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Why deep tech is leading Europe’s next startup wave
Deep tech leads in government funding, how Neko is bringing AI-powered healthcare to Europe, and more...
SearchVentures
April 30, 2025
Deep tech leads in EU govt. funding
The EU commission is backing more early-stage deep tech, climate tech, and biotech startups than ever but scaling remains the ecosystem’s biggest hurdle.
Why is Europe betting so heavily on deep tech?
This Week’s Trends
The EU commission is focusing the most on deep tech
How Neko is bringing AI-powered healthcare to Europe
VC team fallout and more
Read Time 3 minutes
The Startup Trend
Industries that the EU commission is focusing on
Deep tech leads in government funding with 1,485 early-stage companies being backed by the EU commission, followed by climate tech, biotech, and energy.
> 80% of EU-backed startups are building physical technologies, not software, a deliberate shift toward hard tech sectors traditionally underfunded by private VCs.
> These startups are graduating at higher rates when backed by the EU, but funding drops off fast beyond early stages, limiting their ability to scale.
💡 The EU has made a strong bet on frontier innovation but without more late-stage capital, most of these breakthroughs never leave the lab.
Startup Feature
How Neko Health Is Leading Europe’s Deep Tech Surge
Co-founders Daniel Ek and Hjalmar Nilsonne
Neko Health wants to change how healthcare starts. Founded in 2022 by Spotify founder Daniel Ek and serial entrepreneur Hjalmar Nilsonne, the Stockholm-based healthtech startup offers AI-driven body scans designed to detect illness before symptoms appear.
In January 2025, Neko raised a $260 million Series B led by Lightspeed Venture Partners, bringing its total funding to more than $325 million and valuing the startup at $1.8 billion. With clinics now operating in Stockholm and London, Neko is expanding rapidly as demand for deep tech healthcare accelerates across Europe.
From Music to Medicine
Spotify & Neko Health Co-founder Daniel Ek
After building one of the world’s largest consumer platforms Spotify, Daniel Ek turned his focus to health. He believes technology could shift healthcare from reactive to proactive, making it easier to prevent illness rather than just treat it.
Neko’s clinics use more than seventy sensors and AI analysis to conduct a non-invasive full-body scan in under ten minutes. The system collects 50 million data points and can detect early signs of heart disease, skin cancer, and inflammation. After the scan, patients receive a comprehensive health report and can follow up with a doctor if needed.
“We believe preventive care should be accessible, affordable and data-driven.”
The service is currently priced at 250 euros per scan and has seen overwhelming demand. Within months of opening in Sweden, Neko’s waitlist reached over 10,000 people with a now multi-year backlog of customers. The London clinic followed in 2024, part of a broader strategy to test new markets and establish a pan-European footprint.
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Deep Tech Is Moving Into Healthcare
Investors and founders in Europe are increasingly turning to complex, high-impact sectors like health and energy where deep tech can make a measurable difference.
The startup is backed by a mix of venture firms and family offices, including Daniel Ek’s investment company Prima Materia. With strong financial support and growing patient demand, Neko is now seen as one of the most valuable early-stage healthtech unicorn startups in Europe.
What sets Neko apart is its ability to apply consumer thinking to a healthcare problem. The clinics are built for ease of use, the results are delivered instantly, and the product feels closer to a wellness experience than a hospital visit.
“Our goal is to make this kind of checkup something people do regularly, not just when something is wrong.”
With healthcare systems under growing pressure to reduce long-term costs, Neko presents a new approach by combining hardware and deep tech to deliver preventive care at scale.
With plans to further expand across Europe to meet demand, Neko is building clinics that demonstrate how startups can play a key role in reshaping public services through innovation and accessibility.
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Is this startup the next billion dollar buyout?
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Past performance is not indicative of future results. Email may contain forward-looking statements. See US Offering for details. Informational purposes only.
Headline News
This Week In Startups ✍️
Founders
> Chipiron, a French deeptech startup, has raised $17 million in a Series A round to complete the development of its compact and lower-cost MRI system..
> eeden, a Münster-based German startup specializing in chemical textile recycling, has closed an €18 million Series A round.
> DePoly, a Swiss cleantech startup, has raised a $23 million Seed round to launch a 500-tonne-per-year plant in Switzerland, set to open in summer 2025.
Investors & VCs
> Sistafund, a women-focused VC based in Paris, pauses investments after Isabelle Gallo, one of the managing partners leaves the firm after two years.
> Hedosophia, a secretive London-based VC firm, has raised a $200 million dedicated secondaries fund according to Sifted.
> First Momentum, a German deeptech VC firm, which invests pre-seed cheques into technical founders, has raised €35 million for its second fund.
Cheers,
Odin Lund & Hari Mohandas
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