Deep tech is now the heartbeat of Europe’s tech investment landscape. By 2023, it accounted for 44% of all tech investments across the continent — up from 26% in 2019. This leap has propelled deep tech ahead of sectors like fintech and SaaS, signaling a shift toward more complex, science-driven innovation.
Despite the rising venture capital (VC) interest, deep tech startups still face significant hurdles. On average, they need 35% more time and 48% more capital to reach $5 million in revenue compared to traditional startups. This means they require investors with deep technical expertise and a long-term vision.
That’s where Lunar Ventures Fund II comes in. The Berlin-based VC firm is doubling down on its technical-first, conviction-driven investment strategy by launching a second fund focused exclusively on pre-seed deep tech startups. This move builds on its track record of backing future-defining technologies like large language models (LLMs), homomorphic encryption, and decentralized science — long before they hit mainstream awareness.
Technical Expertise Meets Early Conviction
Founded by Dr. Elad Verbin, Mick Halsband, and Luis Shemtov, Lunar Ventures was designed from the ground up to serve technical founders. The firm has grown to a team of 11 professionals, including PhDs in physics and computer science, ex-CTOs, and experienced operators. Their mission: support deep tech entrepreneurs from day zero — before traction, buzz, or consensus.
Lunar’s first fund, launched in 2021, more than doubled its original €20 million target, closing at €40 million. It backed 25 companies, six of which — including Deepset, Zama, and Molecule — attracted follow-on funding from elite U.S. firms such as Founders Fund, Spark Capital, and Google Ventures.
Now, Lunar Ventures Fund II aims to push even further. With support from institutional giants like Isomer Capital, Lingotto (Exor), Grinnell College Endowment, and Intesa San Paolo Endowment, the fund plans to invest €750K to €1M in 25 to 30 startups. Around 20% of the capital is earmarked for U.S.-based companies outside Silicon Valley, targeting underserved regions.
Already, Fund II has made promising bets. It led pre-seed rounds in:
- Bruin (Berlin): A platform that merges data quality, observability, governance, and transformation.
- Lodestar Space (London): A space robotics startup creating autonomous systems to defend critical infrastructure, backed by the UK and EU space agencies.
Lunar’s portfolio also includes startups tackling AI drug discovery, regulatory-compliant agentic AI, and scalable data infrastructure. So far, Fund II has notched two up-rounds — a positive early signal for investors.
Europe’s Deep Tech Future: Fund II’s Strategic Vision
Lunar Ventures Fund II is focusing on three transformative sectors beyond current AI trends:
- High-value data at scale – Enabling rare, high-quality data collection and processing.
- Computational biology tools – Accelerating breakthroughs at the intersection of biology and computation.
- Resilient infrastructure for intelligent systems – Building tech that enables reliable AI performance in unpredictable real-world environments.
This vision aligns with broader European ambitions. The European Innovation Council (EIC) is boosting its deep tech commitment with €1.4 billion in funding for 2025 — up from €1.2 billion in 2024. Since 2021, the EIC Fund has helped create over 150 “centaurs” (valued at €100M+) and eight unicorns. Together, deep tech hubs like London, Paris, Munich, and Stockholm have attracted more than $30 billion since 2018.
Still, there’s a pressing need for local, science-savvy capital at the earliest stages. Nearly half of Europe’s late-stage deep tech funding now comes from non-European investors. Lunar Ventures bridges that gap with its pre-seed focus and in-house technical firepower.
As co-founder Mick Halsband puts it, “We designed Lunar to be the first partner to technical builders — not just with capital, but with conviction and deep understanding.” In a field where trends take time to develop, that early belief can make all the difference.
