientists and entrepreneurs who are taking disruptive technologies out of the lab and turning them into commercial products, as these technologies have the potential to solve some of the many challenges humanity is facing.


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