Can Europe strike back?
The AI Action Summit in Paris will try to answer this question for us.
Welcome to our newsletter's fifth edition. As this newsletter arrives in your inbox, the European VC community will be turning its attention to Paris, where the AI Action Summit has commenced. This summit aims to explore whether the EU can stay competitive in the global AI development race. This event comes on the heels of the recent "Stargate" announcement, a US initiative backed by leading tech figures and the government that plans to invest as much as $500 billion into AI infrastructure. Furthermore, the recent launch of DeepSeek’s R1 and V3 models has significantly impacted the tech sector, demonstrating that powerful AI models can be created at a much lower cost, thereby challenging established players like OpenAI and Google. Can Europe "retaliate"?
Europe will get an LLM (no, it's not Mistral ;)
Last week did not provide particularly strong answers to that question. On the home front, the EU-backed OpenEuroLLM initiative announced that it is developing an open-source language model designed for European languages and data privacy. Despite a €56 million investment, critics warn that it may struggle to keep up with the fast pace of global innovation and that its emphasis on compliance and diversity is misguided.
OpenAI opens an office in Munich
Meanwhile, in Germany, OpenAI announced the expansion of its international footprint with a new office in Munich, leveraging Germany’s rich technical expertise. Germany boasts the largest number of OpenAI users, paying subscribers, and developers in Europe, establishing it as a key market for expansion. The decision followed discussions with German officials since 2023 and received support from German Trade and Invest, a government agency that promotes international business.
France announces €109 billion in AI investments
Just before the AI Action Summit begins, a series of impressive announcements have emerged. Firstly, the UAE and France have joined efforts to create Europe’s largest AI data center and campus, with a planned capacity of 1 GW. This deal, valued between €30 and €50 billion, involves building state-of-the-art infrastructure, acquiring advanced chips, and establishing digital embassies. These initiatives aim to strengthen Europe’s AI capabilities and compete with both U.S. and Chinese developments. Additionally, the Canadian investment firm Brookfield has revealed plans to invest €20 billion) by 2030 in AI projects, particularly data centers, in France. Finally, President Macron announced an expected total investment of €109 billion, which encompasses the aforementioned projects along with further investments from companies such as Orange, Thales, Iliad, and others.
New Funds
🇩🇪 Cherry Ventures - $500M - Fund Close
Berlin-based Cherry Ventures has launched two new funds totaling $500M: an Early Stage fund and an Opportunity fund for Series B and beyond portfolio companies. Founded in 2012 by Filip Dames and Christian Meermann, the firm operates from Berlin, London, and Stockholm, typically investing between €2-7M in early-stage companies. The VC firm, whose investors are former operators from companies like Zalando, Spotify, and Uber, aims to support building Europe's first trillion-dollar company. Cherry Ventures has backed over 130 companies and maintains a focus on B2B software, fintech, industrials, healthtech, climate tech, and consumer.
🇫🇷 Emblem - $85M - Fund Close
Paris-based Emblem has raised $85 million for its inaugural VC fund. The fund targets 25-30 seed-stage startups across France and the Nordics, with investments ranging from €500k to €3M each. Over 200 limited partners support the fund, including founders from Unity, Pleo, Qonto, Spendesk, Voodoo, Ledger, and Zendesk, as well as institutional backers like EIFO and Bpifrance. The fund has already made 16 investments, including Pivot, The Mobile-First Company, and Volta.
🇩🇪 Hitachi Ventures - $400M - Fund Close
Hitachi Ventures, a Munich-based venture capital arm, has launched a $400 million fund to drive innovation in energy, AI, manufacturing, and other frontier technologies. The fund is led by Toshiaki Tokunaga and Stefan Gabriel, aiming to invest in early-stage startups across Europe. Backed solely by Hitachi Group, the fund builds on Hitachi Ventures' expanding portfolio, which includes companies like Akarion, Archetype AI, and Arsenal Bio. Hitachi’s scaling its corporate venture capital efforts from $150 million in 2019 to $1 billion over five years.
🇹🇷 Laton Ventures - $50M - Fund Close
Laton Ventures, a Turkey-based, gaming-focused VC fund, has closed its inaugural $50M fund. Founded by former Google gaming expert Görkem Türk, the fund targets pre-seed and seed-stage gaming and app startups globally. The firm has already made five investments and is backed by over 40 gaming and tech founders, along with strategic investors like Supercell and Tibas Ventures.
New Rounds
🇬🇧 Adia Thermal - £300K - Seed
London-based Adia Thermal has secured £300K in seed funding led by Blackfinch Ventures. The startup offers a patent-pending hardware and software solution that allows heat pumps to be retrofitted into homes without requiring extensive pipework or lengthy installation processes. This innovative technology enables installation by regular boiler engineers in as little as three days, even during boiler breakdowns. The funding will support the expansion of operations and further development of their retrofit solutions, aiming to make heat pump installations more efficient and accessible.
🇩🇪 Akribion Therapeutics - €8M - Seed
Akribion Therapeutics, a German biotech spinout focused on RNA-based therapeutics, has raised €8M in seed funding led by CARMA FUND and RV Invest, with investments from MP Beteiligungs GmbH, Hessen Kapital I, Bruker Invest, and High-Tech Gründerfonds (HTGF). The company is developing an RNA-guided, nuclease-based technology for programmable cell depletion, targeting diseases such as cancer, autoimmune conditions, fibrosis, and infectious diseases. Their approach allows for rapid adaptation by changing the guide RNA, making it potentially faster than traditional therapeutic development methods.
🇩🇪 Assemblean - €1.8M - Seed
Paderborn-based deeptech startup Assemblean has secured €1.8M in a seed funding round to revolutionize manufacturing automation. The company is developing a platform aimed at streamlining production processes and reducing operational costs in industrial settings. The round was led by b2venture, with participation from Archimedes New Ventures and Teuto Seed Club business angels.
🇬🇧 Astral Systems - £4.5M - Seed
Bristol-based deeptech firm Astral Systems has secured £4.5M in seed funding to scale its compact fusion reactor technology, which aims to produce an evergreen supply of medical isotopes for hospitals. The company’s innovative MSF (multi-state fusion) approach promises greater efficiency and lower cost than traditional reactors, addressing urgent healthcare needs. This financing will accelerate the development and commercialization of its breakthrough reactors, helping to transform nuclear applications in medicine.
🇩🇪 Avelios - €30M - Series B
Munich-based healthtech startup Avelios has secured €30M in Series B funding led by Sequoia to overhaul hospital data systems. The capital will drive the development of their robust platform designed to integrate, modernize, and streamline data management across hospital departments, enhancing operational efficiency and patient care.
🇬🇧 Blackdot Solutions - £4.5M - Seed
Cambridge-based Blackdot Solutions has secured £4.5 million in seed funding led by Maven Capital Partners, with participation from ScaleUp Group, Zero Carbon Capital, and Cycle Group. The company specializes in advanced intelligence and investigations software, providing its Videris platform to governments, law enforcement, and major corporations for risk management and compliance. This funding will enable Blackdot to scale its operations, enhance its AI and automation capabilities, and expand its global presence, supporting clients such as Dankse Bank, Certis Intelligence, and Berlin Risk.
🇩🇪 Coolnis - €300K - Seed
Coolnis, a German pet tech startup, has secured €300K in funding from business angels to advance its cooling mat designed to tackle heat sensitivity in dogs. The mat uses advanced microclimatisation technology to regulate pet body temperature actively.
🇧🇪 BiocSol - €4.4M - Seed
BiocSol, a Belgian startup specializing in sustainable crop protection solutions, has snapped €4.4M in seed funding led by Pymwymic and Win4company from the Walloon Region. The company develops innovative, next-generation microbial-based biopesticides with increased stability and effectiveness, providing farmers with eco-friendly alternatives to traditional crop protection methods.
🇩🇪 Comstruct - $13M - Seed
Comstruct, a German software platform aimed at digitizing the construction industry's procurement process, has raised $13M in a seed funding round led by Challengers VC and Fidelity, with participation from Infricore and GreenTech Fund. The platform streamlines ordering, digital delivery receipts, invoice reconciliation, and ESG reporting by integrating over 800 material suppliers using machine learning. Comstruct has already been adopted for major projects like the Gotthard Tunnel and is expanding into Germany, Austria, and other European markets.
🇫🇷 Crown - €2M - Seed
Crown, a procurement platform founded in Ukraine and based in Paris, has secured €2 million in seed funding to transform the negotiation process through electronic auctions. The platform simplifies procurement by allowing buyers and suppliers to finalize deals more efficiently than traditional methods that rely on general tools like Excel and Outlook. This funding round was led by Heartfelt, with participation from Kima Ventures, Backbone Ventures, Another.vc, Apok Invest, ZAS Ventures, Prequel VC, and Bpifrance.
🇸🇰 CulturePulse - €1.45M - Series A
CulturePulse, a US-Slovak startup, has raised €1.45M in Series A funding led by Rockaway Ventures from the Rockaway Capital group. Participating investors include Outlast Fund, Nebular, Fiedler Capital, and Change Ventures. The company specializes in AI-driven behavioral analysis and security risk prediction solutions, utilizing cognitive science and the ARES system to create digital twins for precise behavioral insights.
🇪🇪 DriveX - €1.2M - Seed
DriveX, an Estonian deeptech startup, has raised €1.2M in seed funding for its AI-driven windshield damage detection solution. The platform helps car owners capture optimal images for quick and accurate damage assessments, streamlining pre-insurance evaluations and cutting claim costs. The funding will enhance AI capabilities and expand market reach in automotive insurance. The round was led by Carglass Estonia, business angels from Lithuania and Slovenia, along with a development grant from the Estonian applied research program.
🇫🇷 Enduro Genetics - €12M - Seed
Enduro Genetics, a French biotech startup, has raised €12M in a seed funding round led by BioVentures Capital, with participation from GreenFuture Investors, HealthTech Partners, and Innovate BioFund. The company is pioneering advanced genetic engineering technologies to eliminate low-performing cells in biomanufacturing processes, enhancing efficiency and reducing costs in the pharmaceutical and biotech industries. Notable achievements include successful pilot projects with leading biopharma companies and the development of proprietary algorithms for cell performance analysis.
🇫🇷 EPYR - €3M - Pre-Seed
French climate tech startup EPYR has raised €3 million in pre-seed funding to advance its thermal energy storage solutions. The round was co-led by AENU and Daphni, with participation from OVNI Capital and WEPA Ventures, as well as contributions from several European business angels. EPYR’s technology converts surplus renewable electricity into heat, storing it in high-efficiency firebricks. Their AI-driven optimization software ensures efficient energy management, making their solution ideal for industrial heat demands, which account for 25% of global energy consumption.
🇬🇧 Fimple - $12M - Series A
London-based Fimple has secured $12M in Series A funding led by DN Capital and Smartfin, with participation from existing investors. The company provides cloud-native core banking software with flexible deployment options, rapid configurability, and a comprehensive banking and lending modules suite, including out-of-the-box support for Sharia-compliant finance. Its platform already serves clients across five countries, including trusted partnerships with leading financial institutions in Turkey, such as Aytemiz Investment Bank, Misyon Bank, Hedef Investment Bank, and Q Investment Bank.
🇸🇪 Froda - €150M - Lending Guarantee
Swedish fintech Froda has expanded its partnership with the European Investment Fund (EIF) to unlock a total of €150M in lending guarantees for SMEs. Building on an existing €50M guarantee, this additional €100M aims to improve access to financing for micro-enterprises—businesses with fewer than ten employees—across all 27 EU member states.
🇩🇰 GetWhy - $8.4M - Debt Financing
Copenhagen-based GetWhy, an agentic AI-powered consumer insights platform, has secured $8.4 million in debt financing led by CIBC Innovation Banking. The funding will support product development and market expansion. GetWhy utilizes its AI to provide real-time, actionable consumer insights, allowing brands to make quicker, data-driven decisions and gain a competitive advantage in the fast-paced consumer research landscape.
🇩🇪 hallo theo - €10M - Seed
hallo theo, a Berlin-based digital property management company, has raised €10M in seed funding led by Insight Partners. The company leverages technology and AI applications to enhance the property management service space, improving data quality, reaction times, and service offerings. The funding will be used to consolidate its market position in Germany, expand its national presence, and advance its proprietary technology development efforts.
🇨🇾 INXY Payments - $3M - Seed
Cyprus-based INXY Payments has raised $3 million in seed funding to bridge traditional finance with the crypto economy. The round was led by Flashpoint VC, with participation from angel investors. INXY Payments acts as a payment gateway that facilitates the integration of crypto payments into traditional business operations. Their platform offers features like multi-currency processing, automated payouts, and crypto-to-fiat conversion, ensuring robust regulatory compliance.
🇬🇧 Ionate - $17M - Series A
Ionate has secured $17M in Series A. This round was led by AlbionVC, with participation from In-Q-Tel (IQT), JGC MIRAI Innovation Fund, Santander InnoEnergy Climate Fund, IQ Capital, Zero Carbon Capital, Cycle Group to advance its smart electricity grid solutions. Their platform combines hardware, such as their Hybrid Intelligent Transformer (HIT), and software, like their Aurora platform, to enhance grid efficiency and enable real-time control. The company's technology is critical for modernizing energy infrastructure and supporting renewable energy integration. This funding underscores the growing importance of grid modernization in the energy sector.
🇪🇸 KOA Biotech - €2M - Seed
Barcelona-based aquaculture production startup KOA Biotech has raised €2M in seed funding to develop a biosensor system that detects waterborne infections early in fish farms. The technology combines biotechnological tools with proprietary algorithms to enable timely preventive measures, reducing mortality and antibiotic dependency. The round was led by Swanlaab Innvierte Agrifood-Tech, with participation from Fund-F and Faber, and will support further technological development and commercial rollout.
🇫🇷 Laclarée - €3.5M - Seed
Laclarée, a Villeurbanne-based startup developing adaptive eyeglasses for presbyopia correction, has raised €3.5M in a seed funding round led by Rimonci, with participation from UI-Investissement, High-Tech Gründerfonds (HTGF), and several business angels. The funds will support the development and commercialization of their innovative fluid-filled adaptive lenses, designed to offer presbyopic individuals clear vision at all distances without compromising aesthetics. This investment aligns with the growing demand for advanced vision solutions among the 25 million presbyopes across Europe, Japan, and North America.
🇫🇷 Le Fourgon - €8.2M - Series A Extension
Le Fourgon, a Marquette-lez-Lille-based startup, has raised €8.2 million in a Series A extension funding round to scale its reusable glass deposit solutions. With 65,000 customers now dividing their daily waste by three using containers that are washed and reused up to 40 times, Le Fourgon aims to significantly reduce plastic waste. This funding will support the expansion of their range of returnable products and the development of their B2B offerings.
🇨🇭 LogicStar - €2.9M - Pre-Seed
LogicStar, a Swiss deep tech startup spun off from Bulgarian INSAIT and ETH Zurich, has secured €2.9 million in a pre-seed funding round led by Northzone, with participation from founders from DeepMind, Fleet, Sequoia scouts, Snyk, and Spotify. The company develops AI agents that autonomously maintain software applications by identifying and fixing bugs, addressing inefficiencies in traditional AI and developer workflows. Founded in 2024, LogicStar leverages a model-agnostic platform using LLMs to enhance code fidelity and streamline maintenance processes for developers and software companies. This funding builds on the team’s previous success, including co-founder Boris Paskalev’s acquisition of DeepCode by Snyk in 2020.
🇫🇷 Mantle8 - €3.4M - Seed
French natural hydrogen exploration startup Mantle8 secured €3.4M in seed funding from Kiko Ventures. The company leverages geophysics, geochemistry, and seismic data to accurately detect and evaluate natural hydrogen deposits—an energy-efficient alternative to conventional hydrogen extraction.
🇬🇧 Model ML - $12M - Series A
UK-founded and New York-headquartered Model ML emerges from stealth with $12M in funding. Backed by Y Combinator and LocalGlobe—with additional angel investments from prominent banking and private equity figures—the company is revolutionizing how businesses gather and process data. Its AI-driven, voice-first interface automates the creation of spreadsheets, reports, and dashboards, eliminating the manual effort traditionally required for email, financial model, and presentation data consolidation.
🇩🇪 Modern Synthesis - $5.5M - Seed
Germany-based Modern Synthesis has secured $5.5M in seed funding led by Extantia Capital, with participation from Artesian and Collaborative Fund. The company uses advanced material science to transform nanocellulose—a natural byproduct of fermentation—into sustainable textiles that serve as eco-friendly alternatives to animal and plastic-based materials. The funds will support scaling production capacity and expanding its innovative portfolio in responsible, high-performance biomaterials.
🇫🇷 Neuralk-AI - $4M - Seed
French startup Neuralk-AI is developing a Tabular Foundation Model, an AI solution tailored for commerce. It processes structured data—like product catalogs and customer records—to create optimal numerical representations. This enables businesses to gain insights, enhance predictive analytics, and improve personalization. By addressing tabular data challenges that traditional models face, it uncovers patterns for better decision-making in retail and related sectors. Neuralk-AI secured $4M in funding led by Fly Ventures, with contributions from StemAI and various Business Angels.
🇩🇰 Pandektes - $2.9M - Seed
Danish legaltech startup Pandektes has raised $2.9 million in seed funding led by People Ventures, with participation from Interface Capital, and business angels. The company provides a database of court rulings and AI-powered tools to optimize legal workflows, assisting professionals in accessing and analyzing critical case law. Pandektes currently serves legal councils, public institutions, and large law firms in Germany and Denmark.
🇦🇹 Podero - €5.5M - Seed
Vienna-based Podero, a Y Combinator alum energy software startup, has raised €5.5M in seed funding to help utilities manage energy volatility and optimize distributed energy resources (DERs). The round was led by Planet A Ventures, with participation from Systemiq Capital, Pale Blue Dot, and Push Ventures. Podero’s AI-powered platform aggregates energy data from diverse smart devices, enabling utilities to adjust energy trading and balance grid loads dynamically, thereby enhancing overall grid efficiency.
🇦🇪 Qeen.ai - $10M - Seed
Dubai-based Qeen.ai, founded by former Google and DeepMind employees Morteza Ibrahimi, Ahmad Khwlieh, and Dina Alsamhan, has secured $10M in seed funding led by Prosus Ventures, with participation from Wamda Capital, 10x Founders, and Dara Holdings. The company offers autonomous AI agents designed to automate marketing and sales for e-commerce businesses, providing dynamic text personalization and real-time strategy optimization. Since its launch in 2024, Qeen.ai has served over 15 million users and increased sales by 30% for its clients. The funding will enable Qeen.ai to scale its platform and expand globally, targeting the rapidly growing MENA e-commerce market projected to reach $50 billion by 2025.
🇫🇷 Riot - $30M - Series B
French cybersecurity startup Riot has secured $30M in Series B funding to reinvent employee-focused cybersecurity using AI. The round was led by Left Lane Capital, with additional support from Base10, FundersClub, and Y Combinator. Riot’s platform integrates with an organization’s IT systems to assess employee cyber posture, identify vulnerabilities, and deliver real-time recommendations to mitigate social engineering and other cyber threats.
🇨🇭 SAEKI - $6.7M - Seed
Swiss startup SAEKI has raised $6.7M in seed funding led by Lightbird, with support from Founderful, 2100VC, Danobat, and several business angels. The company’s digital manufacturing platform integrates autonomous quoting, 3D printing, CNC machining, and automated inspection, making it easier and more cost-effective to produce large-format components.
🇬🇧 Salience Labs - $30M - Series A
Salience Labs, an Oxford-based company specializing in photonic solutions for AI datacenter connectivity, has raised $30M in Series A funding led by ICM HPQC Fund and Applied Ventures, LLC, with participation from Strategic Investment Fund, Braavos, Oxford Sciences Enterprises, Cambridge Innovation Capital, Silicon Catalyst, and Jalal Bagherli. Founded in 2021, the company collaborates with Nvidia to develop ultra-low-latency chip-to-chip links between quantum computers and GPUs. Their advanced photonic switching technology enables high-speed, reliable AI infrastructure, addressing critical connectivity challenges in large-scale AI deployments.
🇦🇹 Sequestra - €1.1M - Pre-Seed
Sequestra, a Vienna-based climate tech startup, has secured €1.1M in pre-seed funding led by Carbon Drawdown Initiative, with participation from VSE Beteiligungs-GmbH and Climate Founders. The company specializes in data-driven CO2 utilization processes for heavy industry, permanently sequestering CO2 within industrial byproducts like steel slag and demolition debris to create sustainable construction materials. Sequestra's innovative platform is projected to reduce global CO2 emissions by 4 to 8.5 billion tons annually.
🇩🇪 Solaris - €140M - Series G
Berlin-based Solaris has secured €140M in Series G funding led by SBI Group and Boerse Stuttgart Group. The embedded finance platform provides a proprietary modular B2B tech stack and scalable licensing system that enables partners, from large global non-financial corporations to fintechs, to deliver financial services. The funding follows their Series F round in March 2024, which raised €96M in equity and secured financial guarantees of up to €100M.
🇬🇧 Symphony Commerce - £2M - Seed
Symphony Commerce, a Stockport-based company specializing in digital commerce, has raised £2M in seed funding led by NPIF II – Mercia Equity Finance, with participation from Mercia’s EIS funds, Greater Manchester Combined Authority (GMCA), and private investors. The platform enables wholesalers, distributors, and manufacturers to create tailored e-commerce sites, customer portals, and product catalogues, managing complex B2B operations with integrations into ERP, finance, and marketing software. With over 2,000 customers, including Toshiba, Giacom, Daisy Telecom, and Tower Housewares, Symphony Commerce plans to use the funds to expand its operations and enhance development efforts.
🇦🇹 Synaps - €1.4M - Pre-Seed
Vienna-based proptech startup Synaps has emerged from stealth mode with €1.4 million in pre-launch funding for its "Figma for Architects" platform—an innovative, collaborative, browser-based architectural planning tool that enhances design by integrating real-time multiplayer editing and intuitive workflows. This funding round received support from angel investors, as well as Austria's Research Promotion Agency (FFG).
🇬🇧 Tana - $25M - Series A
Tana, a London-based online workspace platform with embedded AI analytics, has raised $25 million in Series A funding. This funding round was led by Tola Capital, with contributions from Lightspeed Venture Partners, Northzone, Alliance VC, and firstminute capital. Tana’s platform converts unstructured data into actionable insights—utilizing features like Supertags—to streamline workflows and enable smarter, faster decision-making among teams.
🇱🇻 Trace.Space - $4M - Seed
Trace.Space has secured $4 million in seed funding to enhance its AI-driven requirements management platform that assists businesses in designing and building complex software-enabled hardware products. The platform integrates straightforward group chat functionality with AI-enabled project management tools, facilitating real-time collaboration and automated workflows for industries such as robotics, semiconductors, and medical devices. The funding round was led by Cherry Ventures, with participation from Outlast Fund, Nebular, Fiedler Capital, and Change Ventures.
🇩🇪 Variolytics - Undisclosed - Growth Financing Round
Variolytics, a Stuttgart-based sensor technology company, has secured an undisclosed amount in a growth financing round led by Nordic Alpha Partners. This round also included participation from the European Innovation Council (EIC), High-Tech Gründerfonds (HTGF), and Fraunhofer Technology Transfer Fonds (FTTF). Variolytics develops advanced sensor technology to detect, analyze, and reduce greenhouse gas emissions in the wastewater sector.
🇬🇧 Warmly - $6M - Series A Extension
London-based Warmly has secured $6 million in a Series A extension round led by RTP Global, with participation from existing investors, including Felicis Ventures, NFX, and Redstone. The company's platform helps small and medium-sized B2B businesses optimize customer engagement by analyzing intent signals and enabling personalized outreach. This funding will support the doubling of their sales and marketing teams in Europe and globally.
🇵🇱 Wealthon - €115.5M - Funding Round
Polish fintech startup Wealthon has raised €115.5 million in funding from 3TS (equity funding) and Fortress Investment Group (debt facility) to address Europe's €400 billion SME funding gap. Their proprietary financial ecosystem features POSCASH (payment terminal-linked financing), WALLET (mobile financial management), LIMIT (instant credit), and POS System (integrated sales solution). The platform mainly supports businesses in the hospitality, retail, and catering sectors.
🇮🇪 ZeroRisk - $4M - Funding
Dublin-based ZeroRisk, an Irish risk and compliance platform founded in 2023, has raised $4M to expand its global presence, especially in the US, where it already serves several tier-one acquiring banks. The fresh capital will enable the creation of 40 new roles in data science, user experience, product, engineering, and sales and marketing. The round was led by Elkstone.