Europe deep tech funding 2025

Deep tech, including defence technology and quantum computing, emerged as one of Europe’s most heavily funded categories in 2025. According to Atomico, Dealroom, and Sifted, deep tech captured a record share of venture capital as governments, corporates, and investors prioritised strategic autonomy, national security, and long-term technological advantage.

This article covers the top deep tech companies in Europe by funding in 2025, with a focus on defence, aerospace, and quantum computing. Each company profile includes funding details, investors, and recent developments.

1. Helsing (Germany) – Defence AI

Total funding in 2025: €600 million Series D

Helsing is Europe’s most valuable defence AI company and a central player in the continent’s push for sovereign military technology.

Key funding details:

  • Series D: €600 million
  • Lead investor: Prima Materia (Daniel Ek)
  • Participating investors: Lightspeed Venture Partners, Accel, Plural, General Catalyst
  • Strategic partner: Saab

What the company does:

  • Develops AI software for defence systems
  • Builds autonomous strike and surveillance platforms
  • Integrates AI into existing military hardware

Recent updates:

  • Launched the HX-2 strike drone designed for mass production and electronic warfare resilience
  • Expanded manufacturing capacity across Germany
  • Announced plans to open a US operations centre

2. Destinus (Netherlands, Europe-wide operations) – Autonomous and Hypersonic Systems

Total funding in 2025: €190 million across equity and debt facilities

Destinus develops autonomous aerial systems for defence and dual-use applications, with long-term ambitions in hydrogen-powered hypersonic flight.

Key funding details:

  • €50 million Commerzbank financing facility
  • €140 million in convertible instruments and shareholder loans
  • Investors include private European defence-focused funds

What the company does:

  • Manufactures autonomous UAV platforms including LORD, RUTA, and Hornet
  • Develops AI-driven avionics and flight autonomy

Recent updates:

  • Acquired Swiss AI avionics firm Daedalean
  • Shifted focus from hypersonic passenger aircraft to deployable defence systems
  • Expanded industrial-scale manufacturing in Europe

3. Quantum Systems (Germany) – Defence Drones

Total funding in 2025: €160 million Series C

Quantum Systems is a leading European manufacturer of AI-powered reconnaissance drones used by NATO-aligned forces.

Key funding details:

  • Series C: €160 million
  • Lead investors: Balderton Capital, HV Capital
  • Strategic investors: Airbus Defence and Space

What the company does:

  • Builds vertical take-off and landing ISR drones
  • Provides battlefield data fusion and AI analytics

Recent updates:

  • Expanded drone deployments in Eastern Europe
  • Opened new production facilities in Bavaria
  • Signed long-term contracts with European defence ministries

4. IQM Quantum Computers (Finland) – Quantum Hardware

Total funding in 2025: €128 million

IQM is Europe’s leading quantum hardware company, specialising in superconducting quantum computers.

Key funding details:

  • Mixed public and private funding
  • Backed by Maki.vc, Tencent, MIG Capital
  • Supported by the Finnish government

What the company does:

  • Builds full-stack quantum computers
  • Works with research institutions and governments

Recent updates:

  • Deployed quantum systems to national labs in Europe
  • Expanded manufacturing capacity in Finland and Germany
  • Announced roadmap toward fault-tolerant quantum computing

5. Isar Aerospace (Germany) – Space Launch Systems

Total funding in 2025: €155 million

Isar Aerospace is developing small satellite launch vehicles to strengthen Europe’s independent access to space.

Key funding details:

  • Series C extension: €155 million
  • Investors include Earlybird, Airbus Ventures, Lakestar

What the company does:

  • Builds orbital launch vehicles for small satellites
  • Operates launch facilities in Norway

Recent updates:

  • Conducted advanced engine testing in 2025
  • Preparing first commercial orbital launch
  • Secured contracts with European space agencies

6. Pasqal (France) – Quantum Computing

Total funding in 2025: €110 million

Pasqal focuses on neutral-atom quantum processors aimed at industrial optimisation problems.

Key funding details:

  • Investors: Quantonation, Bpifrance, Temasek

What the company does:

  • Develops quantum processors using neutral atoms
  • Works with energy, logistics, and manufacturing firms

Recent updates:

  • Opened a quantum research centre in France
  • Expanded partnerships with European utilities
  • Demonstrated improved qubit coherence times

7. Northrop Grumman European Ventures (UK-linked deep tech spinouts)

Total funding in 2025: €100 million allocated across spinouts

Several UK-based deep tech companies received investment linked to defence primes expanding European R&D.

Key focus areas:

  • Secure communications
  • Autonomous systems
  • Defence-grade AI

Recent updates:

  • Increased collaboration with NATO-aligned startups
  • Expanded R&D facilities in the UK

8. Multiverse Computing (Spain) – Quantum and AI

Total funding in 2025: €189 million Series B

Multiverse Computing combines quantum algorithms with classical AI for optimisation problems.

Key funding details:

  • Series B: €189 million
  • Investors include Bullhound Capital, HP Tech Ventures

What the company does:

  • Develops quantum-inspired algorithms
  • Targets finance, logistics, and energy sectors

Recent updates:

  • Expanded operations in North America
  • Launched new enterprise optimisation platform

9. Rhea Group (Belgium) – Space and Defence Engineering

Total funding in 2025: €95 million

Rhea Group provides engineering services for space, defence, and critical infrastructure.

Key funding details:

  • Backed by European institutional investors

Recent updates:

  • Secured long-term ESA contracts
  • Expanded cyber-physical security capabilities

10. Preligens (France) – Defence Intelligence AI

Total funding in 2025: €220 million including acquisition

Preligens applies AI to satellite imagery and defence intelligence.

Key funding details:

  • Investors include Partech, 360 Capital
  • Acquired by Safran in 2024, with 2025 expansion funding

Recent updates:

  • Integrated into Safran’s defence systems
  • Expanded AI analytics capabilities

Why Deep Tech Funding Surged in 2025

Key drivers behind Europe deep tech funding in 2025 include:

  • Rising defence budgets across Europe
  • Strategic autonomy and security concerns
  • Government-backed funding programmes
  • Increased demand for quantum and aerospace technologies

Deep tech is now one of Europe’s most strategic investment categories, with long-term capital replacing short-term growth bets.

Also Read: Europe AI Funding 2025: Top 10 Companies That Raised Record Investment

We cover European technology and deep tech funding with a clear focus on verified reporting, original analysis, and key developments across the EU startup ecosystem. Follow us on LinkedIn and X for ongoing updates.

 

By Ujwal Krishnan

Ujwal Krishnan is an AI and SEO specialist dedicated to helping UK businesses navigate and strategize within the ever-evolving AI landscape. With a Master's degree in Digital Marketing from Northumbria University, a degree in Political Science, and a diploma in Mass Communication, Ujwal brings a unique interdisciplinary perspective to the intersection of technology, business, and communication. He is a keen researcher and avid reader on deep tech, AI, and related innovations across Europe, informed by their valuable experience working with leading deep tech venture capital firms in the region.