Deeptech
Q2 202406.06.2024

Industrial tech (Q2 2024)

Picture of Éanna Kelly

Éanna Kelly

at Sifted

AI systems are coming onto the factory floor to help with quality control, equipment maintenance, training and the automation of paperwork.

Germany’s Daedalus, founded by one of OpenAI’s first engineering hires, raised $21m in February to develop its vision for AI-controlled factories. Switzerland’s EthonAI raised a $16.5m Series A in May for software that predicts maintenance needs.

Big manufacturers are using so-called digital twin tech and AI to identify and correct shortcomings in operations early. Ai:omatic Solutions — based in Germany, as so many of these manufacturing startups are — raised €2m in January for a system that detects potential machine faults. Tomorrow Things, also German, raised €1.5m in March for a similar product.

Daedalus founder Jonas Schneider told Sifted in February that his technology will let workers communicate with its system via natural language. So you could prompt it with instructions like: “I need to make a hinge for this part that needs to be thin in these places.”

This sounds like potentially a big leap forward — and far away from the reality of most factories today. But imagine creating a painstakingly-complicated silicon wafer only to discover afterwards it’s not usable. In theory, the Daedalus approach could avoid costly defects like this: the company's pattern-matching tech could apply previous knowledge to configure machines for every new part.

20 startups to watch

  • Tacto logo

    Sifted score

    8.08
    -

    Tacto

    • Strong investor(s)
    • Hiring

    • Year founded

      2020

    • HQ

      Munich, Germany

    • Latest round

      Series A
      €50m / Dec 2023

    • Total funding

      €55.3m

    View company profile
  • Bren logo

    Sifted score

    7.3
    -

    Bren

    • Serial founder(s)

    • Year founded

      2018

    • HQ

      Nilüfer, Türkiye

    • Latest round

      Seed
      €10.9m / Oct 2022

    • Total funding

      €11.2m

    View company profile
  • Jimmy Energy logo

    Sifted score

    7.07
    -

    Jimmy Energy

    • Strong investor(s)

    • Year founded

      2020

    • HQ

      Paris, France

    • Latest round

      Grant
      €32m / Nov 2023

    • Total funding

      €49.2m

    View company profile
  • Ethon AI logo

    Sifted score

    6.98
    -

    Ethon AI

    • Strong investor(s)

    • Year founded

      2021

    • HQ

      Zurich, Switzerland

    • Latest round

      Seed
      €6.2m / Feb 2023

    • Total funding

      €7.2m

    View company profile
  • Outsight logo

    Sifted score

    6.61
    -

    Outsight

    LiDAR-based tracking and measurement solutions.

    • Strong investor(s)
    • Serial founder(s)
    • Hiring

    • Year founded

      2019

    • HQ

      Paris, France

    • Latest round

      Early VC
      €22m / Oct 2022

    • Total funding

      €42.6m

    View company profile

Related articles

Blossom Capital is dipping into defence. Here’s what the VC is looking for
Venture capitalInterview

July 31, 2026

Blossom Capital is dipping into defence. Here’s what the VC is looking for

Maxim Frenkel, partner at Blossom Capital
By Anne Sraders

Pro

What the CEO of Irish unicorn Tines learned from its AI overhaul
Startup lifeAnalysis

July 31, 2026

What the CEO of Irish unicorn Tines learned from its AI overhaul

What the CEO of Irish unicorn Tines learned from its AI overhaul
By Éanna Kelly

Pro

222 spinouts, €4.9bn raised: Europe’s top universities for spinout funding in H1 2026
Analysis

July 31, 2026

222 spinouts, €4.9bn raised: Europe’s top universities for spinout funding in H1 2026

By Oshin Narang and Ellie Apostolidi

Pro

The European startups racing to power the AI boom, mapped
EnergyMarket map

July 31, 2026

The European startups racing to power the AI boom, mapped

Telura site
By Jonathan Sinclair

Pro

EU opens applications for €10bn AI gigafactory scheme
Data centresNews

July 30, 2026

EU opens applications for €10bn AI gigafactory scheme

Companies and investors can now bid to build AI data centres backed by hundreds of millions of euros in public funding

By Martin Coulter
VCs are taking on operator roles. Why?
Venture capitalPodcast

July 30, 2026

VCs are taking on operator roles. Why?

A new trend seems to be gaining steam in Europe: VCs adding a CEO or operator title alongside their investor role

By Maya Dharampal-Hornby
Adyen is coming for agentic payments. Can startups keep up?
FintechInterview

July 30, 2026

Adyen is coming for agentic payments. Can startups keep up?

Carlo Bruno Adyen
By Damisola Sulaiman

Pro

AI startup Corgi to open 24/7 cafe in London
CommunitiesNews

July 30, 2026

AI startup Corgi to open 24/7 cafe in London

The new Shoreditch venue comes after a bumper first half of 2026 for London

By Maya Dharampal-Hornby
Why European VCs are quietly cheering the chip rout
AI chipsAnalysis

July 30, 2026

Why European VCs are quietly cheering the chip rout

Why European VCs are quietly cheering the chip rout
By Freya Pratty and Tom Nugent

Pro

Go big and go abroad: Europe’s startups are expanding internationally as early as seed
Sifted data

July 30, 2026

Go big and go abroad: Europe’s startups are expanding internationally as early as seed

An illustration of planes, traffic and people walking in front of an American flag.
By Federico Scolari

Pro

How to give your elevator pitch to a king
Startup lifeHow to

July 29, 2026

How to give your elevator pitch to a king

How to give your elevator pitch to a king
By Éanna Kelly
'I'd do things differently than Elon Musk': The free founder crash course teaching teenagers to break into tech
Startup lifeInterview

July 29, 2026

'I'd do things differently than Elon Musk': The free founder crash course teaching teenagers to break into tech

'I'd do things differently than Elon Musk': The free founder crash course teaching teenagers to break into tech
By Éanna Kelly
13 early-stage deeptech startups Tier 1 VCs backed in H1 2026
Venture capitalSifted data

July 29, 2026

13 early-stage deeptech startups Tier 1 VCs backed in H1 2026

By Oshin Narang

Pro

Pliant hits $100m ARR following US expansion
FintechExclusive

July 29, 2026

Pliant hits $100m ARR following US expansion

Unlike some fintech peers, Pliant cofounder Mathe Rau says company went stateside ‘at a good time’

By Damisola Sulaiman

Pro

One of Europe’s most active LPs is looking for VCs with ‘industrial know-how’
LPInterview

July 29, 2026

One of Europe’s most active LPs is looking for VCs with ‘industrial know-how’

Michael Dimelow of Molten Ventures
By Anne Sraders

Pro

AI rollup startup Dwelly raises $170m backed by EQT and General Catalyst
Artificial intelligenceNews

July 28, 2026

AI rollup startup Dwelly raises $170m backed by EQT and General Catalyst

By Martin Coulter
Visionaries cuts investment team to two lead partners for next fund
Venture capitalNews

July 28, 2026

Visionaries cuts investment team to two lead partners for next fund

By Anne Sraders and Maya Dharampal-Hornby
How an office makeover can boost productivity: ‘Your physical space conveys credibility’
Startup lifeSponsored by

July 28, 2026

How an office makeover can boost productivity: ‘Your physical space conveys credibility’

How an office makeover can boost productivity: ‘Your physical space conveys credibility’
Sponsored by London Business School
Exclusive: ETH Zurich spinout ZuriQ raises $25.5m seed
QuantumExclusive

July 28, 2026

Exclusive: ETH Zurich spinout ZuriQ raises $25.5m seed

The Swiss startup says it has developed a new architecture for quantum chips that will enable rapid scaling

By Daphné Leprince-Ringuet

Pro

Every European unicorn exit of 2026 so far
Venture capitalAnalysis

July 28, 2026

Every European unicorn exit of 2026 so far

Every European unicorn exit of 2026 so far
By Ruggero Di Spigna and Federico Scolari

Pro

9fin completes first employee share sale after $170m raise
FintechExclusive

July 28, 2026

9fin completes first employee share sale after $170m raise

Secondary share sales increasingly popular among European fintechs

By Damisola Sulaiman

Pro

ETN steps up bid to become Europe’s TBPN with $1.6m raise: ‘We’re taking this incredibly seriously’
MediaInterview

July 27, 2026

ETN steps up bid to become Europe’s TBPN with $1.6m raise: ‘We’re taking this incredibly seriously’

ETN cofounders Luke Knight and Ronan Chambers
By Martin Coulter
Bessemer, Atomico in talks to lead The Exploration Company funding at $2bn valuation
SpacetechExclusive

July 27, 2026

Bessemer, Atomico in talks to lead The Exploration Company funding at $2bn valuation

By Anne Sraders

Pro

UK pension providers in talks for £1bn Scale-Up Fund
Venture capitalNews

July 27, 2026

UK pension providers in talks for £1bn Scale-Up Fund

Talks come weeks after France sought to block British participation in EU’s own scheme

By Martin Coulter