European deep tech spinouts on track for near-record $9.1B funding

European university spinouts—defined as companies formed from university research—that specialize in deep tech (advanced technology based on scientific discovery) are reaching financial milestones. According to the European Spinout Report 2025 by Dealroom, these deep tech and life sciences spinouts are on track to raise a near all-time-high $9.1 billion in 2025. This projected funding comes as 76 of these companies have reached either unicorn status (a valuation of $1 billion or more), centaur status (generating $100 million or more in revenue), or both. This performance stands in contrast to the broader European venture capital market, where overall funding is down nearly 50%. The total value of this startup funnel has now reached $398 billion, driven by companies such as Iceye, IQM, Isar Aerospace, Synthesia, and Tekever.

This growing funnel is attracting new venture capital. Two new funds have emerged to target research emerging from European universities:

• PSV Hafnium: A Denmark-based firm that originated as a spinout from the Technical University of Denmark (DTU). The firm recently closed its oversubscribed inaugural fund at €60 million (approximately $71 million) to focus on Nordic deep tech. The fund has already backed SisuSemi, a semiconductor startup in Finland leveraging research from the University of Turku. PSV Hafnium’s partners noted that “The Nordic’s research institutions hold extraordinary, untapped potential.”
• U2V (University2Ventures): Operating out of Berlin, London, and Aachen, this fund is targeting €60 million (approximately $71 million) for its first fund, of which it recently completed the first closing to back university spinouts.

Despite these new early-stage funds, late-stage funding remains heavily reliant on non-European capital. Nearly 50% of late-stage funding for European deep tech and life sciences spinouts comes from outside Europe, primarily from the U.S. This reliance on external growth capital—defined as funding for scaling operations—persists even as the ecosystem produces exits, such as Oxford Ionics, which was acquired by U.S.-based IonQ. It also comes alongside large rounds for companies like Proxima Fusion and Quantum Systems, which is valued above $3 billion.

Why it matters

Academic spinouts have consolidated into a solid startup funnel worth $398 billion, attracting significant VC interest despite a broader decline in European VC funding.