EIC Scaling Club scale-ups outpace peers with €4B raised

European deeptech startups are gaining momentum, a new report by the EIC Scaling Club finds. The analysis took into consideration the 120 startups that are part of the club, which have raised a combined amount of €4.06 billion in funding in the past two years.

The EIC Scaling Club is a community of 120 European deeptech scale-ups — companies developing technology based on a fundamental research breakthrough — that have been supported by the European Innovation Council (EIC). The EIC is the EU's arm to support the commercialization of high-risk startups.

The report, "Europe’s Deep Tech Scale-ups: Building Momentum", reveals a 40% compound annual growth rate (CAGR) in funding, far outpacing a comparable control group. Public backing, particularly from the EIC, has been a critical catalyst, de-risking investments and attracting private capital.

Patrik Sobocki, Senior Investment Director at Industrifonden and an EIC Scaling Club council member, says the data show “the strong effect of scale-up support in Europe.”

Public funding accelerating growth

Since its launch in April 2024, more than half of the 120 within the club have raised new capital, totalling €4.06 billion. This represents a 128% increase compared to their pre-joining funding levels. In contrast, a control group of 240 comparable companies raised just 56% of their prior funding during the same period. 

Public funding has played a pivotal role in crowding in private investors. Approximately 80% of the capital raised after joining the Club came in rounds that included EIC or other public backers.

Early EIC Accelerator grants and EIC Fund equity investments de-risked deep tech ventures, making them more attractive to private investors. Each EIC Fund-backed round attracted an average of five additional investors, underscoring the program’s ability to mobilize specialized private capital. The EIC Fund co-invested in 22% of the companies that raised after joining, while national and EU bodies like Invest-NL, CDTI, and CDP Venture provided steady support.

Maria Zubeldia, Director of Entrepreneurship at Oxford Saïd Business School and an EIC Scaling Club council member, points to the Club’s role in “connecting deep tech scale-ups with investors, corporates, mentors and international networks,” so European innovators can grow and compete globally.

Strategic autonomy in the lead

The report also reveals that funding is concentrated in sectors critical to Europe's strategic autonomy. New Space, Next-Gen Computing (Quantum & AI Compute), and Renewable Energies accounted for 80% of the total capital raised. Nine mega-rounds of €100 million or more drove 51% of the post-joining funding, with Multiverse Computing (€755M), PLD Space (€488M), and Axelera AI (€361M) leading the pack.

These sectors align with Europe’s push for technological sovereignty, including the EU Chips Act and REPowerEU initiatives. However, non-European investors, mostly from the US, held 27% of the investor slots in these mega-rounds, compared to 18% across all post-joining rounds.

Money is not enough

Capital alone does not guarantee success. The report identified 210 publicly disclosed partnerships, with commercial collaborations (32%) and strategic alliances (25%) leading the way. These partnerships span R&D, sales, and supply chain integration, helping companies scale their technologies and validate their solutions.

Sectors like Next-Gen Computing, Batteries & Energy Storage, and New Space saw the highest partnership activity, mirroring their leadership in funding. However, the report notes that European demand and procurement remain fragmented, calling for aggregated efforts under initiatives like the EU Innovation Act and Startup & Scale-up Strategy.