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By providing non-dilutive grants, equity funding, and critical resources, EIC is transforming the deeptech funding landscape in Europe.

The model is a blueprint for the future of innovation, supporting companies that are building the technologies that will shape the world.

The Hybrid Financing Model: A Perfect Fit for Deeptech.

The EIC’s combination of grants (non-dilutive) and equity funding helps startups balance risk while preserving equity, making it easier to bring disruptive technologies to market.

EIC Pathfinder also funds early-stage high-risk projects with up to €3 million in grants, offering a safety net for pioneers in emerging fields.

The EIC, is a key partner tp traditional VCs, providing deeptech startups with flexible funding to overcome scaling challenges. These models help bridge the funding gap, ensuring innovation thrives alongside VCs or Family Offices

Key Highlights of the EIC's Impact:

- €1.5 billion allocated to over 1,000 deeptech startups across Europe.

- Average €17.5 million in funding per company, including €2.5 million in non-dilutive grants and up to €15 million in equity investments.

- In 2023 alone, the EIC committed over €500 million to 250 deeptech projects, in sectors like AI, quantum computing, biotech, and clean energy.

(source: Les Echos)

The EIC is a key partner to traditional VCs and Family Offices, providing deeptech startups with flexible funding to overcome scaling challenges. These models help bridge the funding gap, ensuring innovation thrives.

From AI and quantum computing to clean energy and advanced materials, DeepTech companies are solving some of the world’s most critical challenges, with the potential to redefine industries. 
But to succeed, these ventures need long-term investment and strategic patience, something the traditional VC model may not always provide even more in 2024.

🚀 Why DeepTech Demands a New Approach
Given the current lack of M&As and the resulting liquidity challenges for LPs, 2024 is the perfect time to invest in DeepTech. Unlike other startups, DeepTech ventures offer a solid and less risky output over time thanks to IP, providing LPs with strong long-term returns.

💡 A Strategic Opportunity for VCs and LPs
The shift to more patient capital doesn’t just benefit startups—it’s an incredible opportunity for investors. As LPs increasingly understand the long-term value DeepTech can deliver, there’s growing momentum for funds that can support the sector through extended timelines.
In fact, many LPs are already looking for ways to tap into the transformational potential of DeepTech while managing risk over the long run. According to PitchBook (2024), investors are becoming more open to models that focus on strategic value and extended growth cycles, especially in high-impact areas like AI, sustainability, and biotech.

🌍 The Future of DeepTech is Now
DeepTech is not just a buzzword—it’s the future of innovation. And as we look toward 2024, it’s clear: VCs who embrace this shift and adapt their strategies will be the ones at the forefront of the next wave of transformative breakthroughs. The opportunity is immense. With the right investment models in place, we can drive not only financial returns but also create lasting positive impact across industries.
Is your fund ready to seize the DeepTech opportunity?

The landscape of early-stage investment is evolving rapidly. Traditional VCs are feeling the heat as the average duration to return funds to LPs has stretched to 10-12 years, pushing them to prioritize quick exits and often overlooking startups that need more time to mature.

Consequences?

The emergence of Family Offices: With over $6+ trillion in assets, family offices are becoming key players in early-stage funding.

Why?

Strategic and Patient Capital: Transitioning to more active investors, family offices offer more strategic, patient, and flexible capital.

This shift is providing startups with the time they need to reach their full potential, reshaping the early-stage investment landscape.

This transformation is not just about funding; it's about nurturing innovation and fostering long-term growth.

My key insights from the Barcelona Deep Tech Summit who takes place this week.

This morning, investors and startups connected for a day of strategic meetings, showcasing cutting-edge innovations and exploring new funding opportunities.

Key Takeaways on Deep Tech Funding in Europe:
- Increased Investor Confidence: European investors are ready to back high-risk, high-reward Deep Tech ventures.
- Market Fit is Crucial: Investors seek startups with strong market applications and clear growth potential.
- Public Funding is also very important: European initiatives help de-risk early-stage Deep Tech ventures, making them more attractive to investors.
- Global Vision Matters: Investors are looking for startups with international scaling potential.
- Sustainability is a Must: Deep Tech solutions with a focus on sustainability are more likely to attract funding.

What a productive event! The future of Deep Tech in Europe is bright, with the right mix of innovation, investment, and support.