Almost 80 European Deep Tech University Spinouts Reach $1B Valuations or $100M in Revenue in 2025

Universities and research labs have long been Europe’s deep tech treasure trove. Now, academic spinouts have consolidated into a solid startup funnel worth $398 billion—and VC capital is following.

According to Dealroom’s European Spinout Report 2025, 76 of these deep tech and life sciences companies have either reached $1 billion valuations, $100 million in revenue, or both. These include unicorns such as Acesight, IQM, Isar Aerospace, Synthesia, and Tekever, which are now attracting funding for university spinouts.

Just this month, two new funds emerged that will bring more funding to talent emerging from European tech universities, while adding breadth to a pipeline currently led by Cambridge, Oxford, and ETH Zurich.

PSV Hafnium, out of Denmark, recently closed its inaugural fund at an oversubscribed €60 million (approximately $71 million), with a focus on Nordic deep tech. With offices in Berlin, London, and Aachen, U2V (University2Ventures) is targeting the same amount for its first fund, which it recently closed.

These two newcomers join the growing ranks of European venture firms that have university spinouts as a core part of their investment thesis. Pioneered by Cambridge Innovation Capital and Oxford Science Enterprises, which have now fully matured, this category has diversified.

While it still mainly consists of funds backed by one or more universities and institutes, it now includes independent firms that view spinouts as potential fund returners—and rightly so. Oxford Ionics, acquired by U.S.-based IonQ, was one of six spinouts from Switzerland, the U.K., and Germany that delivered exits exceeding $1 billion to their investors in 2025.

These exits come alongside increased amounts of funding. According to Dealroom, European university spinouts in deep tech and life sciences are on track to raise nearly an all-time high of $9.1 billion in 2025. This contrasts with overall VC funding in Europe, which is down almost 50% from its 2021 peak.

Large rounds closed in 2025 also reflect appetite for spinouts across sectors as varied as nuclear energy (Proxima Fusion) and dual-use drones (Quantum Systems), now valued at over $3 billion. In many cases, these startups leverage research from specialised labs, which also explains the long tail of European locations capable of producing spinoffs.

Building relationships with hubs outside Oxbridge and in leading countries can also help newcomers differentiate themselves and secure deals. “The Nordic research institutions hold extraordinary, untapped potential,” PSV Hafnium’s partners stated in a press release.

PSV Hafnium is a spinoff from the Technical University of Denmark (DTU) and also makes early-stage investments in other Nordic countries. One of its nine checks to date went to SisuSemi, a Finnish startup leveraging a decade of research at the University of Turku to bring new surface-cleaning technology to the semiconductor industry.

It is good news for teams like SisuSemi that more funding is available. It also complements grants, commercialisation support, and improved deal terms, creating an encouraging environment for Europe’s spinouts. However, one pain point remains: growth capital.

As the report’s authors note, this gap “is not a unique trend to spinouts, but something impacting the entire startup ecosystem in Europe.” Still, it is striking that nearly 50% of late-stage funding for European deep-tech and life sciences spinouts comes from outside Europe, primarily from the U.S.

While this share has decreased over the years, Europe won’t fully reap the benefits of its investments in talent and research unless this changes substantially — but that’s a broader issue to be addressed.