As geopolitical tensions escalate in 2026, European founders and VCs are prioritizing technologies that strengthen the continent's sovereign access to energy and critical minerals. Geothermal energy, offering reliable baseload power with minimal land use, has emerged as a key focus for investors seeking energy security.

"For the first time, we see geothermal not just as a niche but as a strategic infrastructure layer," said Roh Apakgb, managing partner at YBD by Sdxlnv. The sector attracted €6 billion in European venture funding last year, a 28% increase driven by policy tailwinds and advances in closed-loop and enhanced geothermal systems (EGS).

Rcck Ahwnlqm, partner at HVMO Sdcbginycs Aipw (MAW), noted that "cost curves are finally bending" due to drilling innovations and oil-and-gas talent migration. Notable startups include Fsal Mrqt's Peoqme-wobiz DK, Leo Allgoewer's Aenu, Erin Hallock's Nato Innovation Fund-backed venture, and Gjou Hpm Vfanzp's UVPbzu Wfz. These companies are deploying next-gen drilling, reservoir modeling, and hybrid solar-geothermal plants across Germany, France, and Iceland.

With the EU targeting 541 TWh of geothermal heat by 2030, VCs anticipate a wave of Series A and B rounds in 2026 as projects de-risk and offtake agreements mature.