Latest news with #deeptech
Yahoo
a day ago
- Business
- Yahoo
Where the smart money went: Spring 2025's lessons for European VC sector
Spring 2025 marks a turning point for the European venture capital market: the turbulence of previous years is giving way to a search for new points of stability. On the surface, the overall volume of investments has held steady at around $12–13 billion for Q1, but the logic of deals and investor priorities has clearly shifted. There are fewer rounds, average check sizes have grown, and both startups and founders now face much higher standards. In this article, I outline the key trends of the spring season, analyse where the money is actually going, which segments are attracting the attention of major and niche funds, and what this means for the market, LPs, GPs, and founders. I explain why infrastructure, deep tech, and B2B have come into focus—and which previously hyped sectors are now being left behind. This perspective aims to understand how the market is building new foundations after the 'easy money' era, how the strategies of leading players are evolving, and which scenarios are becoming most likely for the second half of the year. In spring 2025, European venture capital has taken a deliberate step away from chasing the next big platform for everyone. Instead, investors are channelling capital into start-ups that own one specific pain point—and solve it better than anyone else. This change is most visible in the priorities of leading funds. When Cathay Innovation launched its $1B fund this spring, it made clear: that the capital would flow only into vertical AI applications, such as healthcare diagnostics, financial automation, or energy optimisation. The era of 'AI for everything' is over; now, investors want AI for something real. Smartfin, too, repositioned itself strictly as a backer of B2B infrastructure scale-ups, while Cherry Ventures doubled down on single-solution early-stage bets in key European hubs. Investment rounds echo the same shift. Isomorphic Labs raised €556M for AI-driven drug discovery, not a generic platform. Rapyd's €474M round was all about expertise in the toughest corner of payments compliance. Even Reneo's €600M in climate tech was grounded in focused, technical innovation. Why does this matter? Because LPs have grown tired of stories and scale for scale's sake. They want evidence: deep product-market fit, visible technical advantage, and a defensible moat. At Zubr Capital, we see this as a healthy correction. The winners will be those who choose depth over spread—delivering mastery in one vertical, not chasing every market at once. This spring, European venture capital has drawn a clear line: the era of quick-to-market wrappers and surface-level 'innovation' is over. Investors are backing startups that build true technology—from the ground up—with substantial engineering and proprietary IP at their core. The distinction is sharp. Isomorphic Labs, a UK spinout from DeepMind, raised €556m not for a generic AI platform, but for a domain-specific stack in drug discovery: new algorithms, unique data pipelines, and technical depth rooted in biology and chemistry. Investors are no longer satisfied with startups layering a pretty interface on public models—they want hard science and engineering. The same is true beyond AI. Sweden's Neko Health secured $260 million by combining proprietary hardware, sensors, and software for preventive diagnostics—redefining early health screening by building every layer in-house. France's Loft Orbital became a unicorn not by selling vision, but by delivering engineering: modular satellite buses, custom mission software, and reliable payload integration. Their latest funding will scale working infrastructure, not just prototypes. Even in creative AI, substance wins. Synthesia's $180 million round is about advancing proprietary technology for avatar and voice generation—no reliance on off-the-shelf models, but a real R&D engine. And while Quantum Motion (UK) hasn't raised a headline round this spring, its pursuit of silicon-based quantum processors—rooted in physics, not hype—demonstrates the kind of depth investors now prize. The signal is clear: capital is flowing to teams that deliver real, defensible technology. For founders, engineering depth and original IP are now the strongest currency in the European market. Spring 2025 has brought a new level of discipline to European venture capital, as thesis-driven funds moved decisively into the spotlight. Instead of spreading bets across the entire innovation spectrum, more VCs are building portfolios around tightly defined investment themes and industry problems. This trend is reshaping the funding landscape. Funds like Keen Venture Partners have launched dedicated vehicles for European defense and security tech, raising €40 million from EIF specifically for startups tackling national security infrastructure. Recent portfolio moves—EclecticIQ, Avalor AI, Rescale—underline a sharp focus on deep, vertical technologies with immediate strategic value. Other funds are taking a similar approach. 7percent Ventures now concentrates on aerospace, dual-use AI, and moonshot innovation, consistently backing engineering-heavy founders solving mission-critical problems. Their recent investments—satellite comms, cybersecurity AI, aerospace telemetry—reflect this 'vertical expertise first' logic. Lab-to-market models are also gaining ground. Chalmers Ventures has systematized partnerships with scientific teams, turning real innovations into commercial deep tech businesses—not just following buzzwords. Creator Fund backs only PhD-led start-ups in AI, life sciences, and frontier tech, while Deeptech Labs specializes in seed-stage, IP-rich companies moving from prototype to product. The message is clear: targeted capital is a sign of genuine conviction. As generalist portfolios lose ground, thesis-driven strategies are setting new standards for discipline and sector insight. For founders and LPs alike, clarity of purpose and deep industry expertise have become critical differentiators in Europe's maturing VC market. This spring, European venture capital sent a strong signal: location matters less than ever, and operational quality now outweighs geography. The largest rounds and new fund launches consistently favored execution and market traction over traditional 'hotspots.' Take Reneo's €600m cross-border round—one of the biggest in Q1 2025. Its operations span France and Spain, proving that VC now follows product readiness and strategic vision, not the location of a company's headquarters. Similarly, Milan-based Hotiday raised €5,5M from top-tier investors, breaking through Italy's usual funding ceiling thanks to strong product focus and niche traction. The fund landscape reflects the same shift. Soulmates Ventures closed a €50M fund for sustainability startups across Central and Eastern Europe, while 4Founders Capital launched a €44M fund for Spanish and Southern European founders—emphasising local expertise and regional commitment. Defiant's $30M fund connects Western and peripheral European markets, and Voima Ventures' €100M Fund III targets deep tech across the Nordics and Baltics. Even previously secondary regions—Benelux, DACH, Southeast Europe—are seeing increased activity, as new funds target talent and technical strength wherever they emerge. The bottom line: investors now assess startups by execution, product, and real market potential, regardless of location. For founders, this means access to capital is more meritocratic than ever. For the ecosystem, it signals a Europe-wide race for quality—where substance, not geography, wins. Spring 2025 confirmed that infrastructure is now at the heart of Europe's tech agenda—not just for performance, but for resilience, control, and sovereignty. Governments and VCs are aligned: funding no longer just chases growth, but prioritizes the foundational layers powering AI, data, automation, and security. This shift is massive in scale. The EU's InvestAI program launched with €200 billion to build core AI infrastructure—giga-factories, sovereign clouds, and advanced chips. France added €109 billion for AI leadership, and the European Technological Competitiveness Initiative is rolling out over €10 billion into chips, cybersecurity, and cloud through fund-of-funds structures. Private capital is following suit. Investments in sovereign data pipelines, chip design, and next-gen autonomy are on the rise. Established players like Graphcore (UK) embody Europe's silicon ambitions, while stealth-mode AI hardware startups are quietly closing large rounds. Industrial infrastructure is another hotbed: FLOW X (Romania) stands out for integrating deep analytics and automation into industrial processes—moving far beyond dashboards. Funding is now targeting digital twins, industrial IoT, and process automation, making deep tech synonymous with infrastructure. Cybersecurity has become a national priority. Deals now focus on architecture for industrial and state security, with companies like Unseen (UK) pioneering AI-native protection that moves beyond traditional firewalls. Zero-trust systems, sovereign clouds, and industrial cyber platforms are quietly attracting both private and state capital. The message is clear: in 2025, infrastructure is no longer a supporting function—it's the main event. For investors and founders, building and owning the tech backbone of Europe is the highest-value play on the market. Spring 2025 has redefined the European VC landscape: investors now demand focus, technical depth, and real traction. This new discipline is making the market quieter but stronger, with capital gravitating toward deep tech, infrastructure, and clearly defensible niches—regardless of geography. Looking ahead, we expect this logic to hold. The second half of 2025 is likely to bring continued selectivity, with larger rounds flowing to proven teams and sectors solving fundamental problems—AI infrastructure, climate, industrial tech, and security. Government and private capital will keep reinforcing each other, driving further consolidation and accelerating the shift from hype to substance. For founders and investors, the message is clear: building real technology and demonstrating market resilience will remain the keys to unlocking capital and long-term success. At Zubr Capital, we see a maturing market—one poised not just to survive, but to lead the next cycle of European innovation. Oleg Khusaenov is CEO and founder of Zubr Capital Investment Сompany "Where the smart money went: Spring 2025's lessons for European VC sector" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Entrepreneur
2 days ago
- Business
- Entrepreneur
Avaana Capital Draws First Tranche of GCF's USD 24.5 Mn Investment to Boost Deep Tech Innovation
This milestone is anchored by the Small Industries Development Bank of India (SIDBI), under the guidance of the Department of Financial Services (DFS). You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Avaana Capital, a sustainability-focused venture capital firm, has announced the first drawdown from the Green Climate Fund's (GCF) USD 24.5 million investment into the Avaana Sustainability Fund. This milestone is anchored by the Small Industries Development Bank of India (SIDBI), under the guidance of the Department of Financial Services (DFS). GCF, one of the world's largest climate-focused funds, supports developing nations in reducing greenhouse gas emissions and adapting to climate change. Anjali Bansal, Founding Partner at Avaana Capital, said, "We are honoured to partner with SIDBI and the GCF. As India moves toward its Viksit Bharat 2047 vision, accelerating deep tech innovation is both an opportunity and a necessity," she said. "This partnership represents the large economic opportunity for India's deep tech ecosystem—bringing together global capital to build solutions in energy, supply chains, advanced materials, and agriculture." SIDBI Chairman and Managing Director Manoj Mittal highlighted, "SIDBI is promoting sustainability among MSMEs by integrating green finance and supporting eco-friendly business practices. This milestone for Avaana Capital underscores a broader trend where India continues to position itself as a key player in addressing global challenges through technology and innovation." Founded in 2018, Avaana Capital backs startups using deep tech to deliver impactful solutions in energy, food and agriculture, supply chains, and advanced materials. Its portfolio includes companies like GreenGrahi, Eeki Foods, Turno, Dreamfly, Kazam, Eggoz, Farmart, Amperehour, and Aerem. With the support of SIDBI and GCF, Avaana Capital aims to catalyse India's transition to a resilient, future-ready economy through homegrown, cost-effective technologies designed for global impact.
Associated Press
2 days ago
- Business
- Associated Press
Kneron Secures Grant from Saudi Arabia's NTDP, Marking Strategic Milestone in the Middle East
Selected for the RELOCATE Program, Supporting Vision 2030 Deep-Tech Strategy SAN DIEGO, CA, UNITED STATES, June 18, 2025 / / -- Kneron, a global leader in edge AI computing solutions, announced it has been selected for RELOCATE, a strategic deep-tech initiative under Saudi Arabia's National Technology Development Program (NTDP), and awarded a non-equity grant from the Saudi government. This milestone marks a pivotal step in expanding Kneron's advanced AI chip development and commercialization efforts across the Middle East. The RELOCATE program, led by the Ministry of Communications and Information Technology (MCIT), plays a central role in Saudi Arabia's Vision 2030 plan to establish the Kingdom as a global technology hub. The initiative aims to attract at least 50 semiconductor design companies and develop a talent pipeline of 20,000 AI professionals by 2030. Kneron was chosen for its proven expertise in reconfigurable Neural Processing Units (NPUs) and its strong potential to scale AI solutions globally. The secured grant will be used to establish a technological hub in Saudi Arabia for advanced AI chip R&D and commercialization, leveraging the Kingdom's growing semiconductor infrastructure and innovation ecosystem. Prior to this, Kneron had already formed a strategic partnership with the National Semiconductor Hub (NSH), which is dedicated to fostering a fabless semiconductor ecosystem in Saudi Arabia. The company is also in the process of setting up a local subsidiary in Riyadh, further contributing to the country's ambition to achieve technological sovereignty and build a robust AI-driven industry. Saudi Arabia is currently investing $100 billion to build 'Transcendence,' a next-generation technology hub, and is emerging as a central player in the region's digital economy. Kneron plans to expand its presence in the Middle East by introducing its technologies into key sectors such as enterprise AI, smart cities, and digital transformation. Albert Liu, Founder and CEO of Kneron, commented, 'The Saudi government's bold investments in AI and the swift execution of the RELOCATE program are truly impressive. We are excited about the opportunity to integrate our AI chip technologies into Saudi Arabia's smart city infrastructure and to contribute to building a regional model for transformative technological innovation.' A spokesperson from NTDP stated, 'We are pleased to welcome Kneron into the RELOCATE program as a testament to Saudi Arabia's growing appeal as a global hub for deep-tech innovation. With its cutting-edge expertise in edge AI and semiconductor design, Kneron aligns perfectly with our vision to build a knowledge-driven economy and establish a world-class semiconductor ecosystem under Vision 2030. We believe this partnership will not only accelerate Kneron's regional growth but also contribute meaningfully to Saudi Arabia's technological advancement and digital transformation.' Kneron's participation in RELOCATE reinforces its commitment to innovation in high-growth markets and its broader mission to 'empower industries through AI.' The company will continue to deliver on its mission to 'empower industries through AI' by advancing the adoption of edge AI chips in areas such as smart cities and Industry 4.0. About Kneron Kneron is a global leader in edge AI solutions, delivering lightweight, energy-efficient neural processing units (NPUs) and software for on-device intelligence across industries. Backed by investors such as Sequoia Capital, Qualcomm, and Foxconn, Kneron is driving the adoption of AI at the edge with its reconfigurable architecture, enabling real-time, secure, and efficient AI performance in everything from smart cities to enterprise systems. Tiffany Chang Kneron [email protected] Visit us on social media: LinkedIn Instagram Facebook YouTube Legal Disclaimer: EIN Presswire provides this news content 'as is' without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
Entrepreneur
09-06-2025
- Automotive
- Entrepreneur
Vecmocon Secures $18 Million Series A to Scale EV Intelligence Systems
Vecmocon has developed a strong footprint by supplying intelligent, adaptive components to EV manufacturers, aiming to be a key technology provider in both Indian and emerging global markets You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Vecmocon Technologies, a deep-tech startup working on sustainable mobility solutions, has raised $18 million in a Series A funding round aimed at accelerating its efforts to build advanced electric vehicle (EV) systems tailored for Indian and global markets. The funding round was led by sustainability-focused venture capital firm EIF, with participation from Aavishkaar Capital and the UK's development finance institution, British International Investment (BII). According to a press release issued by the company, existing investor Blume Ventures also joined the round. The capital infusion is expected to bolster Vecmocon's push to scale its proprietary embedded systems, power electronics, and data intelligence platforms, which currently power tens of thousands of vehicles across India. Founded in 2016 by alumni of IIT and ISB, the New Delhi-based company is focused on developing what it describes as "the most robust systems" suited for Indian conditions while aligning with the global transition toward clean energy. The firm plans to use the funds to expand its engineering teams, enhance R&D capabilities, and set up infrastructure that meets international standards for the electric automotive sector. "This infusion of capital will supercharge our efforts to engineer the next generation of the most robust, high-performance, software-defined, and safety-critical systems uniquely tailored for Indian conditions and global deployment in electric vehicles and clean energy systems," said Peeyush Asati, CEO of Vecmocon. He emphasized the company's alignment with India's push for technological self-reliance, noting, "We're not just building for India—we're building in India, by Indian engineers, for the world." Vecmocon has developed a strong footprint by supplying intelligent, adaptive components to EV manufacturers, aiming to be a key technology provider in both Indian and emerging global markets. Its solutions integrate real-time data analytics, smart software, and system-level intelligence to improve the performance, safety, and efficiency of electric vehicles. Backing the company's vision, Devin Whatley, managing partner at EIF, stated, "Its cutting-edge solutions unlock smarter, safer and more reliable EVs—accelerating the shift to sustainable transportation… we believe Vecmocon is well-positioned to lead the EV intelligence movement in the country" Shashvat Rai, partner at Aavishkaar Capital, said "We are delighted to support Vecmocon in their mission to revolutionize sustainable and clean mobility. This investment aligns perfectly with our commitment towards fostering innovative solutions that drive positive environmental impact The funding positions Vecmocon to scale its platform toward powering over 100,000 EVs, while on the road to become a key supplier for EV OEMs and ecosystem players in India and other emerging markets.
South China Morning Post
29-05-2025
- Business
- South China Morning Post
Environmental breakthroughs take centre stage in Hong Kong start-up pitch competition
Every early-stage company entering the 2025 EQT Impact Challenge recognised the need to come up with a business concept that could meet three key criteria: it had to be investible, scalable, and hold promise for the long term. The task was to convey that potential to a panel of expert jurors and demonstrate how the company's innovation could drive meaningful change. The pitch competition, which has held previous editions in Japan, South Korea and Singapore, aims to identify and support early-stage companies with their breakthrough concepts, business plans, financial models, and ambitions to scale for long-term growth. It is organised by EQT, one of the world's largest investment firms, with its philanthropic arm, EQT Foundation, providing the winning start-up capital to fuel growth, and access to a global network of potential industry partners and investors. The event is being held in partnership with the South China Morning Post. The competition focuses on novel, deep tech solutions and scientific breakthroughs related to climate and nature, as well as health and well-being. Many leading contenders were prepared to think big, putting forward ideas and solutions that, given the right backing and once scaled, have the potential to change lives on a global scale.
