Deep Tech is where it is at, according to a joint report by the London-based venture capital firm, Atomico, and the Slush startup conference based in Helsinki, Finland, released Wednesday.
Since the start of 2015, an estimated 2.3 billion dollars were invested in European companies, a total of 935 million this year alone. Though slightly weaker than 2015, it is more than three times the 289 million dollars invested in 2011, according to Atomico.
Why the increased investments? There is an incredibly high demand to further develop the hardware required for artificial intelligence, virtual and augmented realities and the Internet of Things. Plus the technology for drones, robots, 3D-printing and nano-satellites.
This all points to the larger trend that deep tech is growing in Europe and investors, especially those in the US, have taken notice. In 2016, 27 percent of all Europe’s venture funding came from the US.
While the US, overall, still provides more capital for startups, the engagement of a few key investors in Europe could change that, the report continued.
When it comes to tech, Germany is not a bad place to be. Between 2011 and 2016, just under half a billion dollars were invested into new companies.
However, when compared to Britain’s deep-tech startups it is unimpressive. Britain’s startups pulled in approximately 1.3 billion dollars, according to the report. France’s startups secured over 6.2 million dollars in investments.
Across all European countries, this translates to 282 rounds of investment in deep tech companies, according to the report.
And with US tech giants, like Amazon.com, Apple Inc. and Facebook Inc., keeping their eyes on Europe, the number of investments are expected to rise.
This article was originally published on Gründerszene.
Translation by Christine G. Coester