Deeptech and Healthtech Convergence Grows in Europe
A new analysis signals a growing convergence of deeptech and healthtech startups in Europe. The trend is reportedly driven by university research spinouts and public-private partnerships, with investors favoring longer fund cycles to accommodate the extended development timelines common in these sectors.
- Deeptech and life sciences spinouts from European universities have a combined value of $398 billion, creating over 167,000 jobs across more than 7,300 startups. Since 2015, value creation from these spinouts has accelerated, with 39% of the total value coming from companies founded after that year. - In 2024, the Turkish startup ecosystem saw a significant increase in investment, with total deal volume reaching $2.6 billion, a substantial rise from $497 million in 2023. Seed-stage investments dominated in terms of the number of deals, accounting for approximately 85% of the 331 total deals. - Turkey's generative AI market in healthcare was valued at approximately $128.16 million in 2024 and is projected to grow to $546.31 million by 2033. The country is seeing pragmatic adoption of AI in healthcare, with a focus on operational pilots in areas like radiology and patient-flow management, achieving 85-90% accuracy in imaging. - Despite Europe's strength in deeptech research, it lags behind the U.S. in commercialization and investment, securing just €58 billion in funding over the past five years compared to €215 billion in the U.S. Bureaucratic hurdles, such as the 12-18 month wait for European Innovation Council (EIC) funds, slow down the progress of early-stage ventures. - The Turkish government is actively fostering a favorable environment for technological innovation through initiatives like the Digital Transformation Office, which is developing a national AI strategy, and the Tech Visa Program, designed to attract tech talent and startups. The TÜBİTAK BiGG Fund, a pre-seed fund, made 231 investments in 2024 and 101 in the first half of 2025. - In the first nine months of 2025, Turkish startups secured $475 million in funding across 240 deals, with fintech leading in investment volume at $197.9 million. Health and biotechnology were among the top sectors in terms of the number of deals. - A significant challenge in the European deeptech ecosystem is the "valley of death," the gap between research and market viability, which is exacerbated by a lack of venture capital for scaling. While public grants help with initial development, they are often insufficient for long-term growth. - The Turkish startup ecosystem has demonstrated resilience, with increases in both the number of deals and total funding in 2024, contrary to global trends of declining entrepreneurial activity. The number of deals grew from 297 in 2023 to 331 in 2024.
