Nearly 80 deep tech and life sciences university spinouts across Europe have achieved valuations of $1 billion or more, or generated $100 million in revenue, according to the 2025 European Spinout Report by Dealroom. This milestone highlights the growing strength of Europe’s academic innovation pipeline, now valued at $398 billion in total. The report identifies 76 such companies, including high-profile unicorns like Iceye, IQM, Isar Aerospace, Synthesia, and Tekever, which are now driving increased venture capital interest in university-backed startups. In a sign of growing momentum, two new funds have recently launched with a focus on European academic spinouts. PSV Hafnium, based in Denmark and spun out of the Technical University of Denmark (DTU), closed its first fund at €60 million ($71 million), with a dedicated focus on deep tech in the Nordic region. Meanwhile, U2V (University2Ventures), a pan-European venture firm with offices in Berlin, London, and Aachen, has completed the first closing of its own inaugural fund, targeting a similar size and scope. These new entrants join a maturing ecosystem that was pioneered by established university-affiliated funds like Cambridge Innovation Capital and Oxford Science Enterprises. While many of these funds remain tied to specific institutions, the trend is diversifying, with independent venture firms now actively targeting spinouts as high-potential investment opportunities. The success of these startups is reflected in strong exit performance. In 2025, six spinouts from Switzerland, the UK, and Germany delivered exits exceeding $1 billion, including Oxford Ionics, which was acquired by U.S.-based IonQ. These outcomes are helping to validate the long-term potential of academic innovation. European university spinouts are also attracting record levels of funding. Dealroom estimates they will raise nearly $9.1 billion in 2025—close to an all-time high—despite a nearly 50% decline in overall European venture capital funding since its 2021 peak. Large rounds are being led by startups in emerging sectors such as nuclear fusion, with Proxima Fusion, and dual-use drones, exemplified by Quantum Systems, now valued above $3 billion. Many of these ventures are rooted in specialized research labs, which explains the broad geographic spread of innovation beyond traditional hubs like Oxford, Cambridge, and ETH Zurich. The Nordic region, in particular, is gaining attention for its untapped potential. PSV Hafnium’s investments, including SisuSemi—a Finnish startup leveraging research from the University of Turku—illustrate how academic breakthroughs are being commercialized across Europe. While funding is increasing, a persistent challenge remains: access to growth capital. Nearly half of late-stage funding for European deep tech and life sciences spinouts still comes from outside the continent, primarily the United States. Although this dependency has decreased over time, it underscores a broader systemic issue. For Europe to fully capture the economic value of its research and talent, it must strengthen its domestic late-stage investment ecosystem.