Europe does not have a deep tech problem. It has a commercialisation problem.
The last European companies to reach €100B+ market caps were SAP and ASML, both founded 40–50 years ago. If Europe wants a new generation of deep tech champions, venture capital alone won’t get us there. Customers have to step in.
In this episode, Andreas Munk Holm is joined by Martin Schilling, former operator, investor, and founder of Deep Tech Momentum, to unpack why Europe excels at funding breakthroughs, but consistently fails to industrialise them.
This is a conversation about:
why enterprise buyers are the missing link in European deep tech
what corporates are doing wrong (and how they can fix it)
how founders actually win large customers in complex, regulated markets
and why courage — not grants — is Europe’s real constraint
🎧 Here’s what’s covered:
01:15 Martin’s background: from N26 operator to deep tech ecosystem builder
01:52 What is Deep Tech Momentum (DTM)?
03:00 Why commercialisation — not capital — is the real bottleneck
04:19 The age gap: Europe’s top companies vs the US
06:26 Why US corporates acquire twice as many startups as Europe
06:54 The uncomfortable truth: Europe funds innovation others industrialise
08:54 Why corporates (not just VCs) must change behaviour
10:49 Neo-primes: the new system integrators Europe desperately needs
12:50 The four things corporates must fix to work with startups
15:06 Why startup collaboration must be CEO-owned
17:14 Buyers first: why conferences get this wrong
19:03 Money + customers: the only two things founders really need
21:27 Trust, speed, and why procurement kills startups
23:25 Why trust starts inside the corporate, not with founders
27:03 Selling deep tech to enterprises & governments: what actually works
32:03 When CVCs help — and when they hurt
33:08 Enterprise sales mistakes founders keep making
38:28 Deep tech sales reality: defense, policy, and long cycles
44:57 Why DTM is not EU-funded — by design
49:07 The state’s real role: customer, not grant machine
49:23 Final takeaway: Europe needs courage, not more programs
🎧 Listen on Apple or Spotify, or queue it for later with chapters ready to go.
✍️ Show Notes
Europe’s Deep Tech Bottleneck Isn’t Science — It’s Demand
Europe has world-class research in:
quantum
robotics
biotech
advanced materials
space & defense
What it lacks is enterprise pull.
As Martin puts it:
“Europe funds breakthroughs — and others industrialise them.”
The result:
European deep tech startups scale slower
exits skew toward US acquirers
capital recycles out of the continent
This isn’t new — but it’s now existential.
The Age Problem No One Talks About
One of the most striking stats Martin shares:
Top 10 European companies by market cap: average age ~87 years
Top 10 US companies: average age ~30–35 years
Why this matters:
younger companies collaborate more easily with startups
older corporates accumulate bureaucracy, risk aversion, and procurement drag
acquisition and partnership muscle atrophies over time
In the US, Fortune 500 companies acquire 2x more startups than their European counterparts. Silicon Valley giants acquire 10–20x more.
That difference alone reshapes ecosystems.
Neo-Primes: Europe’s Missing Layer
Martin introduces the idea of “neo-primes” — modern system integrators that:
assemble deep tech into deployable products
act as customers, partners, and acquirers
industrialise innovation at speed
Examples are emerging in defense and AI — but Europe needs many more.
“These companies must become the next SAPs and ASMLs — and pull startups with them.”
The Four Corporate Failures Blocking Deep Tech
Martin outlines four systemic problems corporates must solve:
1. CEO Ownership
Startup collaboration cannot live in:
innovation labs
venture units
CTO side projects
If it doesn’t sit on the CEO agenda, it dies.
2. Trust Deficit
Corporates fear startups will:
disappear
fail to deliver
collapse mid-procurement
Founders fear:
endless pilots
slow decisions
zero P&L ownership
Trust must be rebuilt structurally — not rhetorically.
3. Capability Gaps
Most corporates lack:
fast POC budgets
empowered decision-makers
integration paths into core business
Innovation theatre no longer works.
4. P&L Clarity
Startups must articulate — clearly:
revenue uplift
cost reduction
competitive advantage
If it doesn’t hit the P&L within 9–12 months, it won’t scale.
Buyers First, Not Investors First
A core insight behind Deep Tech Momentum:
“Markets only work if buyers show up first.”
Instead of building conferences around:
startups → then VCs → then LPs
DTM flips it:
enterprise buyers first
founders follow
investors amplify
The goal isn’t inspiration — it’s contracts.
How Founders Actually Win Enterprise Customers
From Martin’s operator playbook:
Track input KPIs, not just revenue
proposals sent per week
outreach → meetings → pilots
Maintain 3–4x pipeline coverage
Design sales cycles around:
regulators
policymakers
primes & system integrators
In sectors like defense, founders must:
engage political stakeholders
influence capability definitions
sell years before procurement begins
This isn’t optional — it’s the job.
The State’s Real Role: Customer, Not Grant Giver
One of the sharpest critiques in the episode:
Europe doesn’t need more grants.
It needs state demand.
Historical reminder:
The US Department of Defense bought ~70% of early semiconductors
That procurement created entire industries
The lesson:
less regulation
fewer fragmented programs
more state purchasing power deployed deliberately
Final Thought: Europe Needs Courage
Martin closes with a challenge:
“Trust requires courage.
Courage to take risk.
Courage to buy early.
Courage to move fast.”
Europe doesn’t lack talent, capital, or ideas.
It lacks confidence and commercial bravery.
💡 One-Liner Takeaway
Europe doesn’t need more deep tech — it needs customers brave enough to buy it.
