Deeptech startups, like those building rockets, robots and quantum computers, have seen their coffers filled with VC capital recently. Investors have funnelled €6.5bn into 488 deeptech deals so far in 2024 through to early September (excluding climate and healthtech startups) according to Sifted data.
The sector has grown particularly hot in Germany and France, thanks in part to big startups like French quantum company Pascal and German AI battlefield software startup Helsing. Investors and founders cite the strong industrial and research talent coming from hubs like the Technical University of Munich as reasons why the sector is on the up.
But that talent is seemingly in short supply: there’s widely considered to be a deeptech talent shortage in Europe, with some startups in areas like photonics struggling to find any qualified European applicants. Meanwhile, hiring for defence tech startups — which are developing products and services that have military applications, like Helsing, Quantum Systems or ICEYE — has also been a big headache, industry insiders have told Sifted.
Despite the challenges, some deeptech companies are still experiencing growth spurts.
Sifted looked at which deeptech startups have hired the most across all roles at their company in the last 12 months, using data from Dealroom, LinkedIn and the companies. Sifted reached out to all of the startups to confirm their headcount and 7 out of 10 confirmed. To avoid results being skewed by early-stage startups making lots of hires while growing quickly, businesses needed to have raised at least $30m and have at least 50 employees to be considered.
Quandela
HQ: Massy, France
Founded: 2017
Headcount growth over the last 12 months: 72% to 110 employees in September (confirmed by the company)
Quandela builds photonic quantum computers, which use particles of light (photons) to make calculations. The startup says its quantum computers are scalable and accessible both on premise and through the cloud, and is selling them to industrial customers. Quandela has raised a total of $74m in funding so far, according to PitchBook data, from investors including Bpifrance, Crédit Mutuel Innovation, Omnes Capital and Serena. Last year, Quandela delivered a device to French cloud provider OVHcloud, making it the first time a private company bought and hosted a European quantum computer.
Daedalus
HQ: Karlsruhe, Germany
Founded: 2019
Headcount growth over the last 12 months: 71% to 87 employees in September (confirmed by the company)
Daedalus is building autonomous precision manufacturing factories that use AI to make parts for companies in energy, semiconductors, defence and medical technology. Its founder, Jonas Schneider, was one of the first engineers at OpenAI. The startup has raised $32.6m to date according to PitchBook, from VCs including NGP Capital, Y Combinator, Khosla Ventures and Atlantis Ventures and most recently raised a $21m Series A in February this year.
Multiverse Computing
HQ: San Sebastián, Spain
Founded: 2019
Headcount growth over the last 12 months: 69% to 149 employees in September (confirmed by the company)
Spain-based Multiverse Computing develops quantum computing software to help companies in industries like finance and manufacturing improve their AI models. Multiverse Computing most recently raised €25m in May, bringing its total raised to date to around $39.7m (€35.6m), according to PitchBook. The startup is valued at around €100m and has backing from investors including Columbus Venture Partners, the European Innovation Council Fund and QAI Ventures.
Latitude
HQ: Reims, France
Founded: 2019
Headcount growth over the last 12 months: 67% to 150 employees in September (confirmed by the company)
Latitude is developing small rocket launchers to get satellites into space and is one of several European spacetechs aiming to build out Europe’s launch capabilities to rival that of US titan SpaceX. But spacetech is still a tricky industry: “It is incredibly hard to raise for space companies,” CEO and founder Stanislas Maximin told Sifted back in May.
Latitude has raised a total of about $41m, according to PitchBook data, including a $30m Series B round in January. Its investors include Expansion Ventures, Crédit Mutuel Innovation, Bpifrance, Blast.club and Kima Ventures.
Qblox
HQ: Delft, Netherlands
Founded: 2018
Headcount growth over the last 12 months: 65% to 112 employees in September (confirmed by the company)
Qblox develops scalable quantum control stacks and equipment for quantum computer builders. It raised a $26m Series A round in June this year from investors including Quantonation, Invest-NL and the European Innovation Council.
Open Cosmos
HQ: Harwell, UK
Founded: 2015
Headcount growth over the last 12 months: 54% to 111 employees in September (confirmed by the company)
Open Cosmo builds and operates small satellites (roughly the size of a Rubik’s cube) with high resolution cameras to collect and provide data and imaging. The startup also has a data analytics platform. It last raised $50m in 2023 to expand into building larger satellites, and has raised a total of $58.5m, per PitchBook, from investors including ETF Partners, Entrepreneur First and Accenture Ventures.
PLD Space
HQ: Elche, Spain
Founded: 2011
Headcount growth over the last 12 months: 46% to 229 employees in September (based on LinkedIn and Dealroom data; the company did not respond to Sifted’s request for confirmation)
The oldest “startup” of the bunch, PLD Space develops reusable rockets. The company launched an experimental flight of its recoverable rocket last autumn; although it didn’t reach space, the startup is planning another launch late next year and one in 2026. PLD Space most recently raised €78m in April, bringing its total raised to €120m.
NVision Imaging Technologies
HQ: Ulm, Germany
Founded: 2015
Headcount growth over the last 12 months: 46% to 83 employees in September (confirmed by the company)
NVision Imaging Technologies develops quantum-based medical imaging technology to provide better MRI data for researchers and clinicians and help speed up cancer treatment and diagnosis. The German company last raised a $30m funding round in 2023 from investors including Playground Global, b2venture and Entree Capital; it also raised an additional $19.5m from the German government.
Unseenlabs
HQ: Rennes, France
Founded: 2015
Headcount over the last 12 months: 44% to 69 employees in September (according to LinkedIn and Dealroom data; the company did not respond to Sifted’s request for confirmation)
Unseenlabs operates maritime surveillance systems which locate and track ships and can be used for both defence and commercial purposes. It has built a satellite constellation to detect ship radio frequencies from space, and is backed by investors including Bpifrance, 360 Capital, Supernova Invest and OMNES. The startup most recently raised an €85m round of debt and equity back in February this year, bringing its total raised to around €120m.
Oxford Ionics
HQ: Oxford, UK
Founded: 2019
Headcount growth over the last 12 months: 38% to 58 employees in September (confirmed by the company)
Oxford Ionics is building quantum computing processors using standard semiconductor chips. It raised a £30m Series A round last January from investors including Oxford Science Enterprises, Prosus Ventures, Lansdowne Partners, Torch Partners and Hermann Hauser, who helped establish British chipmaker Arm Holdings. It also raised £2m from the UK’s National Security Strategic Investment Fund last year.
Read the orginal article: https://sifted.eu/articles/europe-fastest-growing-deeptech-startups-2/
