Ever feel like building a deep tech start-up is a bit like starring in your own epic saga? Imagine, you’re Beowulf (Deep Tech founder), armed with a PhD and a prototype, standing at the edge of the dreadful valley of death (this is the part where you’re struggling to break-even after your Series A funding). Ahead? Three beasts blocking your path: Funding the Greedy, Regulation the Twisted, and Traction the Elusive. What do you do?

Fast-forward from myth to modern-day reality. Scaling a deep tech start-up in the United States can look a lot easier than in Europe. The funding rounds are bigger, exits are more frequent, and investors are more comfortable betting big on complex technologies. On this side of the Atlantic, the average Series B raised is far more modest due to late-stage funds in Europe being limited in size and number. Which makes it so much more complicated for European start-ups  to close the bigger rounds needed to scale infrastructure, manufacturing, or global operations.

As we mentioned in Part 1 of the Crossing the Valley of Death series, even standout start-ups like Alice & Bob or Pasqal, each raising €100 million, are still rare. The typical European round sits well below that, with many strong contenders stuck trying to bridge the funding gap between R&D success and industrial scale.

But here’s the thing: you don’t have to leave Europe to scale successfully.

The good news? According to the 2025 European Deep Tech Report by Lakestar, Walden Catalyst, Dealroom and Hello Tomorrow, €15 billion was invested in European deep tech start-ups in 2024, proving that interest is growing. Successful fundraising is happening. The landscape is changing, and there’s a growing set of strategies, tools, and mindset shifts that can help you stay in Europe and still build globally competitive ventures. The trick lies in finding the right key for the right lock: from embracing blended finance to collaborating strategically with corporates and tapping into government-backed resources. 

We’ve turned the insights from the European Innovation Council, L’Oréal, Techleap, and Kvanted Ventures into a founder-friendly guide below:

Your practical checklist to grow a deep tech start-up in an opportunity-rich Europe

The path to getting your deep tech start-up to Series B in Europe isn’t simple but it’s far from impossible. Between fragmented regulation, limited late-stage capital, and slower corporate adoption, the barriers are real. But so are the tools, support programmes, and strategic partners ready to help you grow. Here’s your checklist for scaling your deep tech start-up in Europe without moving abroad.

1. Know what scaling means for your business

As a Deep Tech founder, before jumping into growth mode, get clear on what “scaling” means in your industry. Don’t scale for the sake of it. Ask yourself these questions:

-Have you proven your core technology works at lab and pilot scale?

-Can you demonstrate demand from customers or partners, beyond interest or pilots?

-Have you identified the infrastructure or resources needed to deliver at scale?

2. Rethink your funding strategy

European late-stage funding is still catching up but it is evolving, so plan ahead and stay flexible. Consider diversifying your funding sources by combining public funding with private capital to reduce risk, by looking into:

-Grants,

-Public funding, incl. government-backed programmes (e.g. EIC Accelerator, national R&D agencies),

-VCs (without forgetting to build relationships with growth-stage investors before you need them!),

-Family offices, as well as

-Project and revenue-based finance, as well as investment entities or initiatives that are funded, supported, or sponsored by a corporation.

3. Don’t underestimate the regulatory obstacles

Before we tackle the elephant in the room, it’s important to understand how EU legislation typically works. Much of it comes in the form of directives, which set goals for member states but allow them flexibility in how they transpose them into national law, sometimes even at a regional level. The result? A fragmented patchwork of rules across the EU.

Regulations, by contrast, are directly applicable and uniformly enforced across all Member States, offering much-needed consistency for cross-border businesses.

To address this complexity, the European Commission recently launched the EU start-up and Scaleup Strategy. A key part of this effort is a new directive aimed at supporting start-ups throughout their lifecycle, from starting up to scaling up to maturing and succeeding here in the EU.

👉 Read more about the new strategy here.

So, if you’re working at the edge of innovation, whether in energy, biotech, or digital technologies, here are the three realities you’d need to keep in mind: 

-Don’t anchor your business model around regulation
Regulatory change takes time. If your success hinges on future policy shifts like those supporting bio-based materials or renewable energy you risk running out of time and money before change arrives.

Waiting for the regulatory framework to catch up with innovation is, quite frankly, a losing strategy,” Van Oranje shared. “Policy changes, especially those related to energy transitions or the bio-based economy, often take too long to materialise. In the meantime, start-ups and companies risk running out of time and capital.”

 

-Treat regulation as a strategic factor
Instead of waiting for the rules to change in your favor, focus on adapting to the current landscape. Deep tech companies that learn to work within (or ahead of) regulation can turn it into a competitive advantage.

-Be proactive and push for innovation-friendly policymaking
When new rules are being made, governments often look at how they will affect society and the environment. But they don’t usually think about how the rules might affect innovation. That’s why it’s important to speak up and suggest doing an “innovation test”, which is a check to see if the rules could unintentionally slow down or block new ideas and progress. Engage with policymakers early on. You must participate in consultations, and build coalitions that can influence smarter, more adaptive regulations.

4.  Maintain a flexible and inclusive approach

Europe is a mosaic of markets, but scaling here means building with agility.

-Start by crafting flexible go-to-market plans that reflect local needs and regulations

-Collaborate with regional champions to navigate and integrate into local supply chains

-Engage with innovation ecosystems such as Hello Tomorrow, EIC, and national hubs

-Take advantage of EU initiatives that enable cross-border collaboration and market entry (check out the EIC Scaling Club).

5. Strengthen your team & governance

As the wise saying goes, “If you want to go fast, go alone; but if you want to go far, go together.” Deep tech founders can’t scale alone. You must surround yourself with industry expertise and a team of strategic advisors.

-Bring in independent advisors and board members with scale-up experience

-Hire ahead of your current stage, especially in operations, manufacturing, and compliance

-Build a strong internal culture as you grow your team

-Create feedback loops between your technical and commercial teams

-Set clear metrics for scale-readiness (technical, financial, and organisational)

6. Rethink how you collaborate with corporate partners

Corporates can, in fact, be powerful allies in scaling deep tech, but only if the start-up’s  management team pushes for meaningful, win-win relationships. Fabien Deswarte, Head of Strategic Partnerships at L’Oréal, urged start-ups to be bolder: “Too often, start-ups don’t ask enough. Ask what success looks like. Ask how big the opportunity really is.” he said.

-Make sure your solution solves a top strategic priority, not a “nice-to-have”

-Ask tough questions: What does success look like? What’s the budget? Who decides?

-Don’t be afraid to walk away from pilots with no clear path to scale

-Look for co-development, procurement, or investment opportunities

-Don’t overlook the existing platforms, such as the EIC Corporate Partnership Programme, to access real decision-makers

To the last point, but not necessarily the least:

7. Don’t wait to do the numbers

Too many start-ups delay serious technical-economic thinking, but the truth is, having great technology is not enough, you must prove it can be a great business too. 

Ever watched Dragon’s Den or Shark Tank? Entrepreneurs with the most exciting products often lose investor interest the moment they can’t answer basic questions about costs, margins, or scalability. Investors want more than a big idea, they want proof that it can make money.

-Carry out a technical and economic feasibility analysis early on to assess if your innovation can realistically scale.

-Identify your cost drivers, break-even points, and potential pricing models

-Show partners and investors a credible path to profitability

-Use this data to prioritise product versions, target customers, and scale-up plans

-Update your assumptions as you get real-world feedback

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