The European VC (EUVC)
E705 | Martin Schilling, Deep Tech Momentum: Why Europe’s Deep Tech Problem Isn’t Funding
The European VC (EUVC)
•March 4, 2026•47 min
0
The European VC (EUVC)•Mar 4, 2026
Why It Matters
Without stronger corporate‑startup ties, Europe risks continuing to export its deep‑tech breakthroughs while missing out on the economic value of scaling them at home. The episode’s insights are timely as policymakers and investors push for a more sovereign, high‑growth tech sector, and they offer a roadmap for companies to capture the next generation of European deep‑tech champions.
Key Takeaways
- •Europe excels in deep‑tech research but lacks commercialization pathways
- •Large European corporates are older, less startup‑friendly than US peers
- •US firms acquire twice as many European deep‑tech startups
- •CEO‑driven corporate engagement is essential for P&L impact collaborations
- •Deep Tech Momentum targets 10,000 enterprise contracts to boost scaling
Pulse Analysis
Europe’s deep‑tech ecosystem boasts world‑class research institutions and a growing pipeline of university spin‑outs, yet the continent consistently falls short in turning breakthroughs into market‑ready businesses. The average age of the top ten European companies by market capitalisation is nearly 90 years, compared with roughly 30 years in the United States, indicating entrenched, legacy corporates that are slower to adopt external innovation. Acquisition data reinforces the gap: U.S. firms buy three to four startups per year on average, while European giants manage only one to two, and more than 70 % of European deep‑tech exits are acquired by U.S. buyers.
Experts argue that the missing piece is not capital but corporate engagement, and that this engagement must be driven from the C‑suite. CEOs need to champion startup collaborations that deliver clear P&L impact—either new revenue streams or cost reductions—within a 9‑12‑month horizon. Trust remains a barrier; procurement cycles often outlast a startup’s runway, prompting doubts about reliability. Venture‑client models and emerging “Neo‑Prime” system integrators, such as the defence‑sector players and fintechs like N26, illustrate how large firms can act as both customers and acquirers, accelerating scale‑up.
To close the commercialization gap, Deep Tech Momentum (DTM) is building Europe’s first deep‑tech innovation marketplace, pairing corporate buyers with high‑potential startups while providing financing and event‑driven matchmaking. Its twin objectives—unlocking an additional €100 billion of capital and securing 10,000 enterprise contracts—reflect a buyer‑first philosophy: once corporates are on‑site, startups follow, and investors gain access to validated commercial pipelines. By aligning funding, demand, and ecosystem support, DTM aims to replicate the Silicon Valley model of rapid acquisition and integration, positioning Europe to produce the next SAP or ASML within a generation.
Episode Description
Europe does not have a deep tech problem. It has a commercialisation problem.
The last European companies to reach €100B+ market caps were SAP and ASML, both founded 40–50 years ago. If Europe wants a new generation of deep tech champions, venture capital alone won’t get us there. Customers have to step in.
In this episode, Andreas Munk Holm is joined by Martin Schilling, former operator, investor, and founder of Deep Tech Momentum, to unpack why Europe excels at funding breakthroughs, but consistently fails to industrialise them.
This is a conversation about:
why enterprise buyers are the missing link in European deep tech
what corporates are doing wrong (and how they can fix it)
how founders actually win large customers in complex, regulated markets
and why courage — not grants — is Europe’s real constraint
Share
🎧 Here’s what’s covered:
01:15 Martin’s background: from N26 operator to deep tech ecosystem builder
01:52 What is Deep Tech Momentum (DTM)?
03:00 Why commercialisation — not capital — is the real bottleneck
04:19 The age gap: Europe’s top companies vs the US
06:26 Why US corporates acquire twice as many startups as Europe
06:54 The uncomfortable truth: Europe funds innovation others industrialise
08:54 Why corporates (not just VCs) must change behaviour
10:49 Neo-primes: the new system integrators Europe desperately needs
12:50 The four things corporates must fix to work with startups
15:06 Why startup collaboration must be CEO-owned
17:14 Buyers first: why conferences get this wrong
19:03 Money + customers: the only two things founders really need
21:27Trust, speed, and why procurement kills startups
23:25 Why trust starts inside the corporate, not with founders
27:03 Selling deep tech to enterprises & governments: what actually works
32:03 When CVCs help — and when they hurt
33:08 Enterprise sales mistakes founders keep making
38:28 Deep tech sales reality: defense, policy, and long cycles
44:57 Why DTM is not EU-funded — by design
49:07 The state’s real role: customer, not grant machine
49:23 Final takeaway: Europe needs courage, not more programs
Show Notes
0
Comments
Want to join the conversation?
Loading comments...