Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: €134M Elaia fund targets fusion, AI from Europe’s top labs — TFN in Simple Termsand what it means for users..
Europe’s deep tech ecosystem has received a major boost as Elaia announced the final close of its third deep tech seed fund, DTS3, at €134 million. The new vehicle is twice the size of Elaia’s previous deep tech funds, reflecting rising investor confidence in Europe’s ability to transform academic breakthroughs into global companies.
Focused on pre-seed and seed-stage B2B startups, the fund will support companies emerging from some of Europe’s most influential research institutions. Elaia has partnered with organisations such as PSL Université, INRIA, CNRS, the Barcelona Supercomputing Center, and the Max Planck Foundation, aiming to strengthen the link between scientific discovery and commercial scale.
The strategy signals a growing belief that Europe’s research ecosystem is becoming a fertile ground for companies capable of tackling large industrial, scientific, and infrastructure challenges.
From research labs to global companies
Elaia has spent more than two decades backing technology companies built on scientific breakthroughs. Its previous deep tech initiatives have already produced notable success stories.
Among them are Aqemia, a company applying advanced computational models to drug discovery, and Alice & Bob, which is developing fault-tolerant quantum computing. Another example is Gleamer, whose AI-powered medical imaging technology was recently acquired by RadNet for $230 million. Meanwhile, Mablink Bioscience, specialising in antibody-drug conjugates, was acquired by Eli Lilly.
These outcomes illustrate the firm’s model: supporting founders from early-stage research through to global scale or strategic exits. By focusing on companies born in laboratories and research centres, Elaia positions itself at the earliest stage of innovation cycles where breakthroughs are first translated into viable products.
Early momentum across Europe
Although the fund reached its final close recently, investment activity has already begun. Since its first close of €60 million in March 2024, DTS3 has backed 11 startups working across computing, life sciences, and industrial innovation.
The early portfolio highlights Europe’s diversity of deep tech strengths.
One example is Proxima Fusion in Germany, which is developing stellarator-based fusion power plants aimed at delivering clean, stable energy by the 2030s. If successful, the technology could play a crucial role in establishing Europe as a leader in commercial fusion energy.
In France, GetVocal is building fully auditable conversational agents designed for enterprise customer support. The technology allows companies to combine human teams with automated systems while maintaining transparency and oversight.
Another portfolio company, Biophta, is developing a topical ophthalmic insert designed to replace frequent eye drops and invasive injections for conditions such as glaucoma and macular edema.
DTS3 is also supporting companies such as Mimic in Switzerland, which focuses on bringing physical intelligence to factory environments.
A pan-European push for deep tech
The fund will invest across Europe’s key scientific hubs, including France, Germany, Spain, the United Kingdom, and Switzerland, while remaining open to emerging research clusters across the continent.
DTS3 plans to deploy €1 million to €13 million per company, allowing Elaia to partner with founders at the earliest stages and support them through initial scaling phases.
The fund has attracted backing from both longstanding and new institutional partners, including Bpifrance, PSL Université, INRIA, BNP Paribas, Institut Pasteur, MGEN, MACSF, and Famille C Participations, alongside support from Lazard Frères Gestion during the fundraising process.
Looking ahead, DTS3 will focus on three strategic areas shaping the next wave of European innovation: the future of computing (including AI, cybersecurity, semiconductors and quantum technologies), the future of industry (robotics, materials, energy and physical intelligence), and the future of life sciences (biotechnology, medical devices and digital health).
With €1 billion under management and a portfolio of more than 100 startups, Elaia continues to position itself as one of Europe’s most active investors in science-led innovation. Through DTS3, the firm is placing a long-term bet on researchers and founders working to build the next generation of deep tech companies.
“DTS3 builds on a partnership model we pioneered through the PSL Innovation Fund and Elaia Alpha II Fund, which has already produced notable outcomes including Aqemia, Alice&Bob, and Mablink Bioscience, acquired by Eli Lilly,” said Anne-Sophie Carrese, Partner at Elaia. “These partnerships with Europe’s top research institutions give us early visibility into breakthrough technologies and exceptional founding teams. After nearly two decades backing deep tech founders, we’re seeing an acceleration of innovation that rivals any ecosystem in the world. From Zurich to Paris with hubs emerging across the continent, European deep tech is reaching escape velocity.”
“Deep tech investing is in Elaia’s DNA; our track record across our previous funds validates that this is the moment to scale,” said Xavier Lazarus, Managing Partner at Elaia. “DTS3 reflects our international ambition: we’re backing founders across Europe, and our growing investor network reflects this geographic mix. The strong presence of repeat investors confirms our approach is working. We’re in an intense deployment phase and eager to meet ambitious entrepreneurs building Europe’s next generation of deep tech companies.”