Universities and research laboratories have long been the treasure trove of Europe’s deep technology. Now, academic spinouts have consolidated into a steady pipeline of $398 billion worth of startups — and VC money is following.
According to Dealroom’s European Spinout Report 202576 of these deep tech and life sciences companies have either reached $1 billion in valuations, $100 million in revenue, or both. These include unicorns such as Iceye, IQM, Isar Aerospace, Synthesia and Tekever, which are now inspiring more capital to support university spinouts.
Just this month, two new funds emerged that will bring more funding to emerging talent from European tech universities, adding breadth to a pipeline currently topped by Cambridge, Oxford and ETH Zurich.
PSV Hafniumout of Denmark, recently closed its 60 million euro (about $71 million) overcapped seed fund, with a focus on Nordic deep tech. With offices in Berlin and London, but also in Aachen, U2V (University2Ventures) is targeting the same amount for its first fund, of which recently completed the first close.
These two newcomers join the growing ranks of European venture firms that have university presences as a key part of their investment thesis. Pioneered by companies such as Cambridge Innovation Capital and Oxford Science Enterprises, which are now fully matured, this category has also diversified.
While it still consists primarily of funds backed by one or more universities and foundations, it now includes independent companies that simply see spinouts as potential capital returns — and rightfully so. Oxford Ionics, acquired by US-based IonQit was one of six spinouts from Switzerland, the UK and Germany that provided more than $1 billion in exits to their investors in 2025.
These exits are accompanied by increased funding amounts. According to Dealroom, European universities in deep technology and life sciences are on track to raise nearly $9.1 billion all-time in 2025. This contrasts with overall VC funding in Europe, which has declined by nearly 50% since its peak in 2021.
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Large rounds closed in 2025 also reflect appetite for spinouts in areas as diverse as nuclear power — Proxima Fusion — and dual-use drones — Quantum Systems, now valued at over $3 billion. In many cases, these startups leverage research from specialized labs, which also explains why there is a long queue of European locations capable of producing spinouts.
Building relationships with hubs outside of Oxbridge and leading countries can also be a way for newcomers to diversify and find deals. “Scandinavian research institutions have outstanding, untapped potential,” the PSV Hafnium partners said in a press release.
PSV Hafnium itself originates from the Technical University of Denmark (DTU), but also makes early-stage investments in other Nordic countries. One of his nine checks to date went to SisuSemia Finnish startup leveraging a decade of research at the University of Turku to bring new surface cleaning technology to the semiconductor industry.
It is good news for groups like SisuSemi that there is more funding available to them. It also comes in addition to grants, commercialization support and improved terms of agreement that contribute to an enabling environment for young people in Europe. However, one pain point remains: growth capital.
As the report’s authors note, this gap “is not a unique trend in spinouts, but something that affects the entire startup ecosystem in Europe.” However, it is very striking that almost 50% of late-stage funding for European deep-tech and life sciences comes from outside Europe, mainly the US
Although this share has declined over the years, Europe will not reap the full benefits of its investment in talent and research unless this changes more substantially — but that is a broader issue that needs to be addressed.
