Universities and research laboratories have long been a goldmine for deep tech innovation in Europe. Now, academic spinouts have grown into a robust startup pipeline valued at $398 billion, attracting the attention of venture capitalists.
According to Dealroom’s European Spinout Report 2025, 76 deep tech and life sciences companies have hit $1 billion valuations, $100 million in revenue, or both. Notable unicorns, including Iceye, IQM, Isar Aerospace, Synthesia, and Tekever, are paving the way for more funding to support university spinouts.
Recently, two new funds emerged, promising additional financial support for talent from European tech universities, further expanding a pipeline already dominated by institutions like Cambridge, Oxford, and ETH Zurich.
PSV Hafnium, based in Denmark, recently wrapped up its first fund with an impressive oversubscribed amount of €60 million (around $71 million), focusing on Nordic deep tech. Additionally, U2V (University2Ventures), with offices in Berlin, London, and Aachen, is targeting a similar amount for their first fund, having already completed its initial closing.
These newcomers are joining a growing network of European venture firms that prioritize investments in university spinouts. The trend, initiated by firms like Cambridge Innovation Capital and Oxford Science Enterprises, which have now matured, has also expanded. While many funds are still linked to universities, independent firms are increasingly recognizing the potential for substantial returns from spinouts. For instance, Oxford Ionics, which was acquired by U.S.-based IonQ, was one of the six spinouts from Switzerland, the U.K., and Germany that achieved exits exceeding $1 billion in investor returns in 2025.
These exits are occurring alongside a surge in funding. Dealroom reports that European university spinouts in deep tech and life sciences are set to raise nearly an all-time high of $9.1 billion in 2025. This contrasts with the overall venture capital funding in Europe, which has fallen nearly 50% since its peak in 2021.
Significant funding rounds in 2025 showcase the strong interest in spinouts, spanning sectors such as nuclear energy—like Proxima Fusion—and dual-use drones—such as Quantum Systems, now valued at over $3 billion. Many of these startups are capitalizing on research from specialized labs, contributing to a diverse range of European locations capable of generating spinouts.
Establishing connections with hubs outside traditional powerhouses like Oxbridge can provide new entrants with a competitive edge in deal-making. “The Nordic’s research institutions hold extraordinary, untapped potential,” stated partners from PSV Hafnium in a press release.
PSV Hafnium itself is a spinout from the Technical University of Denmark (DTU) and is actively investing in other Nordic countries. One of its nine investments so far has gone to SisuSemi, a Finnish startup that is transforming surface cleaning technology in the semiconductor industry based on a decade of research at the University of Turku.
Increased funding availability is a positive development for teams like SisuSemi, complementing grants, commercialization support, and enhanced deal terms that foster a supportive environment for Europe’s spinouts. However, a significant hurdle remains: access to growth capital.
As the report’s authors highlight, this challenge “is not unique to spinouts but affects the entire startup ecosystem in Europe.” It’s particularly notable that nearly half of the late-stage funding for European deep tech and life sciences spinouts comes from outside Europe, primarily from the U.S.
While this proportion has declined over the years, Europe won’t fully benefit from its investments in talent and research without a substantial change to this trend—an issue that requires broader solutions.
