The Deep Tech Funding Snapshot!
Robotic legs with synthetic muscles? GenAI gene editing? It can only be the latest reality-bending innovations from Deep Tech. 2024 has seen a host of AI-inspired breakthroughs across high-impact sectors like medicine and finance, and it’s not showing signs of slowing. Deep Tech now claims around 20% of the global venture capital share.
The consultants at Deeprec.ai are delving into the latest funding news to paint a picture of the current market; check it out below.
Making Big Moves
OpenAI is currently in talks to raise $6.5 bn at a valuation of a staggering $150bn, with investors keen to cash in on the LLM boom. It’s a giant step up from the recent reports claiming the ChatGPT was seeking $1bn, and it’s a world apart from its $86bn valuation at the start of this year. It’s still somehow unsurprising. On the one hand, it’s a stark indication of deep tech’s frantic growth, and on the other, it leaves room for conversations about inflated valuations.
Deep tech is facing a host of novel challenges, including increased regulatory scrutiny, a lengthy time to market, and rising research and development costs. Thankfully, well-established ecosystems and a surge in partnerships have proven vital in navigating the complexities of the industry. Recent breakthroughs in medtech, robotics, and quantum computing continue to push the boundaries of innovation, drawing the interest of investors betting on long-term growth.
German AI defence company Helsing raised €450M back in July, bringing its most recent valuation to around €4.95bn amid growing investment appetite for the more controversial areas of deep tech. This is evident in the US market to an even greater extent, reflected in the $14bn valuation of Anduril Industries earlier this year (after the business raised $1.5bn from VC investors in August).
French startup Samp raised €6M in funding to help drive its innovative sustainability-focused tech, a first-of-its-kind AI-generated digital twin solution designed to monitor industrial sites.
With a new CEO at the helm, UK-based Stability AI beat the odds to secure $80M in funding earlier this year, emerging into a sturdy position. Stability AI develop GenAI models across a range of modalities.
Wayve, a UK-based autonomous vehicle startup skyrocketed to the top of the deal list after raising $1.05bn in series C capital, making it the largest-ever investment in a European AI firm.
The Busiest Investors
The European Innovation Council (EIC) lives up to its self-designated title as Europe’s biggest deep tech investor this year, providing around €411M in funding for 68 companies in 17 countries. Startups in Germany and France have tied for the top spot, each receiving 19% of the total funding.
GenAI-related tech segments take the top three spots for global VC investment, raising a combined $44.8bn according to Dealroom’s data.
Antler, described as The world’s Zero Day Investor, completed 82 deals in the first half of 2024, making it the busiest investor so far this year. Operating out of a Singapore-based HQ, Antler has invested in over 1000 companies across 6 continents since 2018. QMill, a pioneering quantum-computing organisation based in Finland, is one of the latest businesses to receive funding from Antler ($4M from Antler and Maki.vc).
The French market is making big moves, largely spearheaded by Bpifrance, the French sovereign wealth fund and long-term champion of deep tech startups. Bpifrance, ranked as Europe’s top private equity investor in 2023, injected around €63bn into the French economy last year.
France, Germany, the UK, Ireland, and the US have all leaned on robust, growth-enabled startup ecosystems to propel their deep tech efforts forward in the last year – it’s an exciting time to be working (and investing) at the bleeding edge of tech.
The DeepRec.ai team are working with a range of incredible tech pioneers, and we’re eager to match them with best-in-class talent. Looking for a new opportunity? Check out our live jobs: https://www.deeprec.ai/jobs.