In this interview with Alexander Vaselek, CEO of Frankfurt-based early-stage start-up investor Cimedo Investment Group, we explore the evolving landscape of deeptech VC investments across Europe and the Mediterranean. With a growing ecosystem supported by government initiatives and private capital, this region is positioning itself as a key player in areas like AI, biotech, quantum computing, and robotics. While still trailing the U.S. in size and risk appetite, Europe is closing the gap by focusing on sustainability and long-term innovation. Our guest delves into the unique challenges facing deeptech startups, the sectors attracting the most investor attention, and what the future holds for this exciting field.
Alexander will be sharing the stage at the upcoming 0100 Conference Mediterranean in Milan in October at the “Deeptech Investments” panel, together with Maria Cristina Odasso at LIFTT, Stephan Wirries, Partner at Ventech, and Moritz Belling, Principal at Earlybird Venture Capital.
The deeptech investment landscape in Europe and the Mediterranean is really gaining momentum. Over the past few years, we’ve seen significant growth. That’s still smaller than the U.S., but the upward trend is clear.
One of the big drivers in Europe has been government support. Programs like Horizon Europe and national initiatives in countries like France and Germany are pouring funds into deeptech sectors, particularly those aligned with sustainability and societal impact, like clean energy and health tech. Southern Europe is still developing but showing potential.
When you compare this to the U.S., though, it’s a different ball game. The U.S. has a much larger deeptech ecosystem. U.S. investors also tend to take bigger risks at earlier stages, and the private sector (through corporate VCs and agencies like DARPA) plays a more dominant role. That leads to faster scaling and more exit opportunities, which is still a challenge in Europe.
I think it’s fair to call deeptech a trend, but it’s not a fleeting one, it’s here to stay. The promise of deeptech lies in its potential to solve some of the most complex global challenges, whether it’s climate change, healthcare, or energy. That said, deeptech does tend to have longer development cycles, which means that right now, many of the technologies are still in the early stages of the hype cycle. Investors are beginning to see the value, but because the timelines are long, there’s still a gap between the hype and actual widespread adoption. We’re at the stage where the foundational work is being laid, but it’s going to take a bit more time before we hit that peak of realization.
Early-stage deeptech startups face several unique challenges, primarily around funding and the extended time it takes to bring their innovations to market. Unlike other tech startups that can scale quickly, deeptech requires more patient capital and investors who understand that breakthroughs take time. These startups also often need to bridge the gap between scientific research and commercial viability, which can be a difficult balancing act.
At Cimedo, we focus on providing not just capital but also strategic support. We help startups by connecting them with industry experts, research institutions, and corporate partners, which is critical in deeptech. Additionally, we understand the long-term nature of deeptech development, so we offer flexible funding models and work closely with our portfolio companies to refine their go-to-market strategies. It’s about more than just money, it’s about giving them the ecosystem they need to succeed in the long run.
Right now, AI and biotech are definitely leading the way in Europe and the Mediterranean in terms of attracting investor interest. AI is being integrated across almost every sector, from healthcare to finance, which makes it a hot area for deeptech VCs. Biotech, especially in areas like genomics, personalized medicine, and drug discovery, is also seeing strong growth. Quantum computing is still in the earlier stages but is starting to attract attention as companies are making breakthroughs in hardware and applications. Robotics, particularly in industrial automation and healthcare, is another sector that’s gaining momentum, especially in key European markets like Germany and France.
The VC ecosystem in Europe and the Mediterranean is definitely evolving to better support deeptech. We’re seeing more specialized deeptech funds emerge, and generalist VCs are also starting to invest in deeptech because they see the potential for long-term returns. On top of that, government initiatives are playing a crucial role. The European Innovation Council, for example, is investing heavily in deeptech through grants and equity funding, which helps mitigate some of the risks that private investors might shy away from.
In southern Europe, while things are developing more slowly, we’re starting to see national governments and the EU funnel more resources into deeptech as they realize the strategic importance of these technologies. The collaboration between government funding and private capital is key to creating a robust environment where deeptech startups can thrive.
I believe the future of deeptech VC investment in Europe and the Mediterranean is very promising. Over the next few years, we’re going to see more capital flowing into this space, especially as investors get more comfortable with the longer timelines and the potential for massive returns. AI and biotech will continue to dominate, but I also think sectors like quantum computing, green energy, and space technology will drive the next wave of innovation. Europe is putting a big focus on sustainability, so we’ll likely see a surge in investment around clean technologies, energy storage, and carbon capture.
Additionally, I expect to see more collaboration between governments and private investors, which will be crucial for scaling deeptech startups. As the ecosystem matures, Europe and the Mediterranean will play a leading role in developing technologies that address global challenges, and that will position the region as a key player in the deeptech world.
At our latest 0100 Conference Mediterranean, we gathered experts from Lombardy’s investment ecosystem, including Andrea Beretta of Cariplo Factory, Gessyca Golia from the Lombardy Region, and moderator Fiorenza Lipparini of Milano & Partners, to discuss the unique appeal of Milan for venture capital (VC) and private equity (PE) investments.
The 0100 Conference Mediterranean Fireside Chat: VC Secondaries – the Market Opportunity and Ways to Select the Right Fund highlighted its unique potential for investors seeking more liquidity and quicker returns. This session featured Nick Hendra from AAF Management, Matt Russell from Vencap, and Luca Mannucci from Sella Venture Partners, who shared insights on the market dynamics of VC secondaries, effective fund selection, and key strategies for mitigating risk while maximizing returns.
LP panels are essential at every conference, especially as fundraising becomes increasingly competitive and challenging. One of the highlights at the 0100 Conference Mediterranean was the panel titled “Attracting LP Investors Outside the Region: Interest in the Regional PE/VC Market from Global Institutional Investors.” In this session, key investors shared insights into the growing global interest in private equity and venture capital markets within the Mediterranean and Southern Europe. Moderated by Francesco Cerruti, Director General of the Italian Tech Alliance, the panel brought together leading figures in the industry, including Emre Karabekirogullari, Director of Investments at Sarona AM; Patrick Aisher, Chairman of Kinled Holding; Benno Tieke, Director of Portfolio Management at Philips Ventures; and Veera Somersalmi, Director of Investor Relations at Bpifrance.
