Deep tech companies across Europe are growing faster than many people expect. New research from Dealroom shows that businesses built on advanced science and engineering reach billion-dollar valuations in an average of 5.7 years, compared with 7.9 years for traditional tech start-ups. That’s a head start of more than two years, and a strong reason why investors are increasingly backing founders tackling complex, real-world problems.

For a long time, deep tech has been seen as a slower path to success. Big ambitions, long research phases and costly infrastructure made it feel like a patient investor’s game. Fields such as quantum computing, biotechnology, advanced materials and artificial intelligence were widely viewed as long-term bets rather than fast-growing businesses. Across Europe, deep tech companies are not falling behind software start-ups — in many cases, they are moving ahead. On average, they reach unicorn status 28 months earlier.

This progress is happening despite higher upfront costs and greater technical complexity. It suggests that the way deep tech moves from lab to market has changed, and that the supporting ecosystem around it has become stronger and more effective.

Why Deep Tech Is Picking Up Speed

One of the biggest advantages deep tech companies have is protection. Strong patent portfolios are usually built early, which gives founders breathing room. With fewer copycats circling, teams can focus on getting the product right rather than constantly watching their backs.

Then there’s partnerships. Many deep tech start-ups work closely with established companies from the outset, these relationships bring industry know-how, credibility and access to customers that software businesses often spend years trying to secure.

Investor attitudes have shifted too. Dealroom reports that 57% of European limited partners are now actively looking at deep tech funds. That interest is translating into real commitment. In 2024, 38% of deep tech unicorn funding went into just three major deals, showing where confidence is concentrating.

Deep tech unicorns are delivering around 12% higher returns than traditional tech companies, and every deep tech unicorn analysed was classed as value generating. For investors looking beyond quick wins, that combination is hard to ignore.

When the Right Conditions Come Together

France iis a great example of what can happen when policy, funding and talent pull in the same direction. Since the launch of La Mission French Tech, the country has made it easier for ambitious companies to scale, bringing research, capital and commercial support closer together.

The impact has been clear. France’s unicorn count has grown from 7 to 42, with deep tech playing a significant role. Mistral AI, founded in 2023, reached a valuation close to $14 billion within just 18 months. When Dutch semiconductor group ASML later took a stake, it added backing from a global industry heavyweight. Funding wasn’t the only contributor. Strong research institutions, highly skilled technical talent, supportive regulation and a focus on turning ideas into products all helped create momentum. It’s a model other European countries are now studying closely.

Jobs, Skills and Long-Term Impact

Deep tech companies create jobs at almost twice the rate of traditional software start-ups, and not just in one narrow skill set. Alongside scientists and engineers, they employ lab technicians, manufacturing specialists, supply chain managers and commercial teams who help turn complex ideas into real-world products.

Deep tech firms tend to rely on specialist suppliers, research partners and manufacturing networks, which means each successful company supports a much wider ecosystem. That broader footprint makes their growth particularly valuable to local economies, especially in regions looking to build skilled, long-term employment rather than short-term digital roles.

Sweden offers a thoughtful example of how to support this kind of growth. By allowing parts of its pension system to invest in venture capital, the country has created a reliable source of long-term funding for deep tech companies. In return, citizens gain exposure to innovation-led growth. It’s a natural fit, patient capital backing businesses that take time to build, but deliver lasting economic and social value once they do.

Why Patents Matter So Much

Deep tech unicorns tend to hold far more patents than traditional tech companies, around 9x as many on average. They’re working assets that shape how these businesses grow. They protect years of research from being copied overnight, which in turn makes investors more comfortable backing big, complex ideas. They also help attract corporate partners who want to work with technology that’s properly protected, not something that could disappear as quickly as it arrived. In many cases, patents open the door to early licensing deals, creating revenue long before a product reaches full scale.

From there, a natural momentum is built, as researchers are drawn to places where their work is valued and safeguarded. That talent fuels new discoveries, which strengthens the patent portfolio even further. The result is time and space to think long-term, refine ideas properly and build companies with real staying power.

Universities as Launchpads

European universities are becoming quiet powerhouses behind deep tech growth. Institutions such as Oxford, Cambridge and UCL have built experienced technology transfer teams that help researchers take ideas beyond academic papers and turn them into real companies.

That approach is now spreading across Europe. University spinouts often start life with advantages most start-ups can only dream of: access to labs, specialist equipment, advanced computing power and networks of experts who know the science inside out. This support lowers early costs, reduces risk and gives new ventures time to get the technology right before scaling.

The talent pipeline matters just as much. Graduates and researchers move directly into spinouts, carrying fresh thinking, technical depth and strong links back to the academic world. For deep tech founders, this steady flow of specialist skills is hard to replace and plays a big role in helping complex ideas make it out of the lab and into the market.

Faster Progress Through Collaboration

Deep tech tends to move faster when people work together, and Europe’s cross-border mindset gives it a real advantage. Researchers, engineers and founders regularly collaborate across countries, sharing data, specialist equipment and hard-won expertise. That openness shortens learning curves and helps teams solve problems more quickly.

Investment follows the same pattern. Backers are increasingly happy to support companies wherever the strongest ideas are coming from, not just in their home markets. Along with funding, they bring useful networks, industry contacts and fresh perspectives that can help young companies grow with more confidence.

This ability to pool talent, capital and infrastructure makes a real difference. Big challenges like climate technology, advanced manufacturing and next-generation computing often demand scale and collaboration from the start. By working across borders rather than in silos, European deep tech companies avoid repeating the same work and can focus their energy on building things that actually move the needle.

What Comes Next

The 28-month head start deep tech companies are enjoying is thanks to better access to funding, closer ties with universities and a more confident approach to turning research into real businesses.

For founders, that’s reassuring. Tackling complex, technical problems no longer means resigning yourself to slower progress. For investors, deep tech now sits comfortably alongside software as a serious growth opportunity. And for policymakers, what’s happening across Europe shows there are clear, practical ways to support innovation that delivers both economic and long-term value.