Welcome to a new episode of the EUVC podcast, where our good friends Dan Bowyer and Mads Jensen from SuperSeed, discuss with Lomax Ward, General Partner at Outsized Ventures, to cover recent news and movements in the European tech landscape 💬
Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.
🏔️ EUVC Getaway on June 5 - 8, 2025
✍️ Show Notes
How Health Startups are Transforming Care
The healthcare industry is on the brink of a transformation, and startups may have more opportunities than ever.
Dan and Lomax dive into the potential of new health tech innovations, particularly preventative health scanning, which has already seen major developments with startups like Neko Health, founded by Daniel Ek. Will these advancements lead to a renaissance for health tech startups and even a shift towards preventative care within large systems like the NHS?
Nico Health and Preventative Care: Dan shares his experience with Neko Health, a startup offering comprehensive health scans. With only two locations in London and Stockholm, the service is gaining traction, suggesting a demand for advanced preventative care that could shape the future of healthcare.
Health Tech Investment Growth: The UK health tech sector has historically attracted significant investment, positioning it as one of the leading markets globally. With startups like Nico Health showing promise, is the industry about to see a resurgence?
Challenges and Opportunities: Lomax discusses the challenges in getting large health systems to adopt preventative health technologies, citing the need for more data to justify government funding. The debate highlights a critical opportunity for startups to innovate in ways that can appeal to both private consumers and healthcare systems alike.
ChatGPT Turns Two: The Competitive AI Landscape Heats Up
Dan and Lomax discuss how OpenAI stole a march on Google, which then stumbled due to internal challenges like excessive working from home and "woke confusion" about its core mission. Now, newer players like Anthropic and x.ai are diving into the race full force, fueling an industry-wide rivalry that is exciting to watch.
OpenAI in the Lead: Despite the growing competition, OpenAI remains the dominant force in the industry, with revenue five times that of its closest competitor, Anthropic. The market continues to bet on OpenAI as the clear frontrunner in this rapidly evolving landscape.
Rise of Competitors: Anthropic and x.ai have entered the arena, going "whole hog" to compete. This surge in competition is seen as a healthy driver for the industry, pushing advancements and keeping the landscape dynamic.
Expanding Applications: Beyond just competition, more applications are being built on top of these AI platforms. With advancements in reasoning capabilities and broader implementation, the impact on enterprise solutions is set to grow massively in the coming years.
The race between AI players is far from over, and as new capabilities emerge, the entire industry is set for transformative changes. Long may the competition continue, driving innovation and progress.
Northvolt's Struggles: Lessons in Execution and the State of European Startups
Northvolt, once a promising European battery startup, is now facing significant challenges.
Dan and Lomax discuss the massive execution issues that led to the company losing key contracts, including a $2 billion deal with BMW. In the world of startups, success requires being great at either technical execution or customer relationship management—preferably both. Northvolt, unfortunately, appears to have fallen short in both areas.
Execution Challenges: Northvolt's inability to deliver on time led to major setbacks, including losing the $2 billion BMW contract. This is a striking example of how execution issues can critically undermine even the most well-funded startups.
A Lesson in Priorities: Successful startups excel in tech execution, customer relationship management, or ideally both. Northvolt's struggles indicate weaknesses in both aspects, serving as a cautionary example for founders on the importance of managing these areas effectively.
European Risk Capital: Lomax raises the question of whether Northvolt's situation is indicative of a broader problem with European risk capital. Are European investors facing unique challenges in supporting high-risk, high-reward ventures effectively?
Northvolt's story is a stark reminder that no matter how much capital is available, flawless execution and strong customer relationships are crucial for success—especially in industries with tight timelines and high expectations.
Recursion and ExScientia: The Fall of a Once-Promising Tech Bio Venture
Dan and Lomax discuss how the company, once valued at $3 to $4 billion, saw its worth diminish to just $625 million, despite having $350 million in cash on the balance sheet. Founder Andrew Hopkins was sacked over inappropriate relationships with staff, and the chairman faced criticism for mishandling the situation. With both the founder and CEO leaving, the company found itself rudderless, needing to find a new direction.
A "Whimper" of an Exit: What started as a promising venture for ExScientia has culminated in a disappointing end, with a final valuation far below its peak. The challenges of leadership transitions and controversy have made it a challenging journey for the company.
Leadership Crisis: The removal of Founder Andrew Hopkins, coupled with the mishandling of his departure by the chairman, left the company leaderless and in need of stability. This loss of direction showcases the critical role strong leadership plays, especially in highly technical industries like tech bio.
Disappointing Conclusion for a Tech Bio Star: ExScientia was once one of Europe’s more successful players in tech bio, but its fate serves as a reminder of the fragility of startups. Even with significant achievements and funding, poor management decisions can derail a company’s potential.
The story of Recursion and ExScientia serves as a cautionary tale for the importance of leadership stability and effective crisis management, especially in high-growth sectors.
Cradle's Monster Series B: Generative AI Revolutionizes Protein Engineering
Dan and Lomax discuss how Cradle, which only raised its Seed round in 2022, has now amassed over $100 million in funding in just two years. This rapid success highlights the growing interest and investment in generative AI technologies within the biotech space.
Generative AI Meets Biotech: Cradle is using generative AI to revolutionize protein engineering, which has drawn significant attention from investors. This innovative approach is seen as a major breakthrough in how biotech problems are solved, leading to significant funding rounds.
Monster Series B: Raising over $100 million in such a short time is a remarkable achievement for a company that was in its Seed stage just two years ago. This level of investment signifies strong belief in Cradle's potential to make a substantial impact on the biotech industry.
A Promising Future: With fresh funding and growing momentum, Cradle is well-positioned to continue pushing the boundaries of protein engineering, paving the way for future advancements in the biotech sector.
Cradle's journey from a seed-stage startup to raising a "monster" Series B round is a testament to the power of generative AI and its transformative potential within biotech.
Psychedelics Back in Business? The Changing Landscape of Medical Applications
After a major setback in August with the failed flagship trial of Lykos, the psychedelics industry might be poised for a comeback. Dan and Lomax explore whether the tides are turning for psychedelics and what this means for the market, especially for key players like Atai and Compass Pathways.
Setback and Revival: The failed trial of Lykos in August marked a significant setback for the psychedelics sector, but Lomax discusses recent changes that could indicate a brighter future ahead. Psychedelics, long controversial, might see renewed interest and momentum in the coming months.
The Power of Labels: The conversation touches on the irony of how labels influence perceptions. Substances like codeine and diamorphine (medicinal heroin) are used by healthcare providers despite their controversial origins, drawing a parallel to psychedelics and their potential medical applications.
Key Players to Watch: Atai and Compass Pathways, two major publicly listed companies in the psychedelics space, may be well-positioned to benefit from a potential revival. With ongoing research and development, these companies could play a pivotal role in bringing psychedelics back to mainstream medicine.
The psychedelic industry is at a crossroads, with setbacks behind it and potential new opportunities on the horizon. If perceptions shift and research succeeds, the space could be set for significant advancements in medical treatment.
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