THE

2023EUROPEAN

DEEP

TECHREPORTNovember2023Executive

Summary1.

DEEP

TECH

DEFINED–

DeepTechisfundamentallynewscienceandengineeringmakingitswayintoproductsandcompaniesforthefirsttime–

Thesetechnologieshavehistoricallyunleashedmega-wavesofinnovationssuchastheinventionofelectricityorthetransistor–

DeepTechcompanieshaveadifferentriskprofile(e.g.,hightechrisk,lowermarketrisk)andrequireanewapproachtoinvesting2.

THE

EUROPEANDEEP

TECH–

EuropehaswhatittakestobecomeaglobalhubforDeepTechexcellence:Strongfundamentalresearch(e.g.,6schoolsintop20schoolsgloballyforcomputerscience),well-educatedtalent(~1.5xthenumberofSTEMgraduatesvs.theUS),morepublicsupportthaneverbefore(e.g.,€1bnNATOfund,

SPRIND,JEDI),andpositivecitizensentiment(90%ofEuropeansthinkthattheoverallinfluenceofscienceandtechispositive)OPPORTUNITY3.

FUNDING

LANDSCAPE–

Overall:

DeepTechisamongstthemostresilientVCcategorieswith~$15bnYTD2023(almostonparwith2022vs.-70%inFintech)–

Geographical:

TheUK($3.4bn),France($3.2bn),andSweden($3.2bn)havereceivedmostDeepTechfundingacrossEurope–

Deep

Tech

hubs

are

emerging:

Stockholm($3.2bn–mega-rounds),London($1.5bn),Paris($1.5bn),Grenoble

($1.2bn–mega-rounds),andMunich($700m)–

Exits:

ThemostnotableexitsweretheIPOofARM(~$54bn)andacquisitionofInstaDeepbyBioNTech(~$562m)2Executive

Summary4.

SEGMENT

DEEP

DIVESNOVEL

AIFUTURE

OFCOMPUTESPACE

TECHNOVEL

ENERGYCOMPUTATIONALBIOLOGY

&

CHEMISTRY+50%vs.2022,recordyear$1.3bn+10%vs.2022+5%vs.2022-50%vs.2022-50%vs.2022infunding(1.5x2021)

($1.1bnvs.$900m)($784mvs$737m)($656mvs.$1.3bn)($288mvs.$505m)5.

CHALLENGES

&–

SomeofthebiggestchallengesthatremaininEuropearetoencouragemoreentrepreneurstomoveintoDeepTech,toharmoniseuniversityspinoutterms,toformmoredensetalent/excellenceclusters,toincreasetheLPbase

andinvolvementofinstitutionalinvestors,tostresstheimportanceofgovernments&corporationsascustomers,tostrengthentheexitchannels,andtopromotediversityacrossfounders&investorsRECOMMENDATIONS–

Thesechallengescanonlybe

tackledifEuropeactsunitedandembracescoopetition3About

this

reportMethodologyDeep

Tech

isconstantlyevolvingSometechnologiesthatwereonceconsidereddeephavenowbecomemainstreamandwidelyadopted.

LLMsaregoingthroughthistransitioncurrently.

This

iswhycertain

companiesareincludedin

previousreportsbutnotin

thisyear'sreport.ThetermDeepTechinvokesgreatexcitementforsome,scepticismforothers,andsometimesbothsimultaneously.Asaresult,

fundingnumbersmayvary

fromyeartoyear.Data

cut-offdatesThe

reportisreleasedbeforetheendof2023.Greatexcitementhasbeengeneratedbyquantumcomputing,

thefirstglimpseofan

artificialgeneralintelligence,

ornewproteindesignsolutions.

ArtificialIntelligencealonecouldaddanother$13trillion

totheglobaleconomyoverthenextdecade,

accordingtoMcKinsey&Company.

The

potentialvalueofnuclearfusionorcuringcancerishardtooverstate.The

EUisheavilyinvestingin

strengtheningEurope’s

Deep

Tech

ecosystem.

Butthereisaworrythatthiseffortisinsufficientlysupportedby

effortstomake

Europemorecompetitiveandentrepreneurial.Asaresult,

fundingnumbershavebeenextrapolatedfrom1November2023,

totheendoftheyear2023.Data

sourcesDealroomistheprimarydataproviderforthisreport.Referencestoadditionaldatasourcesandreportscan

befoundon

each

slide.This

reportaimstobetterestablishwhatDeep

Tech

actuallyis,

howEurope’secosystemworks,

whatit’s

lacking,

howitcan

competeandwhatdesirablepolicygoalsmightbe.Meanwhile,

there’s

alsoscepticism,

notabouttheseinnovations,

butabouttheterm

‘Deep

Tech’.

Firstly,

it’s

rathervague.Secondly,

itimpliesatoonarrowfocusoncooltechnologiesfortheirownsake,

whilelosingsightofcommercialisation

&competitiveness.PreviouseditionsoftheDeepTechReport2021:

the

yearof

Deep

Tech.8January2021202120224About

the

authorsThankyoutoallcontributorsfortheirvaluedinsight:AlexPasteur,

F-PrimeKlaus

Hommels,

LakestarCyril

Vancura,

imec.xpandLilian

Schiwch,

cylibSteven

JacobsChristina

FranzeskidesLakestarLukas

LeitnerDaniel

Metzler,

Isar

AerospaceEmma

Schepers,

Verve

VenturesEmmanuelle

Martiano

Rolland,

AqemiaEric

Leupold,

DeutscheB?rseFerdinando

Sigona,

LocalGlobeGianluigi

Baldesi,

ESAMark

Boggett,

SeraphimLakestarLakestarMarkus

Pflitsch,

Terra

QuantumMaximilien

Levesque,

AqemiaMoritz

von

der

Linden,

MarvelFusionRasmus

Rothe,

MerantixRoger

Havenith,

EIFNicolas

AutretWaldenCatalystLorenzo

ChiavariniDealroomHerbert

Mangesius,

VsquaredHermann

Hauser,

ARM&

AmadeusCapitalJonas

Andrulis,

Aleph

AlphaSusanne

Schorsch,

AmadeusCapitalThéau

Peronnin,

Alice&BobYoung

Sohn,

WaldenCatalyst5About

the

authorsEuropean,multi-stageventurecapitalfirmGlobalventurecapitalfirmdedicatedtoDeepTechinvestmentsGlobalstartup&venturecapitalintelligenceplatformLakestarinvestswithalong-termviewacrossallstagesfromSeedtoGrowth.

We

careaboutEurope.

We

understanditsregulationsandpolitics.

We

speakthelanguagesandappreciateitscultures.

Yet

wehaveaglobalmindsetandlike

tobuildbridgesbetweencontinents,

throughourdeeprelationshipsin

manydifferentecosystems.WaldenCatalyst

Venturesishelpingearly-stagecompaniesin

theUS,

Europe,

andIsraelbuildthenextgenerationofcategory-definingbusinessesin

Deep

Tech.

We

backtheboldandthedaring—trailblazerswhoarechangingtheworld

andmakinglifebetterforallofus.Dealroom.coisaglobalintelligenceplatformfordiscoveringandtrackingthemostpromisingcompanies,technologiesandecosystems.

Clientsincludemanyoftheworld’s

foremostorganisationssuchasSequoia,

Accel,Index

Ventures,

McKinsey,

BCG,

Deloitte,

Google,

AWS,Microsoft,

Stripe.WaldenCatalystinvestsin

innovatorsandentrepreneurspassionateaboutdisruptivetechnologiesandcommitted

toexcellence.

For

startups,

thistranslatesintounparalleledaccesstooperationalexpertise,

globalreach,

andanetworkofindustrycaptainseagertohelpbuildandscalethecompaniesofthefuture.Lakestar’s

Deep

Tech

teamfocuseson

novelscientificandengineeringbreakthroughsthataremakingtheirway

intocompaniesandproductsforthefirsttime.

We

liveon

thebleedingedgeandareconstantlylooking

forcontrarianviewson

howtheworldisgoingtochangeforthebetter.Dealroompartnerscloselywithlocaltechecosystemdevelopmentagenciesandenablers,

tocreateacomprehensivemulti-dimensionalblueprintofthetechecosystem,

includingcapital,

talent,

innovation,entrepreneurshipandoveralleconomicdynamism.6Content1.

DEEP

TECH

DEFINED

page

82.

THE

EUROPEAN

DEEP

TECH

OPPORTUNITY

page

203.

FUNDING

LANDSCAPE

page

31GEOGRAPHY

LENS,

INVESTOR

LENS,

EXIT

LENS4.

TECHNOLOGY

/

SEGMENT

DEEP

DIVES

page

46NOVEL

AI,

FUTURE

OF

COMPUTE,

SPACE

TECH,

NOVEL

ENERGY,

COMPUTATIONAL

BIOLOGY

&

CHEMISTRY5.

CHALLENGES

&

RECOMMENDATIONS

page

1111.DEEP

TECH

DEFINED8Wedefine

DeepTechasnovel

scientific

or

engineering

breakthroughsmakingtheirwayintoproductsandcompaniesfor

the

first

time9Today’sglobal

problemsrequirefundamentallynew

scientific&engineeringbreakthroughstosolvethemDeepTechisinstrumentaltotacklingtoday’sbiggestchallenges,fromclimatechangeandfoodsecuritytointractabledisease.POVERTY

&INEQUALITYRESOURCESCARCITYPHYSICAL

&MENTAL

HEALTHCLIMATECHANGEPRIVACY

&CYBERSECURITYFREEDOM

&SOVEREIGNTY10Technologicalbreakthroughshavehistoricallyunleashedmega-wavesofprogressCURRENTMEGA-WAVEMajorhistoricmega-wavesofprogresshavestemmedfrombrandnewtechnologicalinnovations,forexamplethecombustionenginesinthelate1800sleadingtotheindustrialrevolution.Artificial

IntelligenceFuture

of

ComputeSpace

TechThesemega-wavesresultinmanylargecompaniesbeingborn.Novel

EnergyDigitalNetworksComputational

BiologySoftwareBiotechPetrochemicalsElectronicsInternalCombustion

EngineAviationChemicalsElectricity190019501990202011Thesemega-waveshavecreatedsome

oftoday’smostvaluablecompaniesandwillformtheMercedes-Benz

invented

the

firstautomobile

in

the

late

19th

centuryApple

pioneeredthe

first

PC

in

the

1970scornerstone

oftomorrow’sDeepTechcanbefoundintheheartofthemostvaluablecompaniesandindustries–fromthetelephone,theinternet,cars,electricitytoaircrafts.Google

developed

the

first

novelalgorithms

in

the

1990s

that

formedGoogle

SearchBioNTech

developed

the

first

mRNAAlmosteverythingusedintoday’sworldhasitsrootsinDeepTech,howeverthese‘deep’technologiesoftenturninto‘traditional’technologiesovertimeastheybecomemorewidespread.vaccines

for

COVID-19

in

202012DeepTechstartupshaveadifferentriskprofilecomparedtotraditional

startupsDevelopmentriskCapital

intensityLongerinitialdevelopmentphaseOftenheavyCapExaheadofrevenuesandPMFDeep

TechTechnologyriskishigher,CapExintensityisoftengreateranddevelopmenttimesaremuchlonger.Team

riskMarket

riskUnlikeregularstartups,DeepTechAcademicandscientificbackgroundsmayhavelesscommercialexperienceIfthetechnologysolvesoneoftheworld’s

biggestproblemstherewillbeampledemandcompanieshaveastrongerdefensibilitymoattowardscompetitionthankstotheircutting-edgetechnologiesattheircore,IPportfolioandteamsoftechnicalexpertise.RegularTechCompetition

riskTechnology

riskOftenthestrongtechnologyedgepreventscompetitionNewtechnologiesdon’talwaysworkasexpected13DevelopmenttimesarelongerCOMMERCIALISATIONDeep

Tech

StartupsDeepTechstartupshavealongerinitialResearch&Developmentphasecomparedtotraditionalstartups,sothetimerequiredtogofromideatomarketisoftenlonger.LongerprototypingphasetomarketreadinessTraditional

StartupsShorttimefromideatoproductdevelopmenttomarketR&DPhaseTIME14Capital

intensityisgreaterRegular

TechDeep

TechDeepTechstartupstakeatleast35%moretimeand48%morecapitalthantraditionalstartupstoreachrevenuelevelsof$5m+,resultinginmorecapitalrequiredtoreachproduct-marketfitandmoredilutionforfoundersandinvestors.Average

years

to

reach

revenue

level

sinceSeed

roundMedian

funding

to

reach

revenue

level$m2.12.02.5$1m2.1Surprisingly,however,theyactuallytakearoundthesameamountoftime(approx.2years)toreachrevenuesof$1m,andonly11%morecapitaltoreach$10mrevenue,suggestingthatthisdiscrepancymaynarrowovertime.+35%+48%2.69.3$5m3.513.82.818.0$10m3.920.015Giventhedifferentriskprofile,DeepTechrequiresanew

approachtoinvestingTeam

risk

is

higherThe

biggestchallengeforDeep

Tech

foundingteamsistocomplementtheirtechnicalabilitieswithbusinessacumenandacommercialmindset.Technology

risk

is

higherBuildingbreakthrough,

noveltechnologieshasinherentlyhigherriskthanusingwellestablishedtechnology.The

advantagetobuildingnewtechnologyisthatitcreatesalotofvalueanddefensibility.Investorsneedtounderstandhowtoassessandperformdiligenceonthehighertechnologyandteamrisks.Competition

risk

is

lowerDuetotheirstrongtechnologicaledgeDeep

Tech

startupshaveadefensiblemoatagainstcompetitors.

For

example,quantumstartupsaredifficulttobuildandrequiretalentthatisscarce.

This

comparestotraditionalstartupswhichrelyonnetworkeffectandmarketdominanceastheirmain

competitiveedge.Market

risk

is

lowerDeep

Tech

startupsrarelyhavecomparableproductsin

themarket

primarilybecausethey’resolvingalargeproblemin

abrand-newway.

Their

underlyingbreakthroughtechnologyunlockshugemarketopportunitiesandoften

createsentirelynewmarkets.

Regardless,

bothDeep

Tech

andtraditionalstartupsrequireproduct-market

fittosucceed,

andDeep

Techstartupsmustavoidthetrapofbecominga

‘technologylooking

foraproblem’.16DeepTechisfar-reachingandspansmanyindustriesandverticalsNOVEL

AIFUTURE

OF

COMPUTESPACE

TECHNOVEL

ENERGYCOMPUTATIONALBIOLOGY

&

CHEMISTRYADVANCEDMATERIALSROBOTICS

&

DRONESOTHERN

O

T

I

N

F

O

C

U

S

I

N

T

HI

S

DO

C

U

M

E

N

T17Successful

VC-backedcompaniescanbe

foundacrosseachDeepTechsub-categoryN

O

V

E

L

A

IF

U

T

U

R

E

O

FC

O

M

P

U

T

ES

P

A

C

E

T

E

C

HN

O

V

E

L

E

N

E

R

G

YCOMPUTATIONALBIOLOGY

&

CHEMISTRYA

D

V

A

N

C

E

DM

A

T

E

R

I

A

L

SR

O

B

O

T

I

C

S

&D

R

O

N

E

SO

T

H

E

RGeneralpurpose

AIQuantumcomputersConnectivitysatellitesNuclearfissionAI-drugdiscoveryGraphenenanotubesproductionSurgicalroboticsAI-enhancedcybersecurityGenAImodelmakerGenAImodelmakerAutonomousdrivingQuantumalgorithmsARhardwareLaunchvehiclesNuclearfusionSupercapacitorsFuelcellsGene-basedmedicinedev.GreenchemicalsBioplasticIntelligentroboticsLab-grownmeatDNAsynthesisGreenSteelAI

solutionsforRoboticsforwarehouseautomationEarthObservationsatellitesSatelliteManufacturinglifesciencesR&DDrugdiscoverymassspectrometryplatformPhotonicIntegratedCircuitsBioplasticRobotprogrammingLidarforroboticsFederatedlearningFullyhomomorphicencryptionExplainableAIDistributedcomputingPhotonicquantumcomputingQuantumcomputersSpacedebrisremovalSpaceexplorationUltra-fastchargingbatteriesNuclearfusionAI-drugdiscoveryAI-drugdiscoveryCarbonutilisationforchemicalsBioplasticIoTembeddedcybersecurityPrecisionfermentationRoboticsforindustrialinspectionIn-space

manufacturingSatelliteimagerySolid-state

batteryBatteryrecyclingAI

andquantumdrugdiscoveryQuantumdrugdiscoveryMycelium-basedmaterialsCarboncapture

xcementCommercialdronesSyntheticbiologyxpharmaUrbanairmobility(eVTOL)FederatedlearningIn-memorycomputingSurgicalroboticsN

O

T

I

N

F

O

C

U

S

I

N

T

H

I

S

D

O

C

U

M

E

N

T18Inthisreport,

wefocusourattentiononsomeofthefastestgrowingDeepTechareasVCinvestment

in

European

emerging

Deep

Tech

startups$bn4.34.2PROJECTED3.7COMPUTATIONALBIOLOGY&

CHEMISTRYNOVEL

ENERGYSPACE

TECH2.1FUTURE

OFCOMPUTE1.11.00.50.4NOVEL

AI20162017201820192020202120222023192.THE

EUROPEANDEEP

TECH

OPPORTUNITY20ManyEuropeanDeepTechsuccesseshavetheirrootsinacademiaSomeofthemostvaluablecompaniesinEuropehavespunoutfromacademia……andmostDeepTechstartupsinEuropeandtheUShavepatentsattheircoreValuable

European

Deep

Tech

spinouts(examples)%

startupswith

patents>$5m

fundingEurope44CompanyCategoryUniversityValuationVCfundingUS40BiotechJohannesGutenbergUniversityMainz$23bn$1.4bnCO?

captureCybersecurityAIBiotechETHZurich$2.2–3.3bn$2.2bn$777m$230m$1.3bn$339m-CambridgeOxford$2.1bn20VRhealthEPFL$1.5bn14SmartsensorsRoboticsETHZurich$1.4bnGerman

AerospaceCenter(DLR)$1.0bn$260mDeep

TechNotDeep

TechSource:

Dealroom.co,

Cipher.ai21StrongEuropeanuniversitiesandresearchinstitutesfosteredthesesuccessstoriesEurope’suniversities

are30%oftopComputerScienceEuropeishometo40%ofthetop10world-classresearch

institutes;institutionsglobally,withUKandSwitzerlandatthetopGermanyandFrancemostprominentduetogreaterpublicfundingComputer

Science

ranking

(THE

2022)Rank

InstituteCountrySizeVisibility

Rich

Files

Scholar123456789NationalInstitutesofHealth172321993361821.

Oxford11.

Imperial

College

London12.

PekingUniversity13.

Tsinghua

(Beijing)14.

CaltechNationalAeronauticsandSpaceAdministrationCentreNational

de

laRecherche

Scientifique

CNRSMax

Planck

Gesellschaft2.

Stanford23453231212543.

MIT44.

ETHZurich4.

Cambridge6.

CMUChineseAcademyofSciencesCAS

中國科學院CentersforDiseaseControlandPreventionUS

DepartmentofVeteransAffairs59328561122155115.

TUMunich73427531560616.

SingaporeNanyang17.

UniversityofWashington18.

CornellConsejoSuperior

de

Investigaciones

Cientificas

CSICNationalOceanicandAtmosphericAdministration263067.

Harvard6898.

Berkeley10

ConsiglioNazionale

delle

Ricerche

CNR11

LawrenceBerkeleyNationalLaboratory12

SmithsonianInstitution22375626111214323888.

NationalUniversityofSingapore10.

Princeton19.

PekingUniversity20.

EPFL(Lausanne)217166832735151508143132211624833613182387113

US

GeologicalSurvey25Engineering

ranking

(THE

2022)14

NationalInstitute

ofStandardsandTechnology15

CommonwealthScientificandIndustrialResearchOrganization16

Karlsruher

Institut

für

Technologie17

US

EnvironmentalProtectionAgency42201.

Harvard11.

UniversityofCalifornia12.

PekingUniversity15192.

Stanford3.

Berkeley13.

Imperial

College

London14.

Georgia

Tech18

Intitut

National

de

Recherche

enInformatique

et

enAutomatique19

Intitut

National

de

laSanté

et

de

laRecherche

Médicale20

Argonne

NationalLaboratory311081622409062518368431755446281211111074.

MIT5.

Cambridge6.

Oxford15.

SingaporeNanyang16.

Yale48546740242621

OakRidgeNationalLaboratory7.

Princeton17.

Tsinghua

(Beijing)22

Fraunhofer

Gesellschaft8.

Caltech18.

CarnegieMellonUniversity19.

EPFL(Lausanne)20.

UniversityofMichigan-AnnArbor23

IstitutoNazionale

di

FisicaNucleare24

UniversityofTexasM.D.AndersonCancerCenter25

SloanKetteringMemorialCancerCenter9.

ETHZurich10.

NationalUniversityofSingapore46Source:

Dealroom.co;

22WithinEurope,

UKinstitutionsshow

thehighestDeepTechpatentactivity

–However,manyofwhichremaininactiveMostof

Europe’spatentsremaininactiveandneverfindtheirwayintocompaniesandproductsPatent

activityacross

European

universitiesActive

patentsheld

bytop

Europeanuniversities

bycountryCatholicUniversityLeuven7.3%5.3%UK579UniversityofOxfordGermany418TechnischeUniversitatDresden5.1%4.7%4.5%4.5%France32195%EcolePolytechniqueFederaledeLausanneBelgiumSwitzerlandNetherlandsRest223198151ofexistingpatentsin

EuropeUniversityofCambridgeUniversityofLondonNext49areinactive168.6%551.

Source:

EuropeanDeepTechAllianceSource:

Dealroom.co,

Cipher.ai23Certainpatentcategoriesareascending,

whileothersarelaggingbehindPatent

growth

since

2016

in

Europe

(normalisedto100foreach

categoryin

2016)800Machine

LearningThepatentlandscapeisalsoareflectionofpublicinterestandmacro-trends.6004002000Sometechnologies,likeMachineLearning,areonacontinuousupwardtrendandareexpectedtoremainathighlevels.Sometechnologies,likeBlockchain,havecooledoff,drivenbyunfavourablemacroenvironments.LidarSometechnologies,likeNuclear,sufferfromnegativepublicsentimentincertaincountries.BlockchainRoboticsBatteriesAR/

VRSemiconductorsAllpatentsNuclear2016201720182019202020212022Source:

Dealroom.co,

Cipher.ai24Europemustactasone

continenttoremaincompetitiveonaglobal

levelResearchcooperationsignificantlycontributestoEuropeanpatentsuccess,andthefieldof‘health’canserveastheblueprintforotherareasEuroperankssecondbehindtheUSinmanyfrontiertechnologies.Toreapthebenefitsofthisresearch,EuropeneedstoactasonecontinentShares

ofworld-class

patentswith

researchesfrom

at

least

two

EU

statesShares

ofworld-class

patentsin

frontier

technologiesbytechnology,

2019DiseasesVaccinesBiocides26%25%0.8x0.6x0.3x0.3x0.3x0.4x0.8x1.0x0.8x

Ratio

Europe/US597Restof

World111113131717132415231424%58281233RestofEast

AsiaGentech23%FunctionalmaterialsChina23%122741RestofNA56Greenbiotech21%5314282731474234USAPrecisionmedicine20%20%20%RestofEuropeEurope3015G33252122181916PhotovoltaicsFertilizerNext-levelautomation

ConnectivityFutureofDistributedInfraNext-gencomputingAppliedAITrustBioNext-genMaterialsFutureofCleantech17%architecutre

Revolution1.

Europe30:

27MemberStatesofEuropeanUnionplusNorway,Switzerland,andUK.Source(left):

BertelsmanStiftung,

McKinseyGlobalInstitute-

Addressingthe

EuropeanTechnologyGap.Note:

Data

forfuture

ofprogrammingnotavailable.Data

labels<5notshown.Countriesareidentifiedbythe

addressofthe

patentholder(s).25Source(right):

BertelsmanStudy“Worldclasspatentsincutting-edge

technologies”ETH,OxfordandCambridgehavethehighestuniversityspinoutvalue;UKleadinginEuropewith2xthespinoutvaluecreatedcomparedtoGermanyEuropean

universities

which

created

most

Deep

Tech

spinout

value1European

countrieswhich

created

most

Deep

Tech

spinout

value1(Pre-)Seedstartups(x2)SeriesA+startups(x10)Futureunicorns(x30)Unicorns(x100)(Pre-)Seedstartups(x2)SeriesA+startups(x10)Futureunicorns(x30)Unicorns(x100)ETHZurich734708UnitedKingdomGermanySwitzerlandNetherlandsFrance2,364UniversityofOxfordUniversityofCambridgeTechnicalUniversityMunichSwissFederalInstituteofTechnologyLausanneImperialCollegeLondonUniversityCollegeLondonInstitutPasteurEindhovenUniversityofTechnology(TU/e)FraunhoferSocietyUniversityofDundeeGermanAerospaceCenterAaltoUniversityUppsalaUniversityGhentUniversityJohannesGutenbergUniversityMainzKULeuven1,1911,181510410345504378268190171170168Sweden337BelgiumSpain301134114241228183Finland11011010210097ItalyAustriaNorwayPortugalEstonia77484334KTHRoyalInstituteofTechnologyUniversityofEdinburghUniversityofBristol969389UniversityofZürich851.

Universityvaluecreationisrankedbymultiplyingthe

numberofstartupsateverystage

ofmaturityfora

score

2foraVC-backedstartupto100foraunicorn.

Spinoutspoliciesvaryfromcountrytocountry.

CountrieslikeFranceandSwedenarehardtocompare

due

tothe

professorprivilegemodel,

whereuniversitieshavenostakeinanyresearchinnovationcomingoutofthe

activitiescarriedoutthere.

ThedefinitionofspinoutsandtheircomparisonwithothercountrieslikeUK,

GermanyandSwitzerlandisthereforechallenging.SomeuniversitiessuchasKTHcollaboratedinsharingdetaileddataforafaircomparison.

Therankingmightevolvewithbetterinvolvementofmore

universities.26Europehasnotonlystrongtechnicaltalent,butalsorankshighlyasanattractivelocation;thereistalentreadytotakethepatentsoutofthelabtothemarketEuropeisnotonlyhometotalentedtechnicalgraduates……butisalsoregardedasoneofthemostattractiveregionstoworkinGraduates

from

STEMprograms

in

tertiaryeducation,

20181Share

ofpeoplewilling

to

moveto

thefollowing

countriesfor

work3TotalthousandPer

million

inhabitants

Share

oftotalgraduatesthousandUS34%%GermanyCanadaAustraliaUK26%24%China2EuropeUS4,7003.44821%20%1,0322.026Spain14%14%6151.921FranceSwitzerlandItalyS.Korea

1342.63013%11%10%Israel151.718Japan1.

InternationalStandardClassificationofEducation,

2011,

level6-8.2.

Latestavailabledata

forChina

limitedto2016.3.

Jan-Apr2018,

n=

366,139employeesandjobseekersin197countries.Source:OECD;NationalScienceBoard,UnitedStates;WorldEconomicForum;

McKinseyGlobalInstituteanalysis.BostonConsultingGroupviaStatista27“PublicsupportforDeepTechisatanall-timehighEuropeneedstobeaglobal

leaderwhenitcomestoinvestinginnovel

DeepTechnologies,especiallyonesthatwillimpactoursovereigntyanddefence.EUprogramsEIFEuropeanInvestmentFundisHorizon

EuropethemainLPinmostEuropeanDeepTechfunds,providingnearly40%ofthecapitalallocation.EU’skeyfundingprogramforresearchandinnovationwithabudgetof?95.5bntoEuropeaninnovators2021-2027.EICFundEITInnoEnergyEuropean

Tech

Champion

InitiativeProvidedmorethan1.6kgrantstotallingover$1.7bninsupportofEuropeanDeepTechstartupssince2016.OneofthemostactiveinvestorsinEnergyinEurope,supportedbytheEuropeanInstituteofTheETCIisafund-of-fundsstructurewith?3.75bntotackletheEuropeanscale-upgap.LaunchedwithEIBGroupresourcesandcontributionsfromGermany,France,Spain,ItalyandBelgium.Expectingtoinvestin10-15largeVCfundsofapprox.?1bnandmobiliseover?10bnofgrowthstagefinancing(focusonhigh-techcompaniesraisingover?50m).InnovationandTechnology(EIT).NoneofthiscanbedonewithoutasignificantincreaseingrowthstagefinancinginEurope.NATO

Innovation

Fund(NIF)JEDI?1bnVCfundsupportingdisruptivetechnologiestoguaranteethesecurityoftheAlliance’s1bncitizens.“TheEuropeanDARPA”aimstohand?50mand?100minannualchallengegrants.Europe’sdigitalandtechnologicalsovereigntydependson