{"id":451449,"date":"2023-07-04T16:00:00","date_gmt":"2023-07-04T14:00:00","guid":{"rendered":"https:\/\/innovationorigins.com\/?p=451449"},"modified":"2023-07-04T16:00:00","modified_gmt":"2023-07-04T14:00:00","slug":"money-partnerships-and-daring-to-take-risks-as-the-keys-to-advancing-european-deep-tech-forward","status":"publish","type":"post","link":"https:\/\/ioplus.nl\/archive\/en\/money-partnerships-and-daring-to-take-risks-as-the-keys-to-advancing-european-deep-tech-forward\/","title":{"rendered":"Money, partnerships, and daring to take risks as the keys to advancing European deep tech forward"},"content":{"rendered":"\n<p>During the <a href=\"https:\/\/hightechcampus.com\/nl\/events\/hightechxl\/deep-tech-connect-a-deep-tech-innovation-forum\">Deep Tech Connect<\/a> event organized on June 28 at the <a href=\"https:\/\/hightechcampus.com\/\">High Tech Campus Eindhoven<\/a> by <a href=\"https:\/\/hightechxl.com\/\">High Tech XL<\/a> and <a href=\"https:\/\/extremetechchallenge.org\/\">Extreme Tech Challenge<\/a>, a panel session delved into deep tech trends and topics. Deep tech companies are those applying a new scientific or engineering breakthrough in the form of a product. Jean-Francois Bobier, Partner &amp; Director of&nbsp;<a href=\"https:\/\/www.bcg.com\/\">Boston Consulting Group<\/a>, defined it as <em>\u201c<\/em>the sum of advanced and cutting-edge tech plus mature tech plus solving a real-world problem<em>\u201d<\/em>.<\/p>\n\n\n\n<div class=\"io-block io-block__summary\"><ul><li>In 2022, European deep tech startups raised 22 percent less money than the year before; <\/li><li>Money is one of the problems, but different approaches to fostering collaboration can be of great help as well; <\/li><li>Oftentimes, investments in deep tech are hampered as venture capitalist funds lack the necessary knowledge; <\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Lower funding, improved resilience&nbsp;<\/h2>\n\n\n\n<p>Before the panel, Nicolas Autret, partner at <a href=\"https:\/\/waldencatalyst.com\/\">Walden Catalyst Ventures<\/a>, presented some of the results of the European Deep Tech <a href=\"https:\/\/dealroom.co\/uploaded\/2023\/01\/Dealroom-European-Deep-Tech-2023report.pdf?x97895\">report<\/a>.&nbsp; Although European deep tech startups raised 22 percent less money than in 2021 \u2014 $18 billion versus $22 billion \u2013&nbsp; the segment was the second best performing one, after energy, showing the sector&#8217;s resiliency.&nbsp;<\/p>\n\n\n\n<p>Furthermore, the report underlines how the key emerging areas of Deep Tech are changing. Novel AI, the Future of Computing, Novel Energy, and Space Tech raised over two billion dollars in 2022, the highest total ever and double the amount raised in 2020.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Autret also pointed out some of the challenges European DT faces. \u201cEurope is cluttered with DT clusters, which aren\u2019t concentrated. The challenge is to connect the dots and foster cross-country collaborations. Whereas it\u2019s relatively easy for startups to receive early support, what\u2019s challenging is raising larger rounds of money. Furthermore, a gap exists between dedicated deep tech investors and generalist venture capital funds, and closer collaboration is desirable.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Overcoming the impasse&nbsp;<\/h2>\n\n\n\n<p>The starting point of the panel discussion \u2013 moderated by HighTechXL\u2019s CEO John Bell \u2013&nbsp; was indeed the 2022 decrease in deep tech funding. Prince Constantijn van Oranje-Nassau, the \u2018special envoy\u2019 for <a href=\"https:\/\/www.techleap.nl\/\">TechLeap.nl<\/a>, acknowledged the dip in investments yet pointed out how the climate discussion \u201chas been taken forward.\u201d<\/p>\n\n\n\n<p>In Bobier\u2019s view, money is still the main problem. \u201cAll European funding \u2013 including the United Kingdom and Switzerland \u2013 makes up to a third of the capital invested in the US. They started in the \u201870s and are way ahead now. Furthermore, many European CEOs don\u2019t have any knowledge about finance, human resources, and marketing.\u201d<\/p>\n\n\n\n<p>A way to access new money is through pension saving funds, a path already explored in the Netherlands. Tesla van Vuren, a partner at <a href=\"https:\/\/www.deeptechxl.com\/\">DeepTechXL<\/a>, took part in the negotiations with the Dutch pension funds to use part of this money to invest in DT. \u201cPerseverance and constant contact were the keys to succeed,\u201d she said.&nbsp;<\/p>\n\n\n\n<p>In his <a href=\"https:\/\/innovationorigins.com\/en\/the-story-of-asml-it-started-with-poverty-and-negligence-it-succeeded-through-perseverance-and-a-connecting-ecosystem\/\">speech<\/a> at the same event, ASML\u2019s CEO Peter Wennink also discussed the opportunities for pension funds. \u201cThere is enough money for investments, but maybe it&#8217;s in the wrong place.&nbsp; I mean, in fact, when you compare Europe to the US, it&#8217;s more in private funds there, whereas here, it&#8217;s hidden in pension funds and maybe also state funds. And by definition, those places are more risk averse. They will only come forward when they have a high level of trust. So it all comes down to creating the credibility.\u201d<\/p>\n\n\n<div class=\"vlp-link-container vlp-layout-basic wp-block-visual-link-preview-link advgb-dyn-e5b90517\"><a href=\"https:\/\/ioplus.nl\/archive\/en\/the-story-of-asml-it-started-with-poverty-and-negligence-it-succeeded-through-perseverance-and-a-connecting-ecosystem\/\" class=\"vlp-link\" title=\"The story of ASML: it started with poverty and negligence, it succeeded through perseverance and a connecting ecosystem\"><\/a><div class=\"vlp-layout-zone-side\"><div class=\"vlp-block-2 vlp-link-image\"><\/div><\/div><div class=\"vlp-layout-zone-main\"><div class=\"vlp-block-0 vlp-link-title\">The story of ASML: it started with poverty and negligence, it succeeded through perseverance and a connecting ecosystem<\/div><div class=\"vlp-block-1 vlp-link-summary\">ASML hasn&#8217;t always been this 42,000-employee, number 1 tech company in Europe. On the contrary, it started with &#8220;poverty and negligence&#8221;, back in 1984. <\/div><\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\">Silicon Europe<\/h2>\n\n\n\n<p>When thinking of deep tech ecosystems, American Silicon Valley is the benchmark Europe looks at. \u201cSilicon Valley is roughly half the size of the Netherlands and Belgium combined. In a way, Dutch cities have a similar density,\u201d said Constantijn. \u201cThe risk I see is compartmentalization between the different cities, which shouldn\u2019t be competing against each other but should rather be part of one system,\u201d he added.&nbsp;<\/p>\n\n\n\n<p>Autret underlined Silicon Valley\u2019s \u201chigh velocity\u201d in innovation flows connecting companies, universities, and venture capitalists. \u201cThe European way of doing business is different, and most importantly, our culture is different. We\u2019ve been trying to replicate Silicon Valley in Europe, but we should probably find another way to put all countries on the line and establish a collaboration culture.\u201d He also stressed how US corporates have a role in building the ecosystem while remarking that European ones don\u2019t often know how to acquire startups.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Risk culture<\/h2>\n\n\n\n<p>The audience also had a chance to ask some questions to the panelists. One of them prompted the experts to discuss if, to change the ecosystem, people should be taught how to accept risk \u2013 a willingness that, in the US, is much more prevalent.&nbsp;<\/p>\n\n\n\n<p>Despite agreeing partly, Constantijn has a different take on the topic. \u201cI believe it concerns risk management and how learning in university and funding schemes are structured. I think investing in managing helps to de-risk, but the cultural shift will come later.\u201d<\/p>\n\n\n\n<p>In van Vuren\u2019s view, co-creation can help. \u201cThis way, corporates can de-risk, and startups have an active role,\u201d she said. \u201cCorporates excel in what they do, and it is hard to introduce new technologies. To attract their interest, I suggest developing something new and possibly premium product,\u201d Bobier added.&nbsp;<\/p>\n\n\n<div class=\"vlp-link-container vlp-layout-basic wp-block-visual-link-preview-link advgb-dyn-bb23cfb5\"><a href=\"https:\/\/ioplus.nl\/archive\/en\/tnw-2023-its-a-difficult-time-and-that-means-plenty-of-opportunities-for-tech-start-ups\/\" class=\"vlp-link\" title=\"TNW 2023: It&#039;s a difficult time, and that means plenty of opportunities for tech start-ups\"><\/a><div class=\"vlp-layout-zone-side\"><div class=\"vlp-block-2 vlp-link-image\"><\/div><\/div><div class=\"vlp-layout-zone-main\"><div class=\"vlp-block-0 vlp-link-title\">TNW 2023: It&#8217;s a difficult time, and that means plenty of opportunities for tech start-ups<\/div><div class=\"vlp-block-1 vlp-link-summary\">The TNW Conference 2023 (The Next Web) got off to a somewhat disappointing start yesterday. Mark Rutte was absent himself but addressed the packed Vision Stage via video. Many visitors walked away.<\/div><\/div><\/div>\n\n\n<h2 class=\"wp-block-heading\">Funds lacking the necessary knowledge<\/h2>\n\n\n\n<p>Another question the audience asked the panelists about was the potential of life sciences as the next big domain for DT investments \u2013 such as the merger of biology with AI.&nbsp;<\/p>\n\n\n\n<p>\u201cSynthetic biology is definitely an important domain, but as VC, we miss the right technical knowledge to make the right investments in it,\u201d lamented Autret. Van Vuren emphasized the importance of having the right expertise, not only for making the right investments but to help startups solve the problems they might encounter while developing their ideas.&nbsp;<\/p>\n\n\n\n<p>In also underlining the lack of technical knowledge on the VC, Prince Costantijn added that \u201cthe European Innovation Council could do better technical due diligence.\u201d As more technologies emerge, Bobier believes that more research is needed to help VCs make informed choices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Moving forward&nbsp;<\/h2>\n\n\n\n<p>In conclusion, the four speakers encouraged deep tech entrepreneurs to pursue their dreams, set ambitious goals, and expand their boundaries. In the fight against the most pressing challenges of our times, daring to put the latest scientific breakthroughs at work can be of great help.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>During the Deep Tech Connect event organized on June 28 at the High Tech Campus Eindhoven by High Tech XL and Extreme Tech Challenge, a panel session delved into deep tech trends and topics. Deep tech companies are those applying a new scientific or engineering breakthrough in the form of a product. Jean-Francois Bobier, Partner [&hellip;]<\/p>\n","protected":false},"author":2084,"featured_media":495553,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[3009],"tags":[33269,825,74831,484],"location":[6763],"article_type":[36684],"serie":[],"archives":[],"internal_archives":[],"reboot-archive":[],"class_list":["post-451449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup","tag-deep-tech-en","tag-high-tech-campus-en","tag-innovatie-2","tag-innovation","location-netherlands","article_type-news"],"blocksy_meta":[],"acf":{"subtitle":"2022 saw a drop in investments into European deep tech start-ups. What can be done to strengthen the ecosystem? ","text_display_homepage":false},"author_meta":{"display_name":"Mauro Mereu","author_link":"https:\/\/ioplus.nl\/archive\/author\/mauro-mereu\/"},"featured_img":"https:\/\/ioplus.nl\/archive\/wp-content\/uploads\/2023\/07\/20230628_111053-1.png","coauthors":[],"tax_additional":{"categories":{"linked":["<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/startup\/\" class=\"advgb-post-tax-term\">Start-ups<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">Start-ups<\/span>"]},"tags":{"linked":["<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/startup\/\" class=\"advgb-post-tax-term\">deep tech<\/a>","<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/startup\/\" class=\"advgb-post-tax-term\">High Tech Campus<\/a>","<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/startup\/\" class=\"advgb-post-tax-term\">innovatie<\/a>","<a href=\"https:\/\/ioplus.nl\/archive\/en\/category\/startup\/\" class=\"advgb-post-tax-term\">innovation<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">deep tech<\/span>","<span class=\"advgb-post-tax-term\">High Tech Campus<\/span>","<span class=\"advgb-post-tax-term\">innovatie<\/span>","<span class=\"advgb-post-tax-term\">innovation<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 3 years ago","modified":"Updated 3 years ago"},"absolute_dates":{"created":"Posted on July 4, 2023","modified":"Updated on July 4, 2023"},"absolute_dates_time":{"created":"Posted on July 4, 2023 4:00 pm","modified":"Updated on July 4, 2023 4:00 pm"},"featured_img_caption":"","series_order":"","_links":{"self":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/451449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/users\/2084"}],"replies":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/comments?post=451449"}],"version-history":[{"count":0,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/posts\/451449\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media\/495553"}],"wp:attachment":[{"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/media?parent=451449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/categories?post=451449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/tags?post=451449"},{"taxonomy":"location","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/location?post=451449"},{"taxonomy":"article_type","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/article_type?post=451449"},{"taxonomy":"serie","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/serie?post=451449"},{"taxonomy":"archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/archives?post=451449"},{"taxonomy":"internal_archives","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/internal_archives?post=451449"},{"taxonomy":"reboot-archive","embeddable":true,"href":"https:\/\/ioplus.nl\/archive\/wp-json\/wp\/v2\/reboot-archive?post=451449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}