European deep tech startups are attracting significant venture capital investment, with several companies positioned to achieve unicorn status in 2026 across sectors including fusion energy, gene therapy, and biotechnology. The continent is challenging U.S. dominance in producing globally competitive technology companies.
Notable European Deep Tech Funding
- Proxima Fusion: €200M total (stellarator fusion tech)
- AAVantgarde Bio: $141M Series B (gene therapy)
- Indian startups H1 2025: $5.7B across 470 deals
- Rising hubs: Berlin, Paris, Stockholm, Barcelona
- Global ranking: Beijing #5, Shanghai #10
Fusion and Biotech Lead the Way
Proxima Fusion, developing stellarator nuclear fusion technology, completed a €130 million Series A funding round in June 2025 co-led by Cherry Ventures and Balderton Capital. The company extended its round with an additional €15 million from Italian state fund CDP Venture Capital and the European Innovation Council Fund, bringing total funding to €200 million.
Copenhagen-based Hemab Therapeutics is developing prophylactic therapies for serious bleeding and thrombotic disorders. AAVantgarde Bio, a Milan-based clinical-stage biopharmaceutical company, completed a $141 million Series B financing round led by Schroders Capital, Atlas Venture, and Forbion to advance next-generation gene therapies for inherited retinal diseases.
European Hubs Rising
Berlin, Paris, and Stockholm continue to climb in global startup rankings, producing new unicorns despite some experiencing slight dips in specific metrics. Barcelona and Philadelphia have emerged as rising hubs attracting talent and capital. London remains Europe's top ecosystem but slipped from second to third globally in 2025 due to a slower exit environment.
Asia-Pacific Competition Intensifies
Startup Genome's latest rankings show Asia-Pacific hubs rising strongly, with Beijing climbing to fifth globally and Shanghai reaching tenth. Bengaluru jumped seven spots to fourteenth, while Shenzhen leapt eleven spots to seventeenth, reflecting growing competitiveness of Indian and Chinese ecosystems beyond traditional centers.
Indian startups raised around $5.7 billion in the first half of 2025 across approximately 470 deals, placing India as the third-largest funded country after the U.S. Fintech and enterprise SaaS have led India's venture capital resurgence, with Bangalore's ecosystem minting new unicorns and attracting overseas investors.
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