EUVC newsletter - 03.03.2025
Welcome to our community-sourced newsletter featuring the most important news from the European venture ecosystem and the latest submissions to the EUVC insights platform β the platform that collects & amplifies the best long-form pieces from the EUVC community.
Click here to submit your own articles, events or projects π₯
π¬ Survey | Who do you think are the best early-stage VCs in Europe?
There are more than 4,000 VCs in Europe ... but are they all equal?
We want to know which early-stage VCs are the cream of the crop and why.
Take our short, anonymous survey and make your voice heard!
Weβll reveal the most interesting findings in the coming weeks.
π Article | The pivotal role of fund accounting: risks, compliance, and strategic necessities
Why it matters: Fund accounting isn't just a back-office chore, itβs a make-or-break factor for VC firms. Institutional LPs are scrutinizing fund operations more than ever, and sloppy accounting can derail fundraising, trigger regulatory probes, and erode investor trust. With financial instruments like SAFEs and convertibles becoming the norm, funds need to master complex valuation and compliance across multiple accounting standards (US GAAP, IFRS, German HGB).
ACE Alternatives pushes for real-time accounting to avoid NAV miscalculations, legal pitfalls, and reputational damage. TL;DR: Get your numbers right, or risk losing LPs, facing fines, and tanking your fund before it even scales.
πPodcast | Target Global's Shmuel Chafets on reigniting Europe's creator mindset and investing in AI-Native innovations
Why it matters: In this episode of The European VC, Andreas talks with Shmuel Chafets, co-founder and Partner at Target Global, one of Europeβs leading venture firms with investments spanning software, fintech, mobility, logistics, healthcare, and consumer internet.
Shmuel shares his candid views on Europe's lagging position in AI, why Europe must shift from a risk-averse mindset to a creator-driven economy, and how AI is set to disrupt everything from public services to vertical SaaS.
π¬ Survey | Are you investing in European startups or scale-ups? Your voice matters!
Benoit Vandevivere from EU/acc is gathering investor insights on how to streamline corporate formalities (e.g., online filing, faster registrations, and optional notaries) and reduce bureaucracy across Europe. Your feedback will help shape policy discussions with the European Commission and institutions. Join the effort to modernize Europeβs business environment and improve its competitiveness!
Please take 2 minutes to complete the βAccelerating Europeβ survey.
π Article | P101 presents "State of Italian VC" a report on the evolution of Italian Venture Capital
Why it matters: Italyβs VC scene has grown 10x in a decade, with β¬8.6B invested in startups and a rise from 30 to 150 VC firms. But despite this progress, Italy ranks 24th in Europe for per capita investment (β¬114) and struggles with small fund sizes, weak late-stage funding, and a slow exit market (only 27 VC-backed exits in 2024, zero IPOs).
Deeptech, CleanTech, and Space Tech are booming, but Italy still lags behind Spain, France, and Germany in overall VC activity. Foreign investors are stepping in (45% in 2024 vs. 29% in 2020), but Italy risks staying a "VC underdog" in Europe without bigger funds and institutional LPs.
π Article | Solving the SME Talent Crisis: Lessons from Building LokLΓΆwen
Why it matters: In this interview, the SME Tech Leaders team talks to Artur Penkala, Co-Founder & Managing Director of LokLΓΆwen, to discuss how his company is tackling one of the biggest challenges facing SMEs today: the talent shortage. LokLΓΆwen is redefining workforce solutions for the railway industry, not just by staffing but by training, developing, and retaining skilled talent using a tech-enabled, people-first approach.
Artur shares insights on how LokLΓΆwen scales without external investors, the role of AI and hybrid training in workforce management, and the lessons he has learned building an SME from the ground up. With LokLΓΆwen being an LP at Δltitude, he also reflects on the broader trends shaping SME innovation and why backing early-stage SME tech startups is key to driving the next wave of transformation.
πPodcast | Oxxβs Ingrid Bonde Γ kerlind on leveraging the ICP bow tie framework to back high-growth European B2B SaaS
Why it matters: In this episode of the EUVC podcast, Andreas talks with Ingrid Bonde Γ kerlind, a seasoned investor at Oxx, a venture capital firm focusing on B2B SaaS companies that operate from London and Stockholm.
Ingrid shares practical insights on refining go-to-market strategies and leveraging data-driven customer segmentation to drive operational efficiency and venture-scale returns.
π Article | How AI is Transforming Energy & Climate Action?
Why it matters: AI is reshaping Europe's energy sector, turning a fragmented, volatile grid into an intelligent, efficient system. With 30,000+ wind turbines and 4.75M solar plants in Germany alone, managing decentralised renewables is beyond human capabilityβAI-driven energy forecasting, grid optimisation, and efficiency solutions are stepping in.
While the U.S. and China pour billions into AI, Europe has a shot at leadership by integrating AI into its climate goals. But hereβs the catch: over-regulation and budget constraints threaten progress, making private capital the real driver of AI-powered climate tech. TL;DR: AI isnβt just for ChatGPTβit's keeping the lights on.
π Article | The DEI Backlash in VC: Why I'm More Fired Up Than Ever
Why it matters: DEI is under attack, with big-name firms scrapping diversity efforts and critics claiming the job is "done." Reality check: only 16% of European GPs are women, managing just 9% of AUM, while all-women founding teams see a dismal 2% of VC funding. Meanwhile, data consistently shows diverse teams drive better returns.
The backlash is a huge missed opportunity for LPs and VCs who claim to seek differentiated networks and untapped talent. DEI isnβt charityβitβs smart investing. Want to outperform? Start by not excluding half the population.
π Article | Consumer AI Agents: Ready for take off?
Why it matters: AI Assistants (think ChatGPT) are booming, but AI Agentsβwhich actually take action on users' behalfβare still finding their footing. OpenAIβs Operator is pushing the boundaries, but adoption hinges on trust, complexity, and risk tolerance. Users might be fine with an AI reordering washing powder but booking their dream vacation? Not so much.
The equation is simple: AI wins when the hassle of DIY outweighs the risk of a bad outcome. While low-risk, transactional use cases will scale first, high-stakes decision-making remains a hard sell. VCs betting big on AI Agents should brace for a slow burn.
π Article | data-driven VC is over
Why it matters: AI-driven Deep Research (DR) has commoditized VC market research, leveling the playing field between solo GPs and mega-funds. With everyone analyzing the same data, at the same time, differentiation now comes down to contrarian intuition and industry relationshipsβnot just spreadsheets. The result? Fundraising memes spread faster, FOMO intensifies, and decision-making shifts from "rational" to "irrational" bets (think: Airbnb, Uber).
The edge in VC now lies in wisdomβpattern recognition, founder instincts, and knowing which opportunities matter before the herd catches on. TL;DR: The best investors will be those who know when to ignore the data.
π Article | Europeβs 25 most active angel investors
Why it matters: After a tough few years, Europeβs tech scene rebounded in 2024, and angel investors were busier than ever, backing 139 startups. Thibaud ElziΓ¨re led the pack with 17 deals, while Station Fβs Roxanne Varza was the only woman on the list.
Meanwhile, footballer Mario GΓΆtze kept scoringβthis time in VC, ranking 5th with eight investments. AI, spacetech, and automation dominated portfolios, with startups like Twin Labs, Skynopy, and Adaptive ML catching multiple top angels' attention. The takeaway? Angels are setting the trends, and VCs are following the money.
π Article | Listening to young Europeans and why their opinion matters about the old continent's future
Why it matters: With Europeβs population aging rapidly (median age now 44.7 years), the concerns of young Europeans (16-30) offer a preview of tomorrowβs political and economic landscape. The latest Eurobarometer Youth Survey highlights key trends: jobs and the economy (31%) and cost of living (40%) top their concerns, while security and defense remain low priorities (21%)βjust 14% in Greece.
Social media dominates news consumption (48% in Greece), shaping public opinion in new ways. As Europe faces a demographic crisis and economic uncertainty, understanding what drives its youth is crucialβbecause by 2050, theyβll be the ones running the show. Will the Old Continent be ready for its even older future?
π Article | Nature Tech in Europe: Why Investors Canβt Ignore This Emerging Sector?
Why it matters: Nature Techβusing AI, remote sensing, and biotech to scale nature-based solutions (NBS)βis Europeβs next climate tech frontier. Investments in the space hit $1.85B in 2023, growing 2.5x faster than broader climate tech. Yet, measuring impact and long return cycles still deter some investors.
EU policies like the Nature Restoration Law (β¬100B by 2030) and corporate demand for biodiversity tracking are pushing Nature Tech into the mainstream. With startups like Sylvera, Satelligence, and Pivotal leading, and VCs like Planet A Ventures and Pale Blue Dot backing the space, the sector is poised for breakout growth. Early investors stand to win big.
π Article | Lessons Building Africa's Most Valued Fintech Unicorn with βGBβ of Flutterwave
Why it matters: GB Agboola turned Flutterwave into a $3B fintech unicorn by solving Africaβs fragmented payments problemβbut success wasnβt just about tech. Trust, relentless regulatory navigation, and storytelling played key roles in scaling across 30+ markets.
His advice? Educate investors before pitching, prioritize profitability over unicorn-chasing, and shift from βship fastβ to βship responsiblyβ as you grow. With Africaβs tech boom accelerating, GBβs journey offers a masterclass in scaling fintech in emerging marketsβwhere trust is the ultimate currency.
π Newsletter | Reference Newsflash February 2025
Why it matters: The AI battleground is heating up: Agentic AI is here, biotech is being rewritten by AI-powered breakthroughs, and robotics is making a comeback with $675M+ mega-rounds. Infrastructure wars are raging, with Nvidia still leading but Amazon, AMD, and Intel fighting back. Meanwhile, the U.S.-China AI Cold War escalates, as DeepSeekβs efficiency-driven models challenge Nvidiaβs dominance, prompting potential bans across Italy, Australia, and South Korea.
For investors, AI funding hit $314B in 2024, but valuation bubbles loom, with OpenAI expecting $5B in losses despite a $157B valuation. The winners? AI startups scaling revenue 3x faster than SaaSβbut geopolitical tensions, military AI, and regulatory shifts (EU scaling back AI laws, Trump deregulating in the U.S.) could redraw the entire landscape.
π Article | The Deal Structure Conundrum
Why it matters: Founders love βoptimizedβ deal structuresβVC terms for PE deals, PE economics for VC raisesβbut most of these Frankenstein models waste time and alienate investors. VCs expect growth-focused equity, while PE wants majority control for cash-heavy dealsβmismatching structures leads to failed raises.
Control is another battleground: Serial founders scarred by bad investor experiences want zero oversightβbut smart investors demand transparency and protection (i.e., liquidation preferences, reporting rights). The reality? Market-standard structures work bestβfastest to fund, easiest to scale. The takeaway? Stop over-optimizing, take the money, and build.
π Article | Consumer Code: D2C, to SaaS, to AI
Why it matters: Consumer tech is back, but AI is rewriting the playbook. Historically, consumer startups (Amazon, Tesla, Airbnb) have dominated venture returns, yet investor appetite wanedβconsumer funding halved between 2019-2023.
Now, AI is creating a new wave of consumer winners by lowering barriers to entry, enabling new products (AI nutrition, emotional assistants), and blurring the line between SaaS & consumer tech. Meanwhile, health & sustainability are becoming dominant spending categories, with high-growth startups emerging in preventative healthcare and circular supply chains.
The UK leads in early adoption (digital banking, mobile commerce), and specialist consumer funds outperform generalists. The next billion-dollar brands wonβt look like the lastβexpect AI-powered, high-retention, and scalable models to dominate.
π Newsletter | Heartcore Insights Edition #121 - NVIDIA vs. Groq, Transatlantic Alliance in Danger, Orbex Series D round
Why it matters: The AI compute race is shiftingβNVIDIAβs dominance is under attack. Groqβs LPUs are disrupting inference, running at 5x lower cost and one-third the energy of GPUs. While GPUs still rule training, inference now consumes 10-20x more compute, making efficiency the new battleground. Meanwhile, data center power shortages could cap AIβs exponential growth within 3-4 years.
On the geopolitical front, the US-EU alliance is fraying. With the US negotiating Ukraineβs future without Europe and J.D. Vanceβs Munich speech sparking backlash, Europe faces a stark reality checkβstep up or lose relevance in the global order.
In VC land, Orbex secures Β£23M in its Series D to fuel European space ambitions, and AI-first startups dominate both early and late-stage rounds, with Harvey ($300M) and Together AI ($305M) leading the pack.
Up next in the EUVC community, weβve got exclusive AMAs, expert-led workshops, and insider discussions you wonβt want to miss. If you are not a member already, join now to connect and learn!
π¬ Community event | LP AMA with Ertan Can
ββJoin us for an exclusive AMA session with Ertan Can, Founder & Managing Partner at Multiple Capital.
βErtan Can is the Founder & Managing Partner of Multiple Capital, Europeβs first tech-focused fund of micro funds. With over 20 years of experience in asset management, VC, and fund of funds investing, he has backed 31+ early-stage VC funds and built a portfolio of 500+ companies. His mission is to democratize access to early-stage tech funds across Europe and the US.
ββThis AMA is part of our ongoing series of small-group sessions designed to foster deep, meaningful discussions within the VC community. Participation is free for members of our community, but spots are limited. Reserve your spot now to ensure you donβt miss this opportunity.
β° March 13 | π» Online | THIS EVENT IS FOR EUVC COMMUNITY MEMBERS ONLY.
βπ» EUVC Masterclass | Marketing Foundations for Fund Managers
βJoin us for an engaging workshop tailored for fund managers looking to institutionalise their marketing approach and craft a category-defining investment brand.
βThis masterclass is designed to go beyond traditional marketing advice on tactics to help you create lasting brand equity, ensuring your fund stands out in a competitive landscape.
βThis session will provide actionable insights into fund positioning, LP communications, and crafting compelling narratives - all while maximising time for Q&A to address your specific challenges.
β° March 13 | π» Online |
βπ» EUVC Masterclass | Setting up and Structuring a VC Fund
Emerging fund managers face countless challenges when setting up and structuring their first VC fund. The process is complex, daunting, and full of pitfalls, from navigating legal frameworks to engaging with the right service providers, the foundations you lay now will shape your growth trajectory.
Thatβs why weβre planning an exclusive 3-hour masterclass designed to equip emerging managers with the insights, strategies, and tools needed to tackle these challenges head-on.
β° Jun. 02 | π©πͺ Berlin | This masterclass is a side-event taking place during SuperVenture & SuperReturn.
Our 2025 is already packed with events and unique experiences, and we want you to join us. Here is whatβs coming next from EUVC! Exclusive retreats, adventure getaways, and deep-dive industry events designed to connect, challenge, and inspire.
How do you best engage with American LPs
Winning over American LPs isn't just about numbersβitβs about trust, positioning, and understanding what makes U.S. investors tick. This session brings together Matias Collan (ACE Alternatives), Felix von der Planitz (ACE Alternatives), and David Rose (US Expansion Partners) to break down LP expectations, fundraising strategies, and regulatory hurdles.
If you're a GP, investor relations pro, or just fundraising-curious, this is your chance to learn how to speak LP fluently and secure that sweet, sweet U.S. capital.
Roundtable on Choosing the Right Fund Admin
A solid fund admin partner isnβt just a back-office thing; itβs a compliance shield and time-saver if done right. This roundtable brings together Rebecca Roberts (7percent), Raoul Lehtonen (OpenOcean), Camille Hamon (Elaia), and Edwin Chan (Carta) to discuss key selection criteria, regulatory navigation, and tech innovations in fund admin.
Whether youβre launching Fund I or scaling Fund IV, outsourcing or keeping it in-house, this session will help you avoid admin nightmares and focus on investing. Donβt DIY your fund admin; learn from the pros.
Embark on a Journey of Deep Inner Work
Join us for a transformative experience of self-discovery and vulnerability, guided by Rupda and supported by a trusted group of peers. Through embodied practices and self-inquiry, we will build resilience, presence, and a supportive network of fellow investors and founders for meaningful growth. Letβs walk each other home.
Escape for an extended weekend of adventure
Join us for a partners retreat packed with awe-inspiring treks, thrilling canyoning and river rafting, and inspiring sessions balanced with moments of reflection and exceptional dining. Be inspired by world record-holding polar explorer Ben Saunders, challenged by our ex-commander, and discover how to deepen focus in an introductory deep work session with Fred Destin.
