Report: Europe is falling behind in the global technology race
A new, in-depth report by Techleap reveals exactly where our financing system is failing.
Published on June 9, 2026
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Europe is falling behind in the global technology race. We come up with fantastic innovations here, but we leave the commercial profits to the United States. A new, in-depth report from Techleap exposes exactly where our financing system is failing.
The report builds on earlier analyses by former ASML CEO Peter Wennink. The message is as clear as it is urgent. We must radically reform our capital market, or accept that our best technologies will disappear abroad.
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The report is based on data from Dealroom covering 28,195 deep-tech companies, as well as interviews with eight founders who have raised more than 30 million euros, and with 24 investors and ecosystem partners.
Five challenges and recommendations
The report shows that the European deep tech ecosystem lags behind the United States in several structural areas, particularly in terms of scale, funding, and growth culture. These differences are summarized in five key challenges, each with corresponding recommendations.
1. Lack of large investment rounds
Europe makes 4.6× fewer investments of >€100M than the US.
Recommendation: establish specialized deep tech funds of >€1 billion to reduce capital fragmentation and enable larger investment tickets.
2. Low total exit value
European deep tech companies generate 16.6× less cumulative exit value than U.S. companies.
Recommendation: Build a stronger growth-capital ecosystem and encourage investment in scaling companies rather than quick exits.
3. Smaller funding rounds at every stage
European rounds are 3.4–4.2× smaller than in the US, limiting companies’ ability to scale up rapidly.
Recommendation: involve top international investors starting from seed/Series A and ensure better access to growth capital in later rounds.
4. Lack of large deep tech funds
The US has 18 large deep tech funds; Europe has virtually none.
Recommendation: Mobilize former founders as angel investors and fund managers, and build European mega-funds with long-term capital.
5. Early exits instead of scaling up
European founders more often opt for early sales instead of growing into major global players.
Recommendation: change incentives by having governments and investors focus more on “conviction capital” and long-term scaling up instead of quick exits.
The opportunities are there for the taking
The timing to act is perfect. Due to stricter U.S. immigration rules, known as Project Firewall, global AI talent is increasingly choosing Europe. The traditional brain drain to Silicon Valley is reversing. So the talent is present in Europe, but we must now ensure that the capital architecture grows along with it.
If we implement the five recommendations, the Dutch deep tech sector can become Europe’s golden ticket, according to the report. We have the knowledge and the companies, but we must now show the courage to invest on a large scale. The diagnosis is on the table, and the division of tasks is clear. It is up to policymakers, pension funds, and investors to take joint action.