Scaling their business model is a major challenge for European deeptech companies in order to develop their growth in the global market. This article will highlight the funding challenges faced by deeptech companies. This article is based on a roundtable discussion held at BIG10 with speakers Régis SALEUR, Managing Partner of Supernova Invest, Michiel SCHEFFER, Chairman of the Board of the European Innovation Council, and moderated by Gilles LE COCGUEN, Director of EuroQuity at Bpifrance.

Funding Challenges in Deeptech Development:

Deeptech companies, due to their advanced technological nature, require significant investments for research and development, as well as for setting up infrastructure and production capacities. However, funding these innovative projects can be challenging, particularly due to their risky nature and long-term capital needs. Entrepreneurs must therefore be persistent in finding investors willing to support their long-term vision.

The Role of Investment Funds:

Investment funds play a crucial role in financing deeptech companies. They provide not only financial resources but also sector expertise and a network of connections. Deeptech companies can benefit from the experience and advice of investors to refine their business model, develop strategic partnerships, and access new markets.

Support Mechanisms:

Some investment funds specialize in financing deeptech projects, offering support throughout the development and commercialization process. There are incubators and accelerators that provide financial, technical, and strategic support to developing deeptech companies. Additionally, deeptech entrepreneurs can participate in competitions and contests that offer not only visibility and recognition but also funding and mentorship opportunities. Finally, the IAC Scaling Club, an initiative of the European Commission, aims to support the growth of deeptech companies. It is a step beyond the accelerator, offering specific support to selected companies. Deeptech companies thus benefit from recognition and a network of experts and mentors to guide them in their scale-up journey. The IAC Scaling Club also promotes partnerships between national and cross-border investors, thereby mobilizing larger financial resources.

Advice for Deeptech Companies:

A key piece of advice given to deeptech companies is to have an international vision from the start. Instead of limiting themselves to their local market, they should think globally and rely on opinion leaders, customers, and international partners to ensure their credibility and expansion. Early internationalization opens up new business opportunities, attracts potential investors, and creates strategic alliances for the company’s growth.

A Promising Future:

The success of scaling up deeptech companies in Europe depends on several factors, including adequate funding, support from investment funds, and support mechanisms such as the IAC Scaling Club. Deeptech companies must adopt an ambitious vision, be ready to dilute control of their company, and prepare for a potential IPO. The future of deeptech companies in Europe is promising, with prospects for reindustrialization and the creation of a European venture capital market.

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