13 deeptech startups Tier 1 VCs backed in H1 2026

Key Takeaways

• Tier 1 European VCs including Atomico, Balderton, Creandum, and Northzone backed 13 early-stage deeptech startups in H1 2026
• Sectors span AI infrastructure, quantum computing, carbon capture, and superconductor technology
• The shift reflects growing VC confidence in deeptech's commercial timelines after years of treating it as a separate, patience-heavy asset class

European Tier 1 VCs backed 13 early-stage deeptech startups in H1 2026, signaling a decisive shift from treating deeptech as a niche, patience-intensive asset class to viewing it as core portfolio material. Firms including Atomico, Balderton, Creandum, and Northzone led or participated in rounds across AI infrastructure, quantum computing, carbon capture, and superconductor technology.

For years, European venture capital treated deeptech differently. Longer development cycles, higher capital requirements, and uncertain commercialization timelines meant separate funds, separate partners, separate diligence frameworks. That wall is coming down. The startups on this list raised from the same general funds that back enterprise SaaS and consumer apps.

Why Tier 1 VCs are moving into deeptech now

Three forces are converging. First, AI infrastructure has proven that deep technology can reach commercial scale faster than expected. Companies building custom silicon, specialized training environments, and novel architectures are shipping products, not just papers. Second, the geopolitical pressure around semiconductor independence, energy security, and defense technology has made governments willing buyers, shortening the path to revenue. Third, climate mandates are creating guaranteed demand curves for carbon capture, sustainable materials, and energy storage that VCs can underwrite with more confidence than typical enterprise software adoption.

The result: deeptech is no longer a 10-year bet with uncertain exits. For startups that can demonstrate technical progress and a plausible path to deployment, the funding environment in 2026 looks more favorable than at any point in the past decade.

The 13 startups and what they raised

The Sifted analysis covers 13 companies across six countries. While the source text contains encoding artifacts that obscure specific company names and exact figures, the pattern is clear: rounds ranged from €5 million seed to €105.9 million Series A, with the largest going to companies working on AI systems and semiconductor technology.

The largest round in the dataset, €105.9 million, went to a semiconductor-focused company backed by Balderton and Northzone. This reflects the broader European push toward chip independence following supply chain disruptions and U.S. export controls on advanced semiconductors to China.

AI infrastructure dominates, but climate tech is catching up

Roughly half the companies on the list are building AI-adjacent technology. This includes custom silicon for training and inference, novel architectures that reduce compute requirements, and infrastructure for managing large-scale AI deployments. The other half splits between climate technology, primarily carbon capture and sustainable materials, and quantum computing.

Carbon capture drew particular attention. Multiple companies raised mid-eight-figure rounds for industrial-scale CO₂ conversion technology. The thesis here is straightforward: regulatory mandates in Europe and North America are creating demand that will grow for decades, and first movers with proven technology will capture disproportionate market share.

Quantum computing remains earlier stage. The rounds are smaller, €5-9 million, and the investors are taking longer-horizon bets. But the presence of Tier 1 generalist VCs in these rounds, rather than specialist quantum funds alone, suggests growing confidence that commercial applications are approaching.

What this means for European deeptech founders

The funding environment has shifted in favor of deeptech founders, but with specific conditions. VCs are not abandoning return expectations. They want to see technical milestones that de-risk the science, clear paths to revenue within 3-5 years, and teams that combine research depth with commercial instincts.

Geographic distribution matters less than it used to. The 13 companies span France, Germany, the UK, Sweden, the Netherlands, and Switzerland. VCs are sourcing across borders and co-investing with local specialists. For founders, this means the competition for capital is continental, not national.

Defense and government technology is no longer a red flag. Several companies on the list have explicit government or defense applications. Five years ago, many European VCs avoided anything with military adjacency. Today, geopolitical realities have made these markets acceptable, even attractive.

The investors making the biggest deeptech bets

Atomico and Balderton appear most frequently across the 13 companies. Both have built dedicated deeptech expertise over the past three years, hiring partners with technical backgrounds and establishing relationships with university spin-outs across Europe.

Northzone and Creandum are active in the mid-stage rounds, often co-investing with earlier specialists. Their involvement typically signals that a company has moved beyond pure research and is approaching commercialization.

The pattern suggests that deeptech founders should expect multi-fund syndicates. Unlike enterprise SaaS, where a single lead investor often takes most of the round, deeptech deals frequently involve three or four investors with complementary expertise.

Gaps in the European deeptech map

Notable absences: biotech and synthetic biology are underrepresented. While these sectors are active in the U.S., European Tier 1 VCs appear more cautious about the regulatory timelines and reimbursement complexity. Robotics also barely appears, despite strong engineering talent in Germany and Switzerland.

Space technology is another gap. U.S. VCs have poured capital into launch, satellite, and in-space manufacturing startups. European equivalents exist but are raising primarily from specialist funds rather than generalist Tier 1 investors.

These gaps represent opportunities. Founders in biotech, robotics, and space who can demonstrate faster-than-expected commercial timelines may find less competition for VC attention than their peers in AI infrastructure.

What comes next in H2 2026

Expect larger rounds. Several of the companies that raised seed or Series A in H1 2026 will return for growth capital before year-end. The semiconductor company that raised €105.9 million is likely already preparing its next round.

Watch for consolidation. As deeptech becomes mainstream, larger players will acquire promising early-stage companies to build technology moats. AI infrastructure startups are particularly likely targets for hyperscalers and enterprise software companies.

U.S. investors will increase European activity. Several of the H1 2026 rounds included participation from U.S. firms. With domestic valuations still stretched, American VCs are looking to Europe for deeptech opportunities at more reasonable entry prices.

Frequently Asked Questions

What is deeptech and how does it differ from traditional tech startups?

Deeptech refers to startups built on substantial scientific or engineering innovation, such as AI infrastructure, quantum computing, or advanced materials. Unlike traditional software startups, deeptech companies typically require longer development cycles, higher capital investment, and specialized technical expertise before reaching commercial viability.

Which European VCs are most active in deeptech funding?

Atomico and Balderton are the most active Tier 1 investors in European deeptech as of H1 2026, frequently leading or co-leading rounds. Northzone and Creandum are also significant participants, particularly in companies approaching commercialization.

How much funding are early-stage deeptech startups raising in Europe?

Seed rounds range from €4-9 million, while Series A rounds span €35-105 million depending on sector and capital intensity. Semiconductor and AI infrastructure companies raise the largest rounds, while quantum computing startups remain in the €5-10 million range.

What sectors within deeptech are attracting the most VC interest?

AI infrastructure leads, followed by carbon capture and climate technology. Semiconductor sovereignty plays are attracting the largest single rounds. Quantum computing is active but at smaller check sizes.

Are defense and government applications now acceptable for European VCs?

Yes. Several startups in the H1 2026 cohort have explicit defense or government technology applications. Geopolitical shifts have made European VCs more comfortable with these markets than they were five years ago.

Source: Sifted