Virtual Pitching Workshop #December

European laboratories are embracing AI-powered microscopy at unprecedented rates, with productivity gains of up to 75% driving investment across the continent. This surge in digitalisation reflects broader trends in MedTech automation as regulatory frameworks like the EU’s Medical Device Regulation create demand for more precise, traceable diagnostic tools. Swedish biotech Cytely has secured €3 million in funding to accelerate its smart microscopy platform across European markets. The round was led by Ugly Duckling Ventures, positioning the Stockholm-based company to capitalise on growing demand for AI-enhanced laboratory equipment. Founded in 2021, Cytely has developed automated microscopy solutions that reduce analysis time whilst improving accuracy in cellular research. The company’s platform combines advanced imaging with machine learning algorithms to streamline workflows for pharmaceutical research and clinical diagnostics. Smart microscopy funding attracts Nordic investors Ugly Duckling Ventures, known for backing early-stage Nordic deeptech companies, led the investment round. The Stockholm-based VC has previously invested in companies like Kognic and Recorded Future, demonstrating their commitment to AI-powered solutions with global potential. “We’re seeing laboratories across Europe struggling with bottlenecks in microscopy analysis,” explains a spokesperson from Ugly Duckling Ventures. “Cytely’s approach of combining hardware optimisation with intelligent software creates compelling value for research institutions facing increasing workloads.” The funding positions Cytely within a growing ecosystem of Nordic companies applying AI to traditional industries. Sweden’s strong research infrastructure and talent pipeline in both life sciences and artificial intelligence create natural advantages for companies like Cytely competing in global markets. European investors are increasingly focused on companies that can demonstrate clear productivity improvements in regulated industries, particularly where AI adoption has lagged behind other sectors. European laboratories drive adoption of automated microscopy Cytely’s platform addresses specific challenges within European research environments, where varying regulatory requirements across member states create complexity for traditional microscopy workflows. The company’s automated approach helps standardise analysis protocols whilst maintaining compliance across different jurisdictions. “Traditional microscopy requires extensive manual intervention, creating variability in results,” notes Cytely’s leadership team. “Our platform ensures consistent, reproducible analysis whilst dramatically reducing time-to-insight for research teams.” The funding will support expansion across key European markets, including Germany’s pharmaceutical research sector and the UK’s biotech clusters. Cytely plans to establish partnerships with major research institutions whilst developing additional AI capabilities for specialised microscopy applications. Competition in the automated microscopy space includes established players like Leica Microsystems and emerging AI-first companies. However, Cytely’s focus on European regulatory requirements and local partnership strategies provides differentiation in fragmented markets. This investment reflects growing confidence in Nordic deeptech companies that combine hardware innovation with AI capabilities. As European laboratories face increasing pressure to improve efficiency whilst maintaining quality standards, solutions like Cytely’s platform become increasingly attractive for research institutions and commercial laboratories alike.

Industrial decarbonisation has become Europe’s most pressing challenge as manufacturers race to meet 2030 climate targets. While carbon capture technologies multiply across the continent, few address the fundamental efficiency problem at molecular level. Cambridge-based Immaterial is tackling this head-on with monolithic metal-organic framework (MOF) systems, successfully raising €15.4 million in Series A2 funding to scale their industrial decarbonisation technology across European markets. SLB leads €15.4 million investment in MOF innovation The funding round was led by SLB (formerly Schlumberger), the energy technology giant, marking a significant vote of confidence in Immaterial’s approach to industrial carbon capture. This investment represents SLB’s strategic push into sustainable technologies as European energy companies pivot towards net-zero commitments. The participation signals growing corporate venture interest in deep-tech solutions that can deliver immediate industrial applications rather than laboratory concepts. “Immaterial’s monolithic MOF technology represents a breakthrough in how we approach industrial carbon capture at scale,” noted an SLB representative. “Their ability to manufacture these systems with the precision and efficiency required for European industrial applications aligns perfectly with our portfolio strategy focused on commercially viable decarbonisation technologies.” The funding comes as European corporates increasingly seek proven carbon capture partners to meet stringent EU emissions regulations. SLB’s involvement brings not just capital but access to extensive industrial networks across European manufacturing hubs, particularly in Germany’s industrial heartland and the Netherlands’ chemical corridor. Monolithic MOF systems target European industrial markets Immaterial’s technology centres on monolithic metal-organic frameworks – crystalline structures that capture CO2 with unprecedented efficiency compared to traditional methods. Unlike powder-based MOF systems that suffer from handling and durability issues, Immaterial’s monolithic approach creates robust, scalable units suited for harsh industrial environments across European manufacturing facilities. The Cambridge startup’s timing proves astute as the EU’s Carbon Border Adjustment Mechanism pressures manufacturers to demonstrate real emissions reductions. Their systems integrate directly into existing industrial processes without requiring extensive retrofitting – a crucial advantage for European manufacturers operating on tight margins. “We’re not just developing another carbon capture technology,” explained Immaterial’s leadership team. “We’re creating manufacturing-ready systems that European industrial players can deploy immediately to meet compliance requirements whilst maintaining operational efficiency. The fragmented nature of European markets actually works in our favour – we can pilot with innovative manufacturers in the Netherlands or Denmark, then scale across similar facilities continent-wide.” The €15.4 million will accelerate manufacturing partnerships across key European industrial centres, with particular focus on chemical processing facilities in Germany and steel production sites in Sweden. Recent analysis of European industrial decarbonisation trends suggests companies investing now in proven carbon capture technologies will gain significant competitive advantages as regulatory pressure intensifies. This funding positions Immaterial alongside Climeworks and other European carbon capture leaders, though their industrial focus differentiates them in a market increasingly demanding immediate commercial applications over pilot programs. For European deep-tech investors, Immaterial represents the maturation of university research into industrially viable solutions – precisely what the continent needs to maintain manufacturing competitiveness whilst achieving climate goals.

Europe’s quantum computing landscape is experiencing unprecedented momentum, with venture capital increasingly flowing into hardware-focused startups tackling the sector’s most fundamental challenges. The latest beneficiary of this trend is QFX, a UK quantum startup that has secured €2.2 million in seed funding to accelerate development of its quantum hardware platform. This funding signals growing investor confidence in European quantum technologies, particularly those addressing the critical infrastructure layer that will underpin tomorrow’s quantum applications. Quantum hardware funding attracts strategic European investors The seed funding round reflects a calculated bet on quantum hardware infrastructure, led by investors who recognise the strategic importance of controlling the foundational technology stack. European venture capital has become increasingly sophisticated in evaluating quantum propositions, moving beyond the hype to focus on companies with clear technological differentiation and practical commercial pathways. The investment thesis centres on QFX’s approach to quantum hardware challenges that have historically limited the scalability and reliability of quantum systems. The funding comes at a pivotal moment for European quantum initiatives, with the EU’s Quantum Flagship programme having allocated over €1 billion to quantum research and development. This creates a supportive ecosystem where startups like QFX can leverage both private investment and public research infrastructure. The timing aligns with growing recognition that quantum advantage will first emerge in specific hardware configurations rather than general-purpose quantum computers. UK quantum startup tackles hardware scalability challenges QFX’s quantum hardware platform addresses fundamental scalability issues that have prevented quantum systems from achieving consistent commercial viability. The company’s technology focuses on improving qubit coherence and reducing error rates, two critical metrics that determine quantum system performance. This positions QFX within the growing ecosystem of European quantum hardware companies, including competitors like Oxford Ionics and Alpine Quantum Technologies, each pursuing distinct technological approaches. The €2.2 million will primarily fund hardware development and platform expansion, enabling QFX to accelerate its transition from research prototype to commercially viable quantum systems. This capital injection allows the company to scale its engineering team and enhance its manufacturing capabilities, critical steps for competing in the increasingly crowded quantum hardware market. The funding also supports QFX’s expansion into European markets, where quantum adoption is accelerating across industries from pharmaceuticals to financial services. This investment underscores Europe’s determination to maintain quantum sovereignty amid intensifying global competition. With the UK maintaining access to EU quantum research networks despite Brexit, QFX exemplifies how European quantum startups can leverage cross-border collaboration while building commercially focused technologies. The funding positions QFX to compete with well-funded American quantum hardware companies whilst building a distinctly European approach to quantum system architecture.