What it takes to build a globally competitive deeptech business in Europe

Europe boasts a rich history of pioneering scientific research, yet converting groundbreaking discoveries into globally competitive businesses remains a substantial challenge for many founders. The region's deeptech ecosystem is expanding, with venture capital pouring in at an accelerating pace. Sifted data reveals that deeptech startups in Europe raised €43.8bn in 2026, marking a 143% increase from the €18bn raised throughout the previous year.

However, Europe often loses its top deeptech companies to overseas operations if it fails to create and maintain localized markets and public procurement demand.

Two key figures who grasp this reality well are Juha Vartiainen, co-founder of Finnish quantum company IQM, and Loïc Henriet, chief technology officer at French quantum company Pasqal. In a Sifted interview, Vartiainen and Henriet discussed the hurdles and prospects for nurturing homegrown deeptech companies and how individual successes contribute to a larger European deeptech ecosystem.

Moving from academia to scaling a deeptech company demands a shift in mindset. Founders must abandon academic benchmarks and adopt a commercial perspective to create and market a product. Henriet advises that success should be redefined, as academia focuses on performances, experiments, and innovation, while customers and clients demand dependability.

If a company aims to sell within Europe, it must begin to grow there. Vartiainen highlights that academic research is often an individualistic endeavor, which can clash with the collaborative nature of building a company. He stresses that working towards a unified outcome—such as the product—is crucial, as academic researchers typically do not operate as a team.

For those who are fundamentally scientists, transitioning to a commercial startup path can be arduous. Public funding in Europe should aim to mitigate risk and bridge the gap between early-stage development and later-stage growth, according to Henriet. Developing quantum technology necessitates significant, early-stage capital before a product can even reach the market.

Henriet and Vartiainen underscore that localised market demand is pivotal for deeptech companies to scale. They argue that a company will ultimately expand its operations where its loyal customers reside. Europe currently has the potential to sustain its most successful deeptech firms by fostering local demand.