Deep Tech: The Strategic Engine of Europe’s Technological Sovereignty
In a year marked by economic headwinds and shifting investment priorities, Europe’s Deep Tech sector has proven to be a stabilising force. In 2024, it attracted €15 billion in investment, accounting for nearly one-third of all European venture capital. While traditional tech funding has dropped by 60% since 2021, Deep Tech has held its ground and emerged as one of the continent’s most resilient and strategically vital sectors.

Where Growth Is Happening
The key drivers of this momentum are clear:
These sectors provide the backbone for economic security, industrial competitiveness, and the strategic autonomy Europe needs in a volatile global environment.

The Funding Gap Challenge
Despite this progress, half of Europe’s growth capital still comes from outside the continent. This dependency raises strategic concerns: without strong domestic capital sources, Europe risks losing ownership of its most promising innovations. Equally important is the need for homegrown exit strategies that keep global leaders in Europe, instead of seeing them acquired by foreign corporations.

The CEE Opportunity
Central and Eastern Europe (CEE) is uniquely positioned to play a leading role in this transformation. With world-class technical talent, strong academic foundations, and an expanding pool of experienced operators, the region offers fertile ground for Deep Tech growth. What is missing is a critical mass of local late-stage capital to help companies scale globally without relocating.

Mercaton’s Perspective
At Mercaton we focus on bridging this gap. We invest in Deep Tech companies across CEE that combine advanced engineering with operational excellence and the ambition to lead global markets. For us, Deep Tech is a foundation for economic resilience, technological independence, and Europe’s long-term competitive edge. 

Our commitment is to support companies in AI, Energy Tech, Industrial Tech, and Space Innovation that can deliver both transformative impact and sustainable growth. By combining capital with strategic guidance, we aim to ensure that Europe — and CEE in particular — not only innovates but leads.

The future of Europe’s technological sovereignty will be shaped by decisions made today. Investors, policymakers, and industry leaders must act to build stronger local investment ecosystems, accelerate late-stage funding, and create pathways for global leadership. Deep Tech is the strategic engine that will determine Europe’s role in the next wave of technological transformation.

Source: 2025 European Deep Tech Report, Lakestar / Walden Catalyst / Dealroom, 2025