Europe’s deeptech sector surged in 2025, set to attract about EUR 16 billion in venture capital – nearly a third of all European VC funding – despite broader market challenges. London, Paris, Munich, Oxford, and ETH Zurich grew the most in Europe, with the UK alone raising EUR 4.2 billion. Startups in AI, quantum computing, and biotech are at the forefront driving high levels of investment and demand for specialised operational support.
The growth reflects a shift in how Europe approaches technology investment. Public markets remain cautious, and venture funding has grown more selective, which has pushed deep tech into focus for investors prioritising long-term outcomes over short-term cycles. Companies in this sector often face extended development timelines, regulatory exposure, and capital-intensive operations. That environment has increased demand for investors who contribute operational experience and market insight alongside funding, particularly in areas where commercial launch carries structural risk.
Builder-investors
At the centre of this renaissance are “builder-investors,” venture leaders who combine capital with hands-on guidance. Alexander Kopylkov is one such investor, with more than 20 years’ experience across engineering, real estate, and venture capital. That experience informs his approach to helping founders bring technically complex ideas to market.
“Funding is critical, but it’s only one part of the picture,” says Kopylkov. “Entrepreneurs also need guidance on how to deal with operational issues, enter the market and navigate regulatory barriers. We partner with founders to develop their strategies, scale their operations, and help them get ready for high-value exits.”
Over the past decade, Kopylkov has backed more than 20 European startups in AI, deeptech, and breakthrough innovations. His hands-on support has helped portfolio companies to reach valuations in the multi-million-euro range, and achieve annual revenue growth between 30 and 50 percent. Analysts see investor-operators like Kopylkov as integral to addressing Europe’s scale-up gap where there is a lot of early-stage funding, but a lack of growth capital and strategic mentorship for startups.
The funding trends for 2025
The funding trends for 2025 highlight this gap. AI startup companies received EUR 3 billion in investment, which represents a 113 percent increase from the prior year, attributable to synthetic biology, AI-based drug discovery, and quantum technologies. Germany’s deeptech funding rose around 29 percent, while Ireland’s tech sector secured EUR 634 million in Q1. A significant share of growth capital – around half – came from non-EU investors, underscoring persistent fragmentation in European markets.
Hands-on strategists are helping bridge that divide. Investor funds such as IQ Capital and Supernova Invest are set up to back startups with strong intellectual property and offer follow-on support of up to GBP 30 million (around EUR 34 million), while Merantix Capital uses domain experts to help university spinouts commercialise their technology.
Technology investments
Kopylkov believes investment in disruptive technology sectors such as AI-based drug discovery, semiconductors, advanced materials, and energy transition solutions will continue to increase over the next several years. The STEP Scale-Up programme from the European Innovation Council is projected to expand from EUR 350 million to EUR 900 million by 2027, specifically supporting the scaling-up of innovative technologies.
Kopylkov’s engineering-to-management background allows him to guide startups through both technical complexity and operational hurdles. “I see myself as a bridge between invention and impact,” he says. “Our goal is to take innovations from labs into the market, where they can make a tangible difference.”
As Europe’s deeptech ecosystem matures, builder-investors like Kopylkov are proving indispensable. By combining capital, strategic insight, and operational mentorship, they help startups navigate fragmented markets, slow tech transfer, and regulatory hurdles. For Europe’s ambitious innovators, access to this kind of hands-on guidance can mean the difference between a promising idea and a market-leading company.
