Elaia & Proxima Fusion Target Deep Tech Growth in Europe, 2026

LONDON, March 12, 2026 — Europe’s deep tech sector has received a significant boost as Elaia, a prominent deep tech investor, announced the closing of its third seed fund, DTS3, at €134 million. The fund, which is designed to back early-stage B2B startups emerging from Europe's leading research institutions, is double the size of Elaia's previous funds, reflecting increased investor confidence in the region's academic and technological potential.

Executive Summary

• Elaia closes its €134M DTS3 fund to support pre-seed and seed-stage deep tech startups in Europe.
• The fund focuses on transforming academic research into scalable businesses in areas like fusion power, AI, and life sciences.
• Key partnerships include leading institutions such as PSL Université, INRIA, CNRS, and the Max Planck Foundation.
• Portfolio highlights include Proxima Fusion (fusion energy), GetVocal (AI conversational agents), and Biophta (ophthalmic innovation).

Key Developments

Elaia’s €134 million DTS3 fund is aimed at fostering Europe’s deep tech ecosystem by supporting startups at the intersection of advanced academic research and commercial viability. The fund, finalized after its initial €60 million close in March 2024, has already invested in 11 startups spanning computing, life sciences, and industrial innovation. The initiative demonstrates a rising belief in Europe’s ability to convert scientific breakthroughs into global companies.

Among the notable startups already backed by DTS3 are Proxima Fusion, a German company developing stellarator-based fusion power plants, and GetVocal, a French AI-powered conversational agent specialist focused on enterprise customer support. Other investments include Switzerland-based Mimic, which is bringing physical intelligence to factory environments, and Biophta, a French startup working on advanced ophthalmic treatments for eye conditions such as glaucoma and macular edema.

The fund’s pan-European scope targets key scientific hubs in France, Germany, Spain, the UK, and Switzerland, while remaining open to emerging research clusters across the continent. According to Elaia, the fund plans to invest between €1 million and €13 million per company, guiding founders from early innovation stages to initial scaling phases.

Market Context

Europe’s deep tech sector is experiencing a growing wave of momentum as institutional investors, governments, and research institutions converge to address industrial, scientific, and infrastructure challenges. Elaia’s DTS3 fund is an example of how Europe is positioning itself as a leader in areas such as quantum computing, AI, robotics, energy, and life sciences. This shift is driven by increasing government support and private sector initiatives aimed at bridging the gap between laboratory research and market-ready products.

Notably, Elaia’s previous deep tech funds have already demonstrated success with exits such as Gleamer, an AI-powered medical imaging company acquired by RadNet for $230 million, and Mablink Bioscience, which was acquired by Eli Lilly. The firm’s track record underscores the potential for Europe to become a global hub for deep tech innovation.

BUSINESS 2.0 Analysis

The closing of Elaia’s €134 million DTS3 fund highlights a pivotal moment for Europe’s deep tech ecosystem. Unlike traditional tech sectors, deep tech requires long-term investment cycles and strong collaborations between academia and industry. Elaia’s strategy of partnering with renowned institutions such as PSL Université, CNRS, and the Barcelona Supercomputing Center positions it as a bridge between groundbreaking research and commercial scalability.

Elaia’s focus on fusion energy via Proxima Fusion is particularly noteworthy. Fusion energy has long been seen as the “holy grail” of clean energy solutions, yet commercial viability has remained elusive. By supporting stellarator-based fusion technology, Elaia is betting on a concept that could redefine global energy markets by the 2030s.

Meanwhile, investments in AI-driven startups like GetVocal and life sciences innovators like Biophta showcase the diversity of Europe’s deep tech strengths. These companies are addressing pressing challenges in customer support automation and non-invasive medical treatments, respectively, illustrating how deep tech innovation extends beyond energy and computing into everyday applications.

Why This Matters for Industry Stakeholders

For investors, Elaia’s fund represents a rare opportunity to enter the deep tech space at its earliest stages, where the potential for outsized returns is significant. For research institutions, the fund provides a pathway to commercialize groundbreaking scientific discoveries, while startups gain access to not only funding but also expertise and strategic guidance. Policymakers should also take note, as funds like DTS3 align with broader goals of European technological sovereignty and economic competitiveness.

Forward Outlook

Looking ahead, Elaia’s DTS3 fund is likely to set the standard for future deep tech investments in Europe. As the fund deploys capital across its target sectors, its success will depend on its ability to navigate the unique challenges of deep tech, such as long development cycles and regulatory hurdles. Additionally, the fund’s focus on fusion energy, quantum computing, and AI aligns with global megatrends that are expected to shape the next decade.

While the €134 million fund is substantial, Europe’s deep tech sector will require sustained investment from both public and private sources to compete with the scale of innovation seen in the United States and Asia. Nonetheless, Elaia’s track record and strategic partnerships suggest that this latest initiative is well-positioned to make a significant impact.

Key Takeaways

• Elaia closes €134M DTS3 fund to back early-stage deep tech startups in Europe.
• Focus areas include fusion energy, AI, robotics, and life sciences.
• Key investments include Proxima Fusion, GetVocal, and Biophta.
• Partners include PSL Université, INRIA, CNRS, and Max Planck Foundation.
• Fund aims to strengthen Europe’s position as a global hub for deep tech innovation.

References

1. Source: TechFundingNews
2. Bloomberg
3. Financial Times

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