Another packed newsletter for you. Let’s get into it.
🎧 Podcast with Prosus Ventures' Sandeep Bakshi on the evolution of the European marketplace landscape
📝 gener8tor Luxembourg Accelerator Unveils 2024 cohort at Luxembourg Venture Days
We’ve got some standout submissions on the community insights platform to share, plus upcoming workshops in the EUVC community you won’t want to miss.
For those of you interested in late-stage high profile deals, we have gotten access to xAI, Anthropic and Anduril that are all closing over the next few weeks. Reach out to andreas to hear more.
To get featured, go here.
Prosus Ventures' Sandeep Bakshi on the evolution of the European marketplace landscape
In this episode of the EUVC podcast, Andreas talks with Sandeep Bakshi, Head of European Investments at Prosus Ventures.
Andreas and Sandeep discuss the evolving dynamics of early-stage investing across Europe and beyond, sharing insights into how Prosus Ventures identifies opportunities in a global landscape. Sandeep offers his perspective on navigating the European VC scene, reflecting on the unique challenges and opportunities facing founders today. The conversation also covers the role of strategic capital in scaling startups, with a focus on the sectors and trends shaping the next decade.
At Prosus Ventures, Sandeep oversees a diverse portfolio targeting early-stage companies around the world. With notable investments such as Delivery Hero, iFood, OLX, Bilt Rewards, Corti, Superside, Avant Arte, and Oxford Ionics, Prosus Ventures continues to drive innovation by backing transformative startups across various sectors and geographies.
Watch it here or add it to your episodes on Apple or Spotify 🎧 chapters for easy navigation available on the Spotify/Apple episode.
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✍️ Show notes
The evolution of the marketplace landscape & what role AI started to play in this?
Over the past decade, digital marketplaces have evolved from simplistic online shopping platforms to highly sophisticated ecosystems. Initially, their success was driven by scale and convenience, but the shift towards AI integration has redefined user experiences and operational efficiencies.
Operational efficiencies: AI allows marketplaces to automate processes like customer service, fraud detection, and content moderation. Generative AI helps streamline listing creation by auto-generating product descriptions and handling inquiries, reducing costs while improving accuracy. Example with iFood who has embedded AI throughout its operations the last few years:
We’re seeing this with several of our food delivery investments. For iFood for example: For customers, AI provides personalized food recommendations and enhances customer support through chatbots, improving overall user experience. For drivers, AI optimizes delivery routes and schedules, allowing drivers to navigate efficiently and respond dynamically to demand.
For the Overall Platform: AI-driven demand forecasting and fraud detection enhance operational efficiency and security. For marketing and ad: 30% reduction in customer reacquisition costs, by deploying 75% of its advertising budget using AI strategies.
Success metrics: Prosus's iFood has hit a milestone of delivering more than 100 million orders in August. That is a more than 30% increase year-over-year. Cost to deliver have been reduced by 16%. All while customer satisfaction increased.
AI in Search and Discovery: Traditional keyword-based searches have evolved into more sophisticated systems powered by AI. Semantic, image, and voice searches now make product discovery seamless, improving user engagement and retention. Example with OLX.
Personalization: AI-based recommendation engines tailor product suggestions based on user behavior, preferences, and historical data. This enables marketplaces to create personalized shopping journeys, boosting user satisfaction and conversion rates.
How is Europe’s marketplace landscape evolving compared to other regions like India or US?
We’re seeing European marketplaces prioritize sustainability and trust, while India focuses on growth and accessibility, and the U.S. on innovation and specialization. The EU is the world's largest exporter of manufactured goods and services, and is the biggest export market for around 80 countries.
India is an interesting market and one we’ve been investing in for more than a decade. Its e-commerce landscape has expanded rapidly due to a variety of factors - mobile-first access to the internet helped the market leapfrog traditional pace of internet (broadband) penetration, and there has been a strong government push to promote digital payments and building supporting infrastructure including highways and logistics support networks.
We’re seeing the blending of traditional commerce with digital solutions. Mobile-first platforms are critical here, as many consumers access the internet via smartphones, and companies are innovating to meet local needs, offering everything from hyperlocal delivery to vernacular language support. This model is democratizing access for small businesses, allowing them to reach new customers. For example, A huge proportion of shopping in India is done through mom-and-pop shops - 4.5mn mom and pop shops in the country.
Another interesting trend is the rise of social commerce. Consumers are not just buying products; they’re engaging with brands and sellers via platforms like WhatsApp and Instagram. WhatsApp has one of the highest market shares in India, and the same for Instagram.
How exactly is AI reshaping shopping habits and enhancing user engagement in these digital platforms?
AI has fundamentally transformed how users interact with digital marketplaces, enhancing personalization and streamlining the user experience. We’re again excited about agents.
Agents - Conversational AI and Virtual Assistants**:** Chatbots and virtual assistants provide real-time support, helping users with product discovery and offering personalized recommendations. This is probably the area of fastest development in AI, agents can operate on both the buyer and seller side.
Search Innovation: AI has advanced search functionality, allowing users to search via natural language, voice, or images. This capability makes the shopping process more intuitive and boosts engagement, especially in sectors like real estate, where visual search and interactive tours are becoming more common.
Better recommendations: AI-powered systems analyze user behavior and preferences to deliver curated shopping experiences. This level of personalization not only improves user engagement but also leads to higher conversion rates.
Where do you see the most promising investment opportunities in Europe’s AI-driven marketplaces?
Operational efficiencies. For example, Photoroom supports European marketplaces by enabling sellers to enhance product images using AI. For instance, on food delivery platforms or shopping platforms like Zalando or Vinted, sellers can quickly remove backgrounds, create uniform product visuals, and batch-edit photos. This streamlined image editing improves the quality of product listings, making them more attractive to buyers, boosts sales and allows businesses to scale their operations efficiently. For food delivery, last mile delivery and logistics operations are seeing strong growth.
How do you see the future of AI-driven marketplaces in Europe? What should investors be on the lookout for?
Localized AI Solutions: Europe’s fragmented regulatory landscape will require AI solutions tailored to specific legal and cultural contexts. Companies that can navigate this complexity while leveraging AI for personalization and compliance will have a competitive advantage.
Immersive Shopping Experiences with Extended Reality: AI-powered extended reality devices are likely to create immersive shopping environments, particularly in sectors like real estate and automotive. Virtual tours and 3D product views could significantly enhance user interaction with digital marketplaces.
Trust and Transparency: AI tools focused on fraud detection, price transparency, and secure transactions will be essential in maintaining consumer trust. As AI-driven fraud becomes more sophisticated, robust AI security measures will be crucial for success.
Again, Autonomous Shopping Agents: AI-driven agents capable of performing shopping tasks autonomously—such as finding the best prices, making purchases, and handling negotiations—could disrupt traditional marketplace models, creating new, streamlined shopping experiences.
The Person Behind
Always treat everyone you meet with respect.
Every meeting is an opportunity to learn something, and you can learn something new from anyone.
3 biggest learnings in venture
Everyone we talk to is human. Reiterating - treating everyone with grace and respect pays the biggest dividends.
The team is the most important factor to business success.
Even the rocket ship companies have their ups and downs, be even keeled during both phases, during both swings.
Strongly held belief you’ve recently had to change your mind on
Fully remote culture can work. I think this is really tough.
Recaps can never work. I’ve seen some scenarios recently where this has been different.
You can solve valuation disconnects with structure. I’ve been against this before, and recently I’ve seen situations that have reinforced that view.
gener8tor Luxembourg Accelerator Unveils 2024 cohort at Luxembourg Venture Days
Guest post by Menachem Tabanpour, Managing Director at gener8tor Luxembourg
LUXEMBOURG - Four innovative startups spanning diverse industries took the spotlight during the 2024 gener8tor Luxembourg Investment Accelerator Showcase, part of Luxembourg Venture Days on Oct. 17. The cohort features Luxembourg-based: Äerd Lab; BIM-Y; and Vestis Labs; and Germany-based CyberSeQ.
The gener8tor Luxembourg accelerator program is committed to strengthening the entrepreneurial ecosystem in Luxembourg and the European Union. It offers participating companies essential support, coaching, and capital to scale their businesses. The intensive 12-week program provides startups with one-on-one coaching from the gener8tor team, business development support, access to a network of mentors and investors, €100,000 in funding and over $1 million in deals and perks.
Selected from more than 200 applications, these four startups were chosen based on their potential for growth, investor readiness, market opportunities, and their focus on driving change at corporate, government, and community levels. The program prioritizes companies embracing sustainability to transform traditional industries.
“Investing in early-stage startups is not just about capital—it's about believing in the transformative potential of entrepreneurs. Luxembourg’s startup ecosystem, combined with programs like gener8tor, allows founders to access the resources and mentorship they need to grow globally. We are proud to support ventures at this stage, as they are the ones driving real change and innovation," said Christophe Bianco, Head of Sales & Bids of the Cyber Digital Solutions Business Line at Thales, and Limited Partner in the gener8tor Luxembourg fund.
"We are honored to invest in and work with these four startups," added Menachem Tabanpour, Managing Director of gener8tor Luxembourg. "I am continually impressed by the innovations these companies bring and the perseverance of each founder. We are excited to support these entrepreneurs for years to come.".
The program kicked off on May 5, culminating with the startups presenting their pitches at the showcase on Oct. 17 at Lux Expo during Luxembourg Venture Days.
What are the real frustrations of Emerging Managers?
by Andreas Munk Holm, creator turned angel LP and the founder of EUVC.
I sometimes get some interesting feedback from the venture community. This week, I got one from a frustrated emerging manager that I thought I wanted to share. A big point for both the LPs and the service providers out there — hope it leads to some reflection.
THE LAND of LIQUIDITY: Europe & US Divergence. Part 4.
by Owen Reynolds from Teklas Ventures, the VC arm of a family office associated with Teklas. | Originally published on EUVC.
The European tech startups I talk to on a daily basis are almost always aimed towards the US. I should admit I also advice most startups to target US markets. But there are real tangible reasons.
On the surface, America is an easier target. As a large, high-disposable income country with a single language and common regulators, the rules of the game for a Delaware C-Corp are plain vanilla. US corporates are more acquisitive and more likely to create partnerships with even early-stage companies, further feeding its culture of risk.
But perhaps more importantly is that this is the land of liquidity.
Some things are made for platforms - music, cabs & pizzas. But fund solutions aren’t one of them. Their individual client focus and regulation-first approach is your guarantee for flexible solutions accommodative to a broad range of deal and client specifics. The kicker? Prices that match any of the shelf-products in the market.
🧠 Upcoming EUVC masterclasses
Advanced small-group sessions that take you from good to great. Lectured by leading GPs, LPs & Experts.
✍🏻 EUVC Masterclass | VC Fund Terms & KPIs: Mastering Metrics for Fund Success
Join us for an in-depth session on VC Fund Terms & KPIs: Mastering Metrics for Fund Success. This workshop will focus on the key performance indicators (KPIs) that drive VC fund performance and the critical timing for measuring these metrics. You’ll gain insights into what matters most to Limited Partners (LPs) and what General Partners (GPs) should focus on internally for effective fund management.
The session will also cover how to set up a comprehensive dashboard, including portfolio tracking, to streamline your reporting and ensure your fund’s success.
Special offer: Join the EUVC Community for 25€ per month and get 100€ off while enjoying access to on-demand masterclasses, tools & templates and monthly AMAs with leading GPs, LPs & experts.
✍🏻 EUVC Masterclass | Marketing & VC Fund Narrative
Your brand is everything. It’s what sets you apart, helps you win the best deals, attract LPs, and ultimately drive your growth. For emerging fund managers, building a credible brand and establishing the right marketing foundations early on are game-changers. Yet, many don’t know where to begin.
Your fund’s narrative is what makes the difference between an LP glancing at your deck or deciding they’re ready to write a check. It’s your brand that makes LPs feel confident they’re partnering with someone who knows how to make magic happen.
We’re planning a masterclass on building strong marketing foundations with a top industry leader. If enough people show interest, we’ll make it happen.
💬 EUVC Community | LP AMA with Vinthera’s Rodrigo Ferreira
Join us for an exclusive AMA session with Rodrigo Ferreira Investment Director at Vinthera.
Prior to joining Vinthera, Rodrigo Ferreira gained 5 years of experience backing VC fund managers across the globe as Principal and Investment Team lead at boutique fund of funds firm BFP. There he played a key role in over 20 fund investments and managed a portfolio of more than 50 funds with top decile aggregate returns.
This 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.
🤗 Join the EUVC Community
Looking for niche, high-quality experiences that prioritize depth over breadth? Consider joining our community focused on delivering content tailored to the experienced VC. Here’s what you can look forward to as a member:
Exclusive Access & Discounts: Priority access to masterclasses with leading GPs & LPs, available on a first-come, first-served basis.
On-Demand Content: A platform with sessions you can access anytime, anywhere complete with presentations, templates and other resources.
Interactive AMAs: Engage directly with top GPs and LPs in exclusive small group sessions — entirely free for community members.
🏔️ EUVC Nordic Getaway on June 5 - 8, 2025
🗓️ The VC Conferences You Can’t Miss
There are some events that just have to be on the calendar. Here’s our list, hit us up if you’re going, we’d love to meet!
GoWest | 📆 28 - 30 January 2025 | 🌍 Gothenburg, Sweden
Investors Summit Bilbao 2025 | 📆 | 11 - 12 February 2025 | Bilbao, Spain
GITEX Europe 2025 | 📆 23 - 25 May 2025 | 🌍 Berlin, Germany
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