At Hello Tomorrow 2025, Guillaume Meulle, Managing Partner at XAnge, took the stage to deliver a direct and essential message: yes, Deep Tech can generate performance—but only if we build the right ecosystem around it.
In this article, we share the key takeaways from his talk and XAnge’s conviction behind Europe’s next wave of breakthrough startups.
1. Performance Means Cash-on-Cash, Not Just Scientific Brilliance
For Guillaume, the question is not rhetorical: is Deep Tech ready to generate performance? He defined performance clearly: cash-on-cash returns to LPs. Not just scientific beauty. Not just patents or media coverage. But tangible exits and value creation.
Historically, Deep Tech suffered from weak returns in venture capital. Many funds—including XAnge—shifted their focus toward digital and SaaS in the past decade. But a structural shift is underway.
“2022 is to Deep Tech what 2012 was to SaaS and fintech. The wave is coming—and this time, it’s foundational.”
2. Why Deep Tech, and Why Now?
XAnge sees three strong signals that Deep Tech is entering a new phase:
Foundational Technology Waves
We are living through the emergence of 2 general-purpose technologies: AI and synthetic biology. These technologies, like electricity or the printing press, have the power to reshape entire industries—climate, health, manufacturing, and beyond.
Europe's Deep and Evolving Talent Pool
Over one million students graduate from STEM programs in Europe every year—more than in the U.S. And increasingly, they are not only scientists but entrepreneurs. With entrepreneurial programs embedded in engineering schools across Europe, the startup mindset is spreading across labs and technical teams.
“We now have dozens of ‘Fred Terman’ figures across Europe—scientists teaching startups, not just science.”
Lower Entry Barriers
Open-source software, CRISPR, cheap computing and infrastructure—Deep Tech no longer requires billions to get started. Startups like Sirona, a direct air capture company, are building and iterating new hardware every few months. This level of velocity was unthinkable in Deep Tech just a decade ago.
3. What We Look for in a Deep Tech Company
At XAnge, Deep Tech now represents one-third of our portfolio. But not all innovations are equal. We look for:
- Fundraising Ability
Deep Tech founders must raise multiple rounds to bring their vision to life. The ability to tell a compelling story and align investors behind a long-term roadmap is critical. - Short Iteration Cycles
We want to see teams that test, deploy, and learn—fast. Sirona, for example, has gone from 1kg to 15 tons of CO₂ captured per machine in 18 months, iterating every three to four months. - Full-Stack Product Vision
We invest in founders who build and deliver the entire solution—not just a component. Planetary (microbial fermentation) and IO SpaceLab (satellite constellations) are examples of startups controlling everything from infrastructure to customer delivery, enabling faster learning and stronger market pull.
“We don’t back technologies. We back products. If you’re not in a customer’s hands, you’re not learning fast enough.”
4. What’s Missing: Growth Capital, M&A, and Patient LPs
Despite real momentum, exits remain rare. In France, only two out of 34 unicorns are Deep Tech . To change that, Guillaume highlighted three priorities:
1. Attracting Growth & Late-Stage Capital
Growth funds transformed digital VC performance in the past decade. Now, they must do the same for Deep Tech — providing liquidity, follow-on capital, and credibility.
2. Activating European Tech Corporates
Europe has the advantage of large, global industrial players. But most are still passive in startup M&A. This must change. Corporate acquisitions will be essential to enable deeptech liquidity at scale.
3. Long-Term LP Commitment
Deep Tech requires long-term vision. LPs who move in and out of the asset class create instability. On the contrary, consistent LP partners help build the ecosystem and raise the standard for VCs themselves.
“It takes a village to build this asset class—visionary founders, strong investors, active corporates, and long-term LPs.”
The XAnge Perspective
We believe Europe has the raw ingredients for Deep Tech leadership: scientific excellence, entrepreneurial energy, and growing investor interest. But to generate performance, we must combine scientific ambition with business clarity, short cycles, and full-stack delivery.
XAnge has been investing in deeptech since its creation. We’ve already backed Deep Tech startups in climate, synthetic biology, advanced materials, and space. Today, it represents more than 30% of our active portfolio—and remains one of our highest-priority investment areas for the coming decade.
Because the next European tech leaders won’t just be digital—they’ll be deep.
