EIC and EU-level calls plus capital vehicles backing European deep-tech and defence

Europe’s deep-tech and defence innovation ecosystem is witnessing an unprecedented surge in early 2026, driven by the strategic alignment of EU-level blended financing, national funding boosts, specialized venture capital, pioneering quantum infrastructure, and emerging defence AI strategies. This multifaceted momentum is accelerating the commercialization of dual-use technologies while reinforcing Europe’s goals of technological sovereignty, industrial resilience, and global competitiveness in critical frontier sectors.

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Democratizing Quantum Hardware: Scaleway–AQT Pan-European Quantum Cloud Platform Launch

A landmark milestone was achieved on February 20, 2026, with the launch of the Scaleway and Alpine Quantum Technologies (AQT) pan-European quantum cloud platform. This initiative offers scalable, remote access to AQT’s proprietary IBEX Q1 neutral-atom quantum processors via Scaleway’s cloud infrastructure.

• By significantly lowering financial and technical barriers, this platform empowers startups, research institutions, and corporate innovators across Europe to develop, test, and refine quantum algorithms without the need for costly on-site quantum hardware.
• A Scaleway spokesperson underlined the strategic importance:
  “Our partnership with AQT is a critical step toward democratizing quantum computing access in Europe, accelerating innovation cycles, and fostering pan-European collaboration aligned with EU quantum sovereignty objectives.”
• This platform directly supports EU priorities outlined in Horizon Europe and the European Innovation Council (EIC), strengthening sovereign quantum capabilities and enabling cross-border quantum research and development.
• The cloud-based infrastructure is expected to catalyze faster innovation, cross-sector application development, and bolster Europe’s growing quantum ecosystem on the global stage.

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Financing Deep-Tech and Dual-Use Innovation: Expanded Capital Flows and National Commitments

Europe’s deep-tech financing ecosystem continues to expand robustly, fueled by a synergistic mix of EIC and Horizon Europe blended finance programmes, increasing national investments, and specialist venture capital vehicles:

• The 2027 EIC Work Programme escalates strategic support for sectors including quantum computing, photonics, AI autonomy, and semiconductor manufacturing, reinforcing Europe’s technological sovereignty ambitions.
• Notable funding rounds illustrate the ecosystem’s vitality:
  • Pasqal, a French quantum hardware pioneer, is finalizing a ~€200 million funding round, positioning it on the cusp of unicorn status and fast-tracking commercialization of neutral-atom processors.
  • CubaseBio secured €5.9 million to advance its 3D spatial biology platform with applications in defence and dual-use technologies.
  • Quantcore, spun out from the University of Glasgow, raised £2.5 million to develop quantum sensors and processors, with plans to add 12 jobs within 18 months.
• Specialist venture capital funds continue to fuel growth:
  • Quantonation’s €220 million fund targets foundational quantum and photonics tech.
  • Baltic Innovation Fund III (€225 million) focuses on scaling deep-tech startups aligned with European strategic autonomy.
  • Mundi Ventures’ €750 million growth fund backs scaling companies in semiconductors, robotics, and photonics.
  • Cross-border vehicles like OVNI Capital facilitate transatlantic investments, extending European startups’ global reach.
• A transformative development is Germany’s ~€1.6 billion deep-tech funding commitment, significantly amplifying pan-European capital flows. This injection underscores the critical role of science-based startups in Europe’s innovation ecosystem and complements existing EU-level instruments and VC pools.

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Quantum Technology Advances: Hardware, Algorithms, and Networks

Quantum technology remains central to Europe’s deep-tech agenda, with recent advances spanning hardware, software, and network infrastructure:

• Innovations in quantum algorithmic efficiency have reduced reliance on expensive non-Clifford gates, optimizing hardware use and lowering quantum operational costs—key steps toward practical quantum advantage.
• The QCyber joint research initiative progresses steadily in building secure multi-user quantum networks, addressing vital needs for trusted quantum communications in defence, cybersecurity, and critical infrastructure.
• The Scaleway–AQT cloud platform democratizes access to neutral-atom quantum processors, while Pasqal’s near-completed €200 million round promises accelerated commercialization of scalable quantum hardware.
• Software and fault-tolerance collaborations enhance Europe’s quantum stack:
  • The integration of Xanadu’s PennyLane quantum software with the Munich Quantum Toolkit improves quantum algorithm compilation and deployment across diverse hardware.
  • The partnership between Quobly (France) and Entropica Labs (Singapore) targets robust quantum error correction and scalable architectures, fundamental for fault-tolerant quantum computing.
• New research from the University of Luxembourg introduced a novel method to guide quantum systems before decoherence, potentially improving quantum system stability and control—an advancement critical for longer-lasting and more reliable quantum operations.

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Expanding Applications: Quantum Feature Extraction and Defence AI Strategies

The quantum ecosystem’s expansion into real-world applications and defence is evident through recent breakthroughs and strategic national policies:

• Kipu Quantum demonstrated quantum feature extraction techniques to improve satellite image classification, showcasing quantum computing’s potential to enhance data processing for earth observation and defence intelligence.
• In parallel, Italy unveiled a national defence AI strategy prioritizing rapid AI integration across its military systems to boost operational capabilities, situational awareness, and autonomous decision-making—highlighting Europe’s increasing focus on AI-driven defence innovation.
• These developments underscore Europe’s commitment to marrying frontier quantum capabilities with AI and data analytics to develop next-generation dual-use technologies.

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Ecosystem Connectivity: Investor Matchmaking and Academia-Industry Collaboration

Strengthening connections between innovators and investors remains a priority:

• The Deeptech AI Investor Matchmaking Event (AIC4NL) successfully linked AI-driven deep-tech startups and spin-offs with specialized investors, enabling strategic partnerships that accelerate technology transfer and commercialization.
• These matchmaking forums foster cross-border investment flows and pan-European networking essential for scaling deep-tech companies from research to market.
• Democratized quantum hardware access via the Scaleway–AQT cloud platform, combined with growing academia-industry collaborations, creates fertile ground for interdisciplinary innovation and knowledge exchange.
• Such initiatives boost investor confidence and underpin sustainable capital availability crucial for frontier technology development.

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Financing Trends and Market Insights: APEX Ventures February Newsletter

The latest APEX Ventures February Newsletter highlights key themes in deep-tech financing trends:

• Continued growth in blended finance instruments combining public grants with private venture capital to de-risk early-stage innovation.
• Increased focus on sector-specific funds targeting quantum, photonics, AI, and semiconductor technologies, reflecting strategic European priorities.
• Emphasis on cross-border investment vehicles to facilitate scaling and international market access for European deep-tech startups.
• Growing alignment between public policy, capital markets, and innovation ecosystems, enabling more efficient deployment of resources toward sovereign technology capabilities.

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Strategic Implications: Building a Resilient and Sovereign European Deep-Tech Ecosystem

The convergence of expanded EU blended financing, large national funding injections, specialized venture capital, cutting-edge quantum infrastructure, and emerging defence AI strategies is forging a resilient and sovereign European deep-tech and defence innovation ecosystem. Key takeaways include:

• Accelerated commercialization through democratized hardware access and de-risked financing shortens innovation cycles and expedites market entry.
• Enhanced regional innovation clusters, supported by funds like Baltic Innovation Fund III and Germany’s major national commitment, strengthen Europe’s technological sovereignty and supply chain resilience.
• Broadened academia-industry collaboration fostered by cloud platforms and investor matchmaking events encourages interdisciplinary innovation and knowledge transfer.
• Sustained investor confidence, reflected in growing fund sizes and disciplined VC dynamics, ensures ongoing capital flows into frontier technologies.
• Strategic integration of quantum, AI, and dual-use technologies positions Europe as a competitive global player in critical sectors such as quantum computing, photonics, AI autonomy, semiconductors, and defence.

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Current Status and Outlook

• February 2026: Launch of the Scaleway–AQT pan-European quantum cloud platform, democratizing access to neutral-atom quantum processors.
• Near completion of Pasqal’s ~€200 million funding round, accelerating quantum hardware commercialization.
• Quantcore’s £2.5 million funding round supporting quantum sensors and processors.
• Integration of Xanadu’s PennyLane with the Munich Quantum Toolkit, advancing quantum software capabilities.
• Quobly–Entropica Labs partnership progressing on fault-tolerant quantum computing.
• University of Luxembourg’s breakthrough in quantum system control before decoherence.
• Demonstration by Kipu Quantum of quantum-enhanced satellite image classification.
• Italy’s launch of a national AI defence strategy, emphasizing autonomous and AI-driven military capabilities.
• Continued growth of specialist VC funds: Quantonation (€220 million), Baltic Innovation Fund III (€225 million), Mundi Ventures (€750 million), OVNI Capital.
• Steady progress in the QCyber secure quantum network initiative.
• Expanded EIC and Horizon Europe support under the 2027 Work Programme.
• Successful Deeptech AI Investor Matchmaking (AIC4NL) event strengthening investor-founder networks.
• Germany’s landmark ~€1.6 billion deep-tech funding commitment energizing Europe’s science-based startup ecosystem.
• Public-private collaboration exemplified by CubaseBio’s €5.9 million round.

Europe’s deep-tech and defence innovation landscape is on a robust upward trajectory, underpinned by a strategic fusion of public funding, specialist private capital, frontier quantum infrastructure, and policy-driven investor engagement. This integrated framework is laying the foundation for Europe’s sustained leadership and industrial strength in critical technology domains well into the future.