EUVC Newsletter - 25.08.2025
Exits, secondaries, and pension capital: Europe’s venture flywheel is starting to turn.
The echoes of May are still shaping Europe’s venture future.
The EUVC Summit wasn’t just an event—it was a catalyst for change. And as we roll out more conversations from that stage, what strikes us is how urgent those messages still feel. Joe Schorge’s orchard metaphor for secondaries, Kerry Baldwin’s trillion-pound pension challenge, and SV Health’s exit of the year weren’t one-off soundbites. They were signposts for where European venture goes next.
Europe isn’t short of founders, talent, or capital. What we’re short of is movement—circulation, exits, and the courage to scale our own models. The voices we’re publishing now, months later, still hit because they speak to that structural shift: from planting seeds to harvesting with discipline, from fragmented markets to continental strength.
The Summit may have wrapped in May, but its work is ongoing. And if anything, the urgency has only grown.
With 💖
David & Andreas
Table of Contents
🎧 Podcasts of The Week
EUVC Summit 2025: EUVC Summit 2025 | Winning in European Secondaries | Joe Schorge of Isomer Capital
EUVC Summit 2025: Exit of the Year: SV Health’s iBio Breakthrough
EUVC Summit 2025: EUVC Summit 2025 | The Path to Unlock European Pension Capital with Kerry Baldwin (IQ Capital) & Chris Elphick (BVCA)
EUVC Summit 2025: EUVC Summit 2025 | Europe is Not Monolithic | Mehmet Atici | Bek Ventures
EUVC Summit 2025: Christian Meermann, Cherry Ventures & Elsa Deseilligny, Cambridge Associates: The Next Generation of European VC Franchises
EUVC Summit 2025: Hampus Jakobsson, Pale Blue Dot & Romain Diaz, Satgana | ESG, CSR, DEI — Where Do the Acronyms Go?
VC: This Week in European Tech with Dan, Mads & Joe Knowles
✍️ Insights of the Week
Dual: Is Deep Tech Expertise the Key to European Sovereignty?
🎧 Podcasts of The Week
EUVC Summit 2025 | Joe Schorge of Isomer Capital: Winning in European Secondaries
At EUVC Summit 2025, Joe Schorge of Isomer Capital didn’t come with slides—he came with a metaphor. And it stuck.
He asked the room to imagine orchards of fruit. Not just apples or oranges, but a whole harvest cultivated over 12 to 14 years. Venture-backed companies. GPs. Fund positions. GP stakes. A record crop, grown with care across the UK and Europe.
“We’ve never had this much high-quality fruit in European venture. The question now is—how do we get it to market?”
Planting Was Easy. Harvesting Is Hard.
For years, Europe has been laser-focused on planting:
→ Backing great founders
→ Building great firms
→ Cultivating portfolios patiently
But as Joe reminded the audience:
“People expected the fruit to somehow sell itself. But we’ve learned: exits aren’t automatic. Distribution isn’t easy. And not everyone has the truck to move a watermelon.”
Secondaries aren’t just a workaround. They’re a solution. Partial or full sales, done right, serve founders, GPs, and LPs alike.
The European Secondary Market: Why Now?
The market is waking up:
There’s more to buy than ever before: mature companies, vintage funds, GP stakes
There’s more to sell than ever before: GPs needing liquidity, LPs rebalancing
There’s more need than ever before: LPs want DPI, not just IRR
“We’re all running 10-year funds. Buy-and-hold sounds noble, but LPs want cash back. And founders want momentum.”
Joe’s message to LPs?
→ Loosen your restrictions on secondary transactions
→ Back the capital that makes liquidity possible
→ Recognize that secondaries are a tool for progress, not shortcuts
Where to Begin?
Joe kept it simple:
Educate yourself – There’s a wealth of info online. Learn the mechanics and the nuance.
Look at your own portfolio – Where’s the fruit starting to ripen?
Talk to players in the space – From Isomer to a new wave of specialized secondary platforms, this market is growing fast.
A New Era of Venture Hygiene
“Let’s harvest, replant, and build the future together.”
Secondaries aren’t just about exits. They’re about creating circulation, maturity, and movement in a market that’s ready for it.
European venture has planted well. Now it’s time to harvest with discipline—and get ready to sow the next cycle with even more conviction.
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EUVC Summit 2025 | Exit of the Year: SV Health’s EyeBio Breakthrough
At this year’s EUVC Summit Awards, the “Exit of the Year” category drew intense debate—and for good reason.
Europe is finally entering its outcome era, and this year brought no shortage of competitive contenders.
But one exit stood out.
Winner: SV Health Investors, for the exit of EyeBio
Celebrating More Than Just Returns
As the host reminded us, this award isn’t just about a number on a term sheet:
“With exits, we’re celebrating outcomes. Outcomes that validate years of work, conviction, and follow-through.”
For SV Health, this exit marked a textbook example of deep science meets disciplined execution.
It wasn’t a flash-in-the-pan. It was a story of patient capital, strategic support, and a global-scale outcome born in Europe.
Why It Mattered
A breakthrough healthtech company delivering real-world impact
An outcome that unlocked returns and credibility
A case study in what’s possible when bio meets business in the right way
In a space where timelines are long and conviction is everything, SV Health and EyeBio proved what Europe is capable of when the pieces align.
The Bar Has Been Raised
“Hopefully, we’ll be seeing more and more exits like this in the years ahead.”
We agree. Because one great exit isn’t just a win for the team—it’s a signal to the ecosystem.
It tells LPs, policymakers, founders, and future fund managers: we can build here, and we can win here.
Congratulations to SV Health Investors and the entire EyeBio team.
Let’s keep building toward the next one.
EUVC Summit 2025 | Kerry Baldwin, IQ Capital & Chris Elphick, BVCA: The Path to Unlock European Pension Capital
At the EUVC Summit 2025, Kerry Baldwin (IQ Capital) and Chris Elick led one of the most urgent conversations of the year:
Can Europe mobilize its pension capital to fund innovation—or will it stay stuck on the sidelines?
With £1 trillion expected to be funneled into innovation, growth, and venture by 2030, the opportunity is massive. But unlocking it will take more than speeches and slogans. It will take structures, translation, and a whole lot of education.
The Landscape: Shifting Regulations, Real Potential
Chris opened by setting the context:
In July 2023, 10 of the UK’s largest pension funds agreed to invest 5% of assets into unlisted equities—representing £5 billion of fresh capital.
That capital is (unsurprisingly) biased toward private equity. But the real win?
Getting a meaningful slice of it into venture.
We now have the technical tools to do it:
The introduction of Long-Term Asset Funds (LTAFs)—with 27 launched to date—means the legal infrastructure is in place.
Regulatory shifts have opened the door. Now it’s time to walk through it.
“The pipes are built. Now we need to make the case.”
The Real Bottleneck? Language & Understanding
As Kerry pointed out, it’s not just about access—it’s about alignment.
“The pension world doesn’t speak venture. It speaks in valuations, risk ratings, board approvals, and actuarial models.”
To bridge the gap:
Ditch the pitch decks. Instead, build relationships.
Use case studies. Show, don’t just tell.
Speak their language. Get founders in the room. Educate through stories and real-world examples.
And yes, explain your fees—transparently.
→ “We charge fees because we hunt. We engage with professors. We run deep knowledge sessions. That’s where the value lives.”
A Word of Warning: Don’t Harm the Ecosystem
Kerry closed with a critical reminder from someone who’s seen the cycles before—2001, 2009, and now:
“Just play nicely.”
→ That means fair terms.
→ Respecting early-stage angels.
→ Not forcing founder-unfriendly clauses when capital is tight.
Venture doesn’t work when trust is broken at the seed layer.
A Trillion-Pound Opportunity—If We Get This Right
The prize is on the table. The pipes are laid. The policymakers are listening.
Now it’s up to us—as GPs, founders, LPs, and ecosystem builders—to:
Make venture legible
Build long-term trust
And design financial vehicles that serve founders, fuel returns, and unlock national innovation agendas
“Let’s stop waiting for the future to finance itself. Let’s build the financial architecture to fund it now.”
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EUVC Summit 2025 | Mehmet Atici, Bek Ventures: Europe is Not Monolithic
At the EUVC Summit 2025, Mehmet from Bek Ventures aimed a popular narrative—that Europe is underperforming as a tech region. Not because it’s untrue, but because it’s incomplete.
“Yes, there’s catching up to do. But you can’t argue there’s no dynamism in Europe—it’s just not evenly distributed.”
And once you look closer, the picture changes fast.
Not Just Paris, London, Berlin
Much of the “Europe must act” discourse comes from the continent’s largest economies—France, Germany, and the UK. But productivity data tells a different story:
Poland and Bulgaria are growing steadily.
Ecosystems in Tallinn, Lisbon, and Barcelona are booming—fueled in part by digital nomad visas.
Eastern European founders are making waves well beyond their borders—with names behind global giants like Databricks and Snowflake.
“Building a business isn’t a lifestyle choice for them. It’s a global ambition from day one.”
These founders bring international exposure, capital efficiency, and hunger—without the insular networks that often define more mature markets.
Europe’s Problem Isn’t Just Policy
Sure, improving regulation—around stock options, company formation, or funding incentives—helps. But as Mehmet put it:
“That’s medicine without a proper diagnosis.”
The bigger issue isn’t operational—it’s strategic positioning.
The U.S. remains the most attractive market: a single language, deeper capital markets, and cultural cohesion.
Europe’s software market is just 23% of global share, compared to 43% in North America.
So even if we fix the mechanics, the gravitational pull of the U.S. won’t go away. And in some cases, a European identity may actually slow access to that market—not speed it up.
From Fragmentation to Superpower
What if fragmentation wasn’t our weakness—but our untapped advantage?
“The most thriving tech ecosystems are the most politically cohesive—because they serve founders, not flags.”
Europe doesn’t need to copy the U.S. to succeed. It needs to recognize excellence wherever it emerges, connect the dots, and support founders wherever they’re starting from.
In Mehmet’s words:
“Our opportunity is to transcend borders—not erase them.”
The Original European Model Still Applies
“Let’s not forget: the original EU model was ‘United in Diversity.’”
It wasn’t a flaw. It was a feature.
Europe’s next wave of global founders may not come from the centers you expect—but they’re already building. Our job is to back them, bridge them, and help them win on a global stage.
Let’s get to it.
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EUVC Summit 2025 | Christian Meermann, Cherry Ventures & Elsa Deseilligny, Cambridge Associates: The Next Generation of European VC Franchises
At the EUVC Summit 2025, Cherry Ventures’ Christian and Elsa from Cambridge Associates offered a behind-the-scenes view of what it takes to stay true to your mission while building a firm that lasts. At the center of it all? The founder.
A Platform Built Around “Founders First”
For Cherry, “Founders First” isn’t just a slogan. It’s a system.
“Putting the founder at the center—doing everything to make them thrive—that’s the foundation of how we build.”
– Elsa
That principle doesn’t stop at deal selection or portfolio support. It shapes how Cherry builds its own team, firm, and platform. Every strategic decision—from hiring to productizing services—is filtered through one lens: Will this help our founders thrive?
And when it comes to fundraising?
“Your right to win with LPs ultimately ties back to that clarity of mission.”
Scaling with Intention (and Limits)
Christian addressed a tension many top-tier funds face: how big is too big?
He acknowledged the importance of honest, iterative conversations with LPs—but also highlighted a view shared by allocators like Cambridge Associates:
“There’s a sweet spot—where a strategy is still repeatable, but hasn’t lost its edge.”
In VC, scaling up can mean professionalization—but it can also lead to dilution of edge. The best funds find the institutional footing they need without drifting into sameness.
“You want to reach a size where you're clearly outperforming with discipline… but then stop there. That’s where true long-term relationships are built.”
The Emerging Manager Advantage
The insight many LPs quietly share?
They’re often betting on managers before they peak.
“Ideally, we find the manager early. We scale with them to that sweet spot—and then, no one else can get in.”
It’s not just about performance. It’s about conviction. The best LP–GP relationships are forged when the firm still feels like a startup—when the ambition is high, but the capacity is still intimate.
Cherry’s message was clear:
If you want to build a lasting firm, don’t chase scale for the sake of it. Build around your mission. Build with intentionality. And stay small enough to stay sharp.
The founders will notice. And so will the LPs.
Where operational expertise and innovation work for you.
EUVC Summit 2025 | Hampus Jakobsson (Pale Blue Dot) & Romain Diaz (Satgana): ESG, CSR, DEI — Where Do the Acronyms Go?
When Hampus Jakobsson and Romain Diaz took the stage at EUVC Summit 2025, the conversation wasn’t about convincing people that climate matters. That part’s done.
This was about the harder bit:
→ How do we fund the climate transition without compromising ambition?
→ How do we handle LPs who see impact as indulgence, or carbon reporting as box-ticking?
→ And how do we build conviction-led portfolios in a world that wants both velocity and virtue?
Climate Is Not a Virtue Signal—It’s a Sector
One of the most powerful reframes came from Hampus:
“Climate is like mobile or AI—it’s not a virtue, it’s a vertical. The difference is: in AI, we don’t know the problem. In climate, we do—we’re just figuring out the solutions.”
That means climate investing is not philanthropy. It’s not reputation management. It’s venture—with a horizon, a thesis, and real outcomes.
“If you're just looking to carbon offset with our fund, I’m fairly uncomfortable taking your money.”
The Tension: Impact vs Reporting vs Returns
As Romain and Hampus both pointed out, climate LPs today fall into three broad groups:
Impact-maximizers – want carbon reporting, ESG scoring, metrics.
Return-seekers – want DPI, not data tables.
Narrative-driven LPs – want the signal value of “being in climate.”
A good fund has to navigate all three—with alignment being more valuable than agreement.
“We had an LP walk away from Fund I because we wouldn’t do their carbon reporting. And we were okay with that.”
Instead, Pale Blue Dot found alignment with LPs like IIP, the pension fund for Denmark’s nurses:
“I sometimes ask myself—will this startup help deliver a pension to Danish nurses in 10 years? That’s the kind of alignment I want.”
On Methane, Neobanks & the Year 2050
From methane-reducing agtech to fintech disruptors, the pair underscored the importance of building for what the world will need—not just what it rewards today.
“We’re backing founders who are asking: will this still make sense in 2050?”
The subtext: stop treating the climate transition as a hypothetical. It’s already here. And it’s reshaping everything from agriculture to infrastructure to insurance.
“We don’t need everyone to believe. We just need to keep showing portfolio wins. The returns—and the reality—will take care of the rest.”
Climate Investing Is Growing Up
The closing message from Romain and Hampus was clear:
We don’t need more virtue. We need more velocity.
Velocity in:
Deploying capital
Backing bold founders
Scaling actual solutions
And reshaping LP mindsets—one fund, one return, one story at a time
The climate transition isn’t waiting. Neither should we.
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This Week in European Tech with Dan, Mads & Joe Knowles
Welcome back to another episode of Upside at the EUVC Podcast, where Dan Bowyer, Mads Jensen of SuperSeed, and this week’s special guest Joe Knowles from Smedvig Ventures unpack what’s happening in European venture capital.
This week: Are we doomed to lag the US in wealth creation or is Europe finally closing the gap? Why a record $100B of M&A matters for exits and recycling capital, and how founders should think about selling vs going for gold. Plus: Porsche & Deutsche Telekom anchoring a €500M defence fund as Germany drops its taboos, the scramble for cheap energy and battery breakthroughs, and what GPT-5, Perplexity, and Nvidia tariffs tell us about Europe’s place in the AI race.
Here’s what’s covered:
00:48 US vs Europe in Wealth Creation: Compounders, unicorns, and Europe’s capital efficiency.
09:07 Late-Stage Funding Gap: Why pensions and IPO markets hold Europe back.
17:36 M&A is Back: Google’s $32B Wiz deal, Windsurf drama, and Europe’s “second tier” opportunity.
25:52 Why Exits Matter: Recycling capital and the venture flywheel.
27:09 Defence Tech Goes Mainstream: Porsche, DT, EIF and Germany’s cultural shift.
36:18 The Ethics Question: Dual use, deterrence, and uncomfortable truths.
41:22 Energy Corner: Lithium recycling, sodium-ion batteries, and Europe’s 4x US energy costs.
46:44 AI Needs Power: Grid bottlenecks, red tape, and planning reform urgency.
51:10 GPT-5 Launch: Unified model, user backlash, and coding benchmarks.
54:37 Perplexity vs Chrome: PR stunt or regulatory opening?
58:32 Chip Wars: Nvidia tariffs, Huawei delays, and why Europe needs Chips Act 2.0.
1:05:59 Shoutout to Italy: Record €655M H1 startup funding.
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Insights of the week
Dual: Is Deep Tech Expertise the Key to European Sovereignty?
Building on our recent series of talks presented to European governments, Bullhound Capital has consolidated this research into a new report investigating how Europe’s deep tech capabilities can serve as a strategic pillar of resilience, a catalyst for innovation, and a long‑term economic engine in a time of geopolitical tension.
Key takeaways:
Europe’s R&D paradox – Despite world‑leading academic excellence, Europe continues to lag in productivity and R&D investment. R&D spillovers remain underutilised, and structural barriers block effective commercialisation.
Dual‑use tech as a sovereign lever – Technologies such as quantum navigation, AI inference, secure communications, and autonomous machines are essential to both economic and defence goals. Investing in them achieves two objectives with one budget line.
Europe must strengthen its growth‑stage funding – Deep tech startups often require significant capital at the pre‑revenue stage, and a strong technical understanding to evaluate investment opportunities based on the value of the technology rather than revenue milestones. This shift is leading to growth investors entering the investment lifecycle earlier, playing an increasingly vital role in advancing European deep tech.
Government as the first customer – Government contracts and grants play a crucial role in supporting early‑stage dual‑use companies, helping investors mitigate the risks associated with these technologies. Defence procurement should be streamlined to enable continued technological development, allowing defence ministries to actively shape the innovation landscape and align it with their strategic needs.
Fragmentation is holding Europe back – A lack of cohesion in procurement, differing national strategies, and overlapping bureaucracies reduce speed and efficiency. A coordinated approach, where states specialise in specific domains, could unlock scale and multi‑state collaboration.
Strategic VC can bridge the gap – Governments need the venture ecosystem’s agility, due diligence, and risk appetite to direct funding towards the most promising technologies. Meanwhile, VC funds must evolve their structures and governance to accommodate sovereign needs.
Authors: Ben Prade, Callum Stewart PhD, and Irina Chirca PhD
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