Observed Signal · Jul 29, 2025 · Market Research / Report Release · Source: Tech.eu · Impact: 2/5 · Sentiment: Positive
First Momentum Ventures Publishes Deeptech Hardware Napkin Report
First Momentum Ventures released its second 'Deeptech Hardware Napkin' report, analyzing fundraising dynamics for European deep tech hardware startups at Pre-Seed to Series B stage based on over 100 anonymized survey responses from around 20 VC firms. Key findings reveal a growing investor appetite for early-stage tech risk, with 90% of Pre-Seed founders holding PhDs but fewer than 40% having relevant industry experience. Revenue is not a primary metric for early-stage investors; less than 40% of Series A companies and only 30% of Series B companies had revenue. The number of Pre-Seed companies with industrial pilots dropped from 40% to 20%, while 80% are in concept or lab demo stage. Investors prioritize technical traction over commercial traction. The report advises founders to plan fundraising independently of grants and involve customers early in development.
Provides data-driven insights into European deep tech hardware startup fundraising trends, relevant to VC investors in AdTech/MarTech infrastructure.
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Key Takeaways & Evidence Grounding
- First Momentum Ventures released its second 'Deeptech Hardware Napkin' report covering 2024-2025 data.
- 90% of Pre-Seed deep tech founders hold a PhD, up from 80% in 2022/23.
- Fewer than 40% of Pre-Seed founders have relevant industry experience.
- Only 30% of Series B deep tech hardware companies had revenue at time of funding.
- The number of Pre-Seed companies with industrial pilots dropped from 40% to 20% compared to 2022/23.
Connected Companies & Entities
1 Entity mapped“The report is inspired by Point Nine Capital's influential SaaS Funding Napkin....”
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Procuros Raises €20M for AI Supply Chain Connectivity
Hamburg-based Procuros, a supply chain connectivity platform, has raised €20 million in Series A funding. The round was led by XAnge, with participation from new investor W23 and existing backers Point Nine, Creandum, and b2venture, alongside angel investors. Founded in 2021 by Patrick Thelen and Benjamin Bradford, Procuros replaces fragmented B2B data exchange methods like EDI with a unified platform that validates and harmonizes data, enabling AI agents to automate supply chain transactions. The platform reduces manual processing by up to 95% with 99%+ data accuracy, serving over 300 customers in DACH and UK, including Breuninger and flaconi, and processing over €3 billion in annualized order volume. The funding will scale go-to-market activities, enhance AI-native infrastructure, and support international expansion into Europe and the US.
German AI Lab Grubel Raises €3 Million Pre-Seed Funding
Grubel, a Munich- and Tübingen-based AI research lab, has raised €3 million in pre-Seed funding to develop AI systems that adapt to individual legal cases. The round was led by Point Nine, with participation from notable angel investors including Jeff Dean, Chris Ré, Ion Stoica, and Harvey co-founders. Founded in 2026 by Moritz Hardt and Reinhard Heckel, Grubel aims to automate the AI specialization loop for complex legal work, comprising a data engine, test-time adaptation, and continual evaluation. The company plans to use the funds to support research, product development, and team expansion, targeting improvements in complex legal tasks while potentially handling routine tasks with smaller models.
Araceli Biosciences and Ginkgo Bioworks Enable High-Throughput Cell Imaging for Nebula
Araceli Biosciences and Ginkgo Bioworks announced the integration of Araceli's Endeavor high-content imaging system into Ginkgo's autonomous lab, Nebula, in Boston. The Endeavor, capable of scanning a 1536-well plate in under four minutes, adds real-time cellular imaging and analysis to Nebula's existing capabilities. This integration provides researchers with large, curated datasets essential for training and validating AI models for drug discovery. Nebula, built on Ginkgo's Reconfigurable Automation Carts (RACs), runs autonomous experiments 24/7, allowing scientists to submit protocols and receive data the next day. The Endeavor's ClaireRT software analyzes each well during acquisition, enabling real-time quality control and adaptive experiment continuation. This partnership aims to scale biological data generation, supporting the next generation of AI-driven drug discovery.
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