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Amid geopolitical tensions and volatile markets , the inquiry of Europe ’s ability to endure the tempest ahead , especially as President Trump seems intent on having his pound of tariff from the continent , is looming magnanimous .

But an extensive new written report claims cryptic tech is poised to become a cardinal pillar of Europe ’s security , defense , and future autonomy , in especial from the U.S.

Deep tech attracted € 15 billion ( $ 16.3 billion ) in venture investments in 2024 , grant to a 184 - Thomas Nelson Page report card by speculation firms Lakestar , Walden Catalyst , Dealroom , and the mystifying tech group discussion Hello Tomorrow . The report also found that almost one - third of all venture capital invested in Europe is now go to deep technical school .

M&A natural process in the space increased to $ 12.2 billion last yr , the report said , but it also see that European cryptical technical school startup still rely on the U.S. for exits . Furthermore , 50 % of the growth chapiter raised by cryptical tech startups comes from outside the continent .

Still , deep tech could also be see as a hedgerow against normal “ momentum investing ” among venture capitalists , enjoin the account .

The write up ’s co - generator , Lukas Leitner , also a abstruse technical school investor at Lakestar , severalize TechCrunch that while geopolitical tensions pose significant challenges , Europe needs to embrace the moment , and abstruse tech could be the key that unlock next resilience for the continent .

However , the road in advance is not without challenges . The U.S. has a “ flywheel effect ” in cryptical technical school while Europe ’s ecosystem is still unripe , Leitner take note . “ We have a flywheel in the ‘ shallow ’ tech scene . You see a lot of second - time founder , come out of Revolut and so on , work up expectant companies . But not yet from inscrutable tech companies . ”

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“ Europe has substantial research institutions , engine room natural endowment , and supportive public view for deep tech , but there need to be policy changes to foster a culture that abide adopt danger , ” he sum up .

Arnaud de la Tour , the chief executive officer of Hello Tomorrow , said that the belief that compute - poor Europe would always jail in AI was recently take exception by the visual aspect of open germ DeepSeek : “ It ’s a huge opportunity for Europe , because we have great AI gift   … Many are attend to total back to Europe because of the geopolitical landscape . But we definitely need to have the right insurance framework so as to unlock the kind of potency that we have . ”

Leitner pointed out that Europe ’s proportional weakness in computation power is cancel by its strengths in photonics computing , which offers major reward in speed and efficiency . “ We ’re really good in Europe with photonics , because we have good optical maser systems , and we have good fundamental enquiry on the photonic side , ” he enjoin .

De la Tour added that Europe could also take advantage of a brain drainage in the U.S. as science is defunded by the Trump administration . “ The National Science Foundation , which is the biggest supporter of founder - applied research in the U.S. has had its budget cut by half . A lot of those cracking scientist do n’t have a occupation anymore , and many could come to Europe , ” he said .