The hum of servers filled the air as the lead engineer, Anya Sharma, stared at the thermal readings. It was late December 2025, and another build was failing. “Damn,” she muttered, the glow of the monitors reflecting in her eyes. The team at QuantumLeap, a deep tech spinout from ETH Zurich, was racing to finalize its Q3 M300 chip design. They were chasing the 2026 launch date, but supply chain bottlenecks, particularly for advanced packaging, were a constant headache.
According to the recent Dealroom European Spinout Report 2025, QuantumLeap was not alone in its struggles, or its successes. The report revealed that 76 European deep tech and life sciences spinouts had reached either $1 billion valuations, $100 million in revenue, or both. The data, released on December 30, 2025, painted a picture of a sector undergoing explosive growth.
“It’s a validation of the deep tech model,” commented Dr. Ingrid Meyer, a senior analyst at Nordea Markets, during a hastily arranged briefing. “Universities are becoming engines of innovation, and venture capital is flowing in to capitalize on it. The key is to commercialize the underlying science. That’s the challenge.” She paused, then added, “And, of course, the geopolitical situation adds another layer of complexity.”
The geopolitical layer, in this case, meant export controls. QuantumLeap, like many European startups, was reliant on non-European suppliers for critical components. The U.S. restrictions on chip exports to China had a ripple effect, tightening the market and driving up costs. The team, meanwhile, was also grappling with the fact that Chinese companies were now their competitors. It was a race against time and policy.
The M300, based on a novel architecture, was designed to compete with the latest generation of GPUs. The projected performance gains were significant, but manufacturing was the hurdle. QuantumLeap had originally planned to use TSMC, but the U.S. export controls and supply chain bottlenecks pushed them to evaluate SMIC, which would mean significant design changes and delays. Or maybe that’s how the supply shock reads from here.
The company’s CEO, Michael Bauer, was on a call with investors. His voice was calm, but the tension was palpable. “We are navigating the headwinds,” he said, “and staying focused on the 2026 launch.” The market was volatile, and the pressure was on, especially considering the valuation targets. The company was aiming for $150 million in revenue by the end of 2026.
The Dealroom report highlighted the diversity of the successful spinouts. While some focused on AI and machine learning, others were in areas like advanced materials, biotech, and quantum computing. The common thread was a foundation of cutting-edge research and a willingness to take on the challenges of commercialization. The report also noted the importance of government support, with various European countries investing heavily in research and development.
Back in the lab, Anya tapped at her keyboard, trying to optimize the thermal management of the M300. The clock was ticking. The engineers had to fix the chip before the end of the year, or else lose their place in the market. The stakes were high, but the potential was even higher. After all, the European deep tech sector was booming.
About the Author
