Public-Backed Deeptech Startups Draw Private Capital
Founders of European deeptech companies seeking growth rounds should note that public co-investment is bringing in later private investors.
Updated on Nov. 4, 2026 in Startups
Members of the European Innovation Council's EIC Scaling Club, a group of 120 European deeptech scale-ups, have raised €4.06 billion since joining the program launched in April 2024. For startups in deeptech and capital-intensive sectors, the club's results show how public backing can draw in private capital at later funding stages.
Why it matters
Club members' funding rose 128% compared with their pre-joining levels, while a control group of 240 comparable companies raised 56% of prior funding in the same period. The gap suggests public support, through EIC Accelerator grants and EIC Fund equity, is helping de-risk ventures enough to attract private investors.
Club members raised €4.06 billion since joining, a 128% increase over pre-joining funding levels versus 56% for a control group of 240 comparable companies. The 120-company club recorded a 40% compound annual growth rate in funding.
The players
European Innovation Council (EIC)
The EIC is the European Union's innovation funding body, which runs the EIC Accelerator grants and the EIC Fund that back early-stage and scaling deeptech companies.
The details
EIC Accelerator grants and EIC Fund equity investments reduce early financial risk for deep tech ventures, which can make them more attractive to private investors. Roughly 80% of capital raised after joining came in rounds that included EIC or other public backers, and each EIC Fund-backed round drew an average of five additional investors. Nine mega-rounds of €100 million or more accounted for 51% of post-joining funding, and non-European investors held 27% of mega-round investor slots compared with 18% across all post-joining rounds.
Timeline
April 2024: EIC Scaling Club launched.
Over the past two years: club scale-ups raised €4.06 billion combined.
Market Landscape
The EIC Scaling Club's results show public deeptech funding drawing in private investors at the scale-up stage, a gap where many European ventures have historically struggled to raise capital. The concentration of funding in New Space, Next-Gen Computing, and Renewable Energies, which accounted for 80% of capital raised, reflects where public backing is directed.
Founders of deeptech companies seeking growth funding should factor in that public-backed rounds were about 80% of capital raised after joining, so public co-investors may help bring in later private rounds. Operators should track whether syndicate partners include non-European investors, since their share of mega-round slots was 27% versus 18% overall.
The takeaway
For deeptech startups, the report suggests public co-investment can serve as a signal to later private investors, so it is worth tracking the share of public-backed rounds in your own fundraising history. Qualified financial advisers should be consulted on any decision about accepting public equity or grant terms.
Further reading
For broader context on how early-stage ventures raise capital, see the Startups section.
