
Good morning {{first_name}},
In early 2026, the report from the Financial Times highlighted a clear shift in the semiconductor business: while billions are now flowing into European fabs, the real bottleneck is not manufacturing. It’s all about design, advanced architectures, and AI-specific chips.
As Europe pushes for technological sovereignty, a new wave of early-stage startups is rethinking chip design across architecture, materials, and AI-driven development. In this issue, we highlight 5 early-stage European semiconductor startups that are rethinking computation from first principles.
Also in this issue:
Michael Brigl, Head of BCG Central Europe, on why sovereignty is about “increasing optionality, reducing dependency”
Deloitte’s Tech Trends 2026 report sees a “Great Rebuild” that signals a full reset of enterprise IT architectures in the age of AI
And DTM-founder Martin Schilling highlights the 9 frontiers where Europe’s deepest competitive advantages are being built at the intersection of AI and physical systems.
Enjoy the read!
THE LEAP | BY MARTIN SCHILLING
The 9 Most Promising Cross-Domain Deep Tech Frontiers in Europe

Dear all,
In the late 1850s, a young French chemist spent hours peering through a microscope, obsessed with a mystery troubling France's wine industry: entire barrels turning sour without explanation. Inside the fermenting wine, he discovered tiny living organisms — some producing alcohol, others producing acid. The decisive insight: fermentation wasn't just chemistry. It was biology.
His name was Louis Pasteur. What began as a problem for winemakers led to microbiology, modern hygiene, and vaccines — a breakthrough born at the intersection of chemistry, biology, and industrial production.
Today's most successful deep tech innovators work in exactly the same way. Here are the 9 most promising Cross-Domain Deep Tech & AI Frontiers that matter now for Europe.
Frontier | 🔑 European Players |
1. Software-defined warfare (~€4.2B) — AI fusing multi-domain sensor data into autonomous drones, ISR and command — replacing legacy hardware at a fraction of the cost | Startups: Helsing, Quantum Systems, Tekever, Stark Defence, ARX Robotics, Roke Enterprises: Rheinmetall, KNDS, Thales, Airbus Defence & Space, Leonardo, Saab |
2. AI-native TechBio (~€3.4B) — AI platforms that prioritise targets, design candidates and optimise entire drug portfolios. Big Pharma's €200B patent cliff is the structural demand driver | Startups: Isomorphic Labs, Owkin, Iktos, Healx, LabGenius, Insilico Medicine Europe Enterprises: Novartis, Sanofi, AstraZeneca, Bayer, Roche, Novo Nordisk |
3. Quantum-HPC (~€3.6B + €4B+ public) — Quantum processors wired directly into European supercomputers — useful without fault tolerance, offloading optimisation, chemistry and cryptography workloads today | Startups: IQM Quantum, Pasqal, Riverlane, Multiverse Computing, Quantinuum, Planqc Enterprises: Airbus, BMW, BASF, Deutsche Telekom, Siemens, EDF |
4. Physical AI (~€2.1B) — Factory automation evolving from scripted pick-and-place to perception-rich, adaptive and eventually humanoid systems — using Europe's €2.5T manufacturing base as the world's richest physical AI training environment | Startups: PhysicsX, NEURA Robotics, Wandelbots, Agile Robots, Micropsi Industries, Einride Enterprises: Siemens, ABB, KUKA, Bosch, Volkswagen, Rolls-Royce |
5. Dual-use satellite intelligence (~€2.8B) — Climate EO satellites pivoting to real-time sovereign ISR — detecting rocket launches, active reactors and force movements invisible to optical sensors, day and night | Startups: ICEYE, SatVu, Constellr, Aerospacelab, Preligens, LiveEO Enterprises: Airbus Defence & Space, Thales Alenia Space, OHB, Leonardo, ESA |
6. Sovereign AI silicon (~€2.0B) — RISC-V, photonic and graphene chips for AI inference — solving Nvidia dependency, US export-control risk and data-centre energy cost simultaneously | Startups: Axelera AI, Olix, Black Semiconductor, Fractile, SiPearl, Paragraf, Lightium Enterprises: ASML, Infineon, STMicroelectronics, NXP, Arm, imec |
7. Launch sovereignty (~€1.1B + €902M ESA) — Rockets, re-entry vehicles and in-orbit transport giving Europe independent access to space | Startups: Isar Aerospace, The Exploration Co., HyImpulse, PLD Space, Infinite Orbits, Latitude Enterprises: ArianeGroup, Avio, Airbus, Thales Alenia Space, CNES, ESA |
8. Fusion enabling stack (~€0.8B) — HTS magnets, stellarators, laser-ICF and plasma simulation — anchored by the world's leading stellarator programme at Max Planck, now spinning out a Munich startup cluster | Startups: Proxima Fusion, Tokamak Energy, Marvel Fusion, Focused Energy, First Light Fusion, Gauss Fusion Enterprises: Siemens Energy, Rolls-Royce, EDF, Thales, Framatome, RWE |
9. Critical minerals circularity (~€0.35B + €6B EIB) — Recycling 100% of EV and defence battery materials to break EU dependency on Chinese-controlled lithium, cobalt and graphite — mandated by EU Battery Regulation 2023 | Startups: Cylib, Mecaware, LionVolt, Tulum Energy, Circu Li-ion, tozero Enterprises: BASF, Umicore, Veolia, Eramet, Boliden, Volkswagen |
What I find noticeable here:
AI is the new control layer for physical industry. The largest funding flows are no longer going into pure software AI — they're going into companies where AI controls expensive physical systems: drones, satellites, labs, factories, chips, molecules, energy. The moat is not the model. It is the coupling between AI and a physical system.
Defence is now the fastest de-risking mechanism in European deep tech — faster than any climate subsidy or grant. Companies founded on climate theses keep finding that a defence customer arrives first and pays more. ICEYE started with flood monitoring. SatVu with building energy audits. Constellr with crop water stress.
The strongest frontiers fuse at least three scientific disciplines. Pasteur's genius wasn't that he was a great chemist or a great biologist — it was that he was both, at the same moment, looking at the same flask. Software-defined warfare, molecular discovery, quantum-HPC — each fuse traditions that had no prior contact.
These 9 frontiers don't evolve in isolation. The most consequential breakthroughs will come from the moment a defence officer meets a photonics startup, a materials corporate talks to a self-driving lab, an investor backs a quantum team because a battery founder explained why they needed them. We built Deep Tech Momentum 2026 precisely for this: to accelerate innovation and commercialisation where deep tech frontiers collide.
This May in Berlin (20–21), we will run Europe's largest deep tech matchmaking programme (20,000+ 1:1s in two days!), a Deep Tech LP-GP marketplace, Europe's most relevant Deep Tech pitch competition (the DTM100), and several invite-only programmes. Spots are limited — and filling fast.
With the hope that your innovations come from different spheres — and that your wine is definitely not sour,
Martin
INTERVIEW
The Objective Is Simple: Increase Optionality, Reduce Dependency

As Head of BCG Central Europe, Michael Brigl operates at the intersection of industry, policy, and capital — focusing on the deeper questions: where industrial sovereignty will be built, which technologies will truly matter, and how Europe can set the terms of the next industrial era.
You launched "Wachstumspfade für Deutschland" (Feb 2026) at the Munich Security Conference. What made you choose that stage, and what was the reaction in the room?
– We chose the Munich Security Conference deliberately. Security today is not only shaped by military capability but increasingly by technological sovereignty and energy security. Launching our report there sent a strong signal: economic strength and technological leadership are central to sovereignty. The discussion quickly shifted from policy to execution: where are we exposed, what must we build, how we move faster. What struck me most was the response from the founders. There was a strong desire to engage – not just to debate strategy, but to discuss how to actually build. That energy told me we hit a nerve.
You’ve attached a €1.7 trillion number to this potential. To strip away the abstraction, if Germany executes perfectly, what is one specific, measurable difference a citizen or CEO will see in the German tech landscape by 2030?
– If Germany executes well, the difference by 2030 will be mostly visible in domestic value creation in critical technologies. Instead of importing core capabilities, we would build and scale AI infrastructure, advanced semiconductors, climate tech, and biotech here in Germany. This would show up in higher export volumes, more tech scale-ups valued at over €1 billion, and a greater share of strategic technologies produced locally. For CEOs, this means boosting their competitive advantage and strengthening their global position. For citizens and talents, it means high-skilled industrial jobs and globally relevant tech champions headquartered here.
Germany has experimented with innovation clusters before, with mixed results. What have you seen in Germany or elsewhere that distinguishes clusters that produce global companies?
– What matters now is focus and speed. We do not need more innovation clusters in Germany, but fewer and more powerful ones. Only then will they become powerhouses of transformation. Such clusters only produce global companies when they move beyond networking and create integrated “lab-to-fab” systems. The difference lies in five factors: tight concentration of research, production, and capital; anchor customers who create early demand; access to growth financing in the €20–200 million range; strong industrial integration; and governance that prioritizes speed and milestones over fragmented subsidies. If one element is missing, clusters remain strong research hubs but fail to scale globally. When all five come together, they become engines of global champions.
"Sovereignty" means different things to different audiences. How do you draw the line between building genuine European capability and inadvertently closing markets off?
– Sovereignty, as we define it, is not about isolation. It is about technological leadership. Only if Europe has the competencies to lead in critical technologies is sovereignty realistic. That means securing strategic capabilities in the critical layers of the value chain where dependency creates systemic risk, from compute infrastructure and advanced packaging to quantum and key energy technologies. At the same time, the application and commercial layers must remain open, competitive, and internationally integrated. The objective is simple: increase optionality, reduce dependency. Europe should be able to build and scale critical technologies while continuing to attract global partners and investment. True sovereignty means negotiating from strength, not closing doors.
THE PULSE
Deloitte Tech Trends 2026: The Great Rebuild

Source: Deloitte. Tech trends 2026.
Each year, Deloitte maps the structural shifts shaping enterprise technology. The Deloitte Tech Trends 2026 report is unusually clear: AI is no longer a layer—it is forcing a full rebuild of how companies operate, build, and scale technology.
1. The “Great Rebuild” is not optional—it’s already happening
Only 1% of organizations report no operating model changes underway, while 64% are increasing AI investments. Enterprise IT is moving from maintenance to reinvention. → Companies are not optimizing — they are rebuilding their core systems.
2. AI adoption is scaling at unprecedented speed
A leading AI tool reached 100M users in 2 months and now exceeds 800M weekly users (~10% of the global population). → Innovation cycles are compressing dramatically — what took decades now happens in months.
3. The agentic gap: hype vs. reality
Only 11% of companies have agentic AI in production, while 35% have no strategy at all and 42% are still defining one. → The bottleneck is not technology — it’s process redesign and architecture.
4. AI economics are breaking existing infrastructure models
Inference costs dropped 280x in two years, yet enterprise AI bills are reaching tens of millions per month due to usage explosion. → Companies are shifting toward hybrid architectures (cloud + on-prem + edge) to stay viable.
5. Innovation is compounding—and widening the gap
AI startups scale from $1M to $30M revenue 5x faster than SaaS predecessors, while knowledge cycles shrink from years to months. → The gap between leaders and laggards is no longer linear — it’s exponential.
DEEP TECH OPEN | SEMICONDUCTORS
Europe’s Top-5 Next-Gen Chip Builders | Seed ($0.25m-11m)

Synthara | Zurich, Switzerland
Technology: In-memory computing for ultra-efficient AI
Customers: Edge AI, IoT, industrial players
Use cases: Always-on AI in sensors, wearables, and embedded systems
Funding: ~$11M Seed-Round in June 2024 through investments and European and Swiss grants; led by Vsquared Ventures, with OTB Ventures, Hermann Hauser’s Onsight Ventures, Deep Tech Labs, along with existing investors such as High-Tech Gründerfonds, DeepIE, Excellis, ZKB and first investor and early believer Sandeep Raju.
Why it matters: Synthara collapses the boundary between memory and compute—reducing energy consumption by orders of magnitude.
→ In traditional chips, moving data consumes more energy than computing it. Synthara flips this logic by computing directly in memory, it tackles what engineers call the “memory wall,” one of the biggest bottlenecks in modern computing.
Semron | Dresden, Germany
Technology: Analog AI inference chips
Customers: Automotive, edge AI, industrial automation
Use cases: Real-time inference with minimal power draw
Funding: ~€7,3M Seed in January 2024 led by Capital and participated by SquareOne, OTB Ventures, Hermann Hauser (Onsight Ventures); total funding €10M.
Why it matters: Semron challenges the dominance of digital architectures by going analogue.
→ Semron’s analogue AI approach revives a paradigm largely abandoned decades ago. Ironically, what was once considered too imprecise for computing may now be the only viable path to energy-efficient AI at scale.
Menta | Sophia Antipolis, France
Technology: FPGA-based configurable chip architectures
Customers: Aerospace, defence, industrial systems
Use cases: Customizable chips without full ASIC development cycles
Funding: €7.5 million finance contract with European Investment Bank in 2022
Why it matters: Menta enables faster, more flexible chip design cycles—reducing dependence on costly, slow ASIC pipelines.
Frontgrade Gaisler | Gothenburg, Sweden
Technology: RISC-V based processor IP (space-grade & high-reliability systems)
Customers: Space, defence, critical infrastructure; contracts with ESA already
Use cases: Radiation-hardened processors for satellites and mission-critical compute
Funding: First Early-stage investment of €0,25M by Vinnova, Sweden's Innovation Agency
Why it matters: Gaisler is part of the growing European push toward sovereignty—reducing dependence on US-controlled architectures like ARM and x86.
Racyics | Dresden, Germany
Technology: Analogue/mixed-signal IC design (focus on high-reliability and application-specific chips)
Customers: Industrial, automotive, and specialised electronics applications
Use cases: Custom chip design for environments requiring robustness and efficiency
Funding: Early-stage and funded by public money and grants of about €5M
Why it matters: Racyics represents a different but important layer of the semiconductor stack: design capability rather than manufacturing.
→ Dresden is often referred to as “Silicon Saxony,” Europe’s largest microelectronics cluster, hosting over 2,000 companies and making it one of the few regions in Europe with a fully integrated chip ecosystem.
DTM OPPORTUNITIES
DTM × INAM: The First Advanced Materials Qualifier Is Open.
DTM26 and INAM — the Innovation Network for Advanced Materials — are launching the first-ever Advanced Materials Qualifier, and we're looking for the most promising startups shaping the future of materials innovation.
We're specifically seeking startups (raised <€5M) working on:
AI-driven materials discovery and informatics
Autonomous and self-driving laboratories
Circular polymers and bio-based alternatives
Packaging transformation and PPWR compliance
Two prizes up for grabs.
DTM Golden Ticket — including a main stage pitch slot at DTM26, curated 1:1 meetings with corporate buyers, and a fully equipped exhibition presence.
Wildcard Entry to AdMaCom 2026 — the leading acceleration programme for advanced materials startups, running since 2016. AdMaCom alumni have a survival rate of over 90% and have raised in excess of €300M combined. Runners-up receive discounted DTM tickets.
📅 30 April, 2026 👉 Apply here.
One Night. One Ticket Into Europe's #1 Deep Tech Marketplace.
Meet Gateway Factory — one of only 10 government-selected deep tech startup factories in Germany. Backed by RWTH Aachen, the University of Cologne, and Heinrich Heine University Düsseldorf, Gateway Factory connects 25+ early-stage programs, 1,000+ mentors, and 750+ investors — all with one mission: turn the Rhineland into Europe's next Deep Tech powerhouse.
They're bringing their boldest founders to a live stage for their Virtual Pitch Night. The stakes are real. One team walks away with the Full Wildcard into DTM26:
Golden Ticket to DTM26 + Spot in the DTM100 pitch competition + Startup booth at the marketplace.
*There's also an Audience Award — you vote, and the winner earns a feature in the next Moonitor magazine.
📍 22 April, 2026 | Online 👉 Ready to pitch? Or just want to watch and vote? Apply and register for free here.
🙋 Know someone ready to get their hands dirty in deep tech?
DTM26 is just around the corner — and we're opening up a limited number of volunteer spots for the next generation of founders, entrepreneurs, and innovators. So if you have a kid, cousin, intern, or eager graduate in your life who keeps saying they want to "get into tech" — this is the moment to put them to work.
📍 20–21 May, 2026 | Berlin 👉 Don't miss your spot — apply here. 💡 See more info on volunteering at DTM26 here.
ECOSYSTEM GIFT
Congrats, You Got Customers. Now Comes the Chaos.
Every startup has its "movie trailer" phase — fast cuts, coffee-fueled nights, a scrappy prototype held together by vibes and duct tape, and that magical moment when someone actually pays (!!!). Roll credits… right? Yeah, not even close. Because what comes next isn't a montage — it's the unglamorous sequel where things get weird. Org charts. Hiring decisions. Metrics. The creeping realization that "winging it" is no longer a strategy.
That's exactly where The Builder's Guide to the Tech Galaxy comes in. Together with Thomas Klugkist, Martin Schilling sat down with 100+ operators from Airbnb, Klarna, Salesforce, and Zalando and asked: "How do you actually build this thing properly?"
The result? Not inspiration. Ammunition. 99 concrete building blocks — leadership teams that work, North Star metrics that aren't vanity numbers, operating models that scale, momentum that doesn't burn everything down.
➔ We’re giving away one copy to the beloved DTM community. If you'd like it on your desk, simply reply to this email with “CHAOS”.
Last Week’s Winner: Congratulations to Lisa Langer on getting a spot in the PXR Fundraising Masterclass.
Thank you for reading this far. Here are two ways to grow closer to the Deep Tech Now community:
Become a Guardian of European Deep Tech: Are you a senior leader seeking commercial partnerships with Europe’s leading Deep Tech startups and SMEs? Successful applicants join Deep Tech Momentum’s Guardian network, receiving complimentary VIP access to our flagship event in May. Apply here.
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