Building a deep tech startup is not easy.
Long development cycles, complex technologies and significant upfront costs mean that many founders spend years turning research into something ready for the market. And while Europe has no shortage of talent or innovative ideas, getting from prototype to commercialisation remains one of the biggest challenges for startups.
The problem is not a lack of ambition. It is access to the right support at the right moment.
That is why programmes such as Women TechEU matter. Designed to support women-led deep tech startups, Women TechEU combines equity-free funding with mentoring, coaching and business development support. Since its launch, the programme has received 3,792 applications, selected 160 startups, and distributed €12 million to innovative companies across Europe.
But beyond the funding itself, the programme has generated something equally valuable: insight.
The recently published Women TechEU Policy Paper #4, co-authored by Miguel García, Virginia Gómez (Sploro) & Angele Giuliano (AcrossLimits), and designed by Elizabeth Camilleri, offers one of the clearest operational views yet of how cascade funding performs in practice. More importantly, it explores what Europe can learn from that experience as discussions around FP10 begin to take shape.
Here are some of the findings that caught our attention.
One statistic stands out immediately. Out of 3,792 applications submitted to Women TechEU, only 160 startups could be selected — a success rate of just 4.2%.
While this highlights the competitiveness of the programme, it also reveals something bigger: the demand for accessible, non-dilutive funding is significantly higher than the opportunities currently available. Across Europe, founders are actively looking for funding that allows them to validate technologies, develop prototypes and reach important milestones without giving away equity at a very early stage.
The challenge is not finding startups with potential. The challenge is ensuring that more of them can access the support they need to grow.
One of the most interesting findings from the paper is not only how many startups received funding, but when they received it.
More than 80% of surveyed beneficiaries were operating between TRL 4 and 7 — the stage where technologies move from validation and testing towards demonstration and commercial deployment. For many founders, this is also where fundraising becomes most difficult. The technology is no longer just research, but it is not yet a fully proven commercial product. Investors want more validation. Customers want more evidence. The startup needs resources to generate both.
"Cascade funding grants are the bridge that joins both sides of the story — the research world and the market. Small tickets, short projects, easy applications, milestone-based, non-dilutive — they are the initial push a company needs before going into Series A and beyond."
That is exactly where cascade funding can have the greatest impact: helping startups reach the milestones that make future investment possible.
When discussing public funding, the conversation often focuses on how much money is distributed. The Women TechEU experience suggests we should be paying closer attention to what happens afterwards.
According to the paper, beneficiaries achieved a follow-on investment leverage ratio of approximately 6:1. In simple terms, every euro invested through the programme helped unlock six additional euros in subsequent funding.
For startups, this matters enormously. A grant can support product development, testing or market validation — but the real objective is creating the conditions for future growth.
The results suggest that well-designed cascade funding is not simply distributing money. It is helping startups become more investable, more resilient and better positioned for long-term growth.
The paper is optimistic, but it is also realistic. After managing 36 open calls across 10 European programmes, evaluating more than 6,000 applications and allocating over €25 million in funding, the authors have seen the same challenges appear repeatedly.
Visibility remains fragmented — many startups never discover relevant opportunities simply because open calls are not published in a centralised, consistent way. Application processes vary significantly between programmes, and administrative requirements are often duplicated, creating unnecessary friction for both founders and fund managers. For many deep tech companies, the current €60,000 funding ceiling does not reflect the realities of prototyping, certification and validation costs either — it is a cap that made sense for broad distribution but does not always fit the needs of capital-intensive innovation.
None of these issues undermine the value of cascade funding. But they do highlight real opportunities to make the system more effective for everyone involved.
One of the strongest aspects of the paper is that it does not stop at identifying problems — it proposes practical solutions.
The recommendations range from improving the visibility of open calls and simplifying validation processes to creating dedicated FSTP instruments within FP10 and introducing larger funding categories for startups with greater capital requirements. Concretely, the paper puts forward seven changes:
"The FP10 transition is a once-in-a-decade opportunity to get this right."
These are not radical changes. They are operational improvements based on years of experience working directly with founders, evaluators and innovation ecosystems across Europe.
The conversation around Europe’s next Framework Programme is already underway. As policymakers discuss budgets, priorities and instruments, the experience of Women TechEU offers a useful reminder: supporting innovation is not only about funding research. It is about helping promising technologies reach the market.
The evidence from nearly 4,000 applications suggests that cascade funding is already playing an important role in that journey. Now the challenge is making it work for even more startups.
