Welcome to a new episode of the EUVC podcast, where our good friends Dan Bowyer and Mads Jensen from SuperSeed in a discussion with Andrew J. Scott, Founding Partner at 7percent Ventures and Lomax Ward, General Partner at Outsized Ventures, 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.
Join Europe’s premier PE/VC conferences with Zero One Hundred Conferences!
From Vienna (Feb 18-20) to Amsterdam (Apr 2-4) and Budapest (May 14-16), the 2025 Zero One Hundred Conferences offer intimate, carefully curated networking with top decision-makers from firms like 500 Global, Balderton, EIF, Eurazeo, Id4 ventures, IOME Family Office, In-Q-Tel, KfW Capital, SOSV, Teachers' Venture Growth, UBS AM, and more!
✍️ Show notes
The Deal – Beauhurst Report on UK Equity Rounds (2017-2024)
A new Beauhurst report provides a deep dive into UK private company equity rounds between 2017 and 2024. While the headline numbers paint a grim picture, a closer look suggests more of a reset than a collapse, with AI investment standing out as the clear winner.
Key Points:
Equity Funding at a Low: The total number of UK deals dropped 24%, hitting the lowest levels since 2015. However, the decline appears to be more of an inertia-driven adjustment rather than a full-scale breakdown.
AI Boom: Investment in AI more than doubled, rising from £1.72bn in 2023 to £3.55bn in 2024, reflecting the sector’s continued dominance.
Total Investment Down: 2024 saw a 17% decrease in total announced investments, dropping from £12.6bn in 2023.
While the numbers suggest caution, the resilience in quantum and AI deals hints at a more nuanced recovery ahead. Will this trend hold, or is there still more market inertia to work through?
France AI Summit & The EU’s AI Push
The France AI Summit saw 100 countries in attendance, with 61 signing a declaration on "Inclusive and Sustainable AI for People and the Planet." However, the UK and US declined, a move widely seen as aligning the UK more closely with the US and distancing itself from EU AI regulations. The declaration focused on accessibility, ethical AI, innovation, the future of work, and sustainability, but many dismissed it as lacking real impact, with one panelist calling it a press release rather than policy. The real story was the EU's announcement of an additional €50 billion AI investment, bringing the total to €150 billion.
This is part of the InvestAI initiative, which includes four AI gigafactories, each equipped with 100,000 AI chips, intended to rival global AI powerhouses. France, aiming to be the EU’s AI leader, matched US spending per capita with €109 billion, while the UK has yet to unveil a comparable strategy despite its AI Safety Summit leadership in 2023.
Beyond research funding, Europe faces a bigger challenge—turning investment into globally competitive AI companies. Unlike the US, which relies on corporate dealmaking, the EU’s public-private partnerships risk being too bureaucratic to produce real outcomes. The panel agreed that the ideal AI strategy would combine the UK’s detailed AI roadmap, the EU’s fiscal injections, and the US’s ability to attract private capital. The debate also touched on Mistral’s new AI model, Le Chat, which failed to impress despite ambitious marketing, and DeepSeek’s open-source success, which some argue has put Europe back in the AI game.
Ultimately, the question remains: can Europe’s AI push lead to world-changing innovation, or will it get bogged down in bureaucracy?
Le Chat & Mistral’s AI Comeback
Mistral’s Le Chat launched in the wake of DeepSeek’s success, coinciding with the France AI Summit in what seemed like a strategic comeback. Two weeks ago, there were rumors that Mistral was up for sale, with some seeing DeepSeek’s launch as an embarrassment for European AI. Now, Mistral is back with its first consumer product, promising flash answers with the fastest response time of any AI—1,000 words per second. The demo, which showcased Le Chat writing the Snake game in Python, looked impressive, though independent users struggled to replicate the performance.
While the product demonstrates European AI ambition, many question whether it has arrived too late. Its AFP partnership ensures compliance with GDPR, but some worry this limits its reach and brand power, especially compared to US competitors. Early users have also complained that it feels ‘boring’ to use, lacking the personality or edge of its rivals.
Despite the skepticism, Mistral’s success is critical for European AI. Open-source remains Europe’s best bet, given its strong academic talent and regulatory environment. DeepSeek’s recent breakthrough may have been the bigger catalyst, but Mistral’s progress signals to European founders that they can start, raise, build, and scale globally competitive AI companies. The $1 billion Mistral has raised is dwarfed by the $40-$60 billion raised in the US AI sector, but its execution proves that Europe can still deliver—even on a smaller budget.
With the EU deploying €50 billion annually into startups, some argue this is exactly where more public AI investment should flow. France appears determined to lead, with $31 billion from UAW fueling local AI momentum, and let's not forget that Hugging Face originated in France. While Le Chat may not be a game-changer yet, it’s a necessary step in proving that European AI can still compete on the world stage.
AI Corner – The Next Wave of AI Innovation
The frontier AI labs are gearing up for major releases, with Sam Altman confirming that GPT-4.5 is on the way—expected to launch in the next 4 to 8 weeks. Altman calls it the last “non-chain of thought” model, with GPT-5 set to follow as a true omni-model that can “do it all.” This marks a shift towards fully reasoning-based AI, eliminating the need for multiple model versions or manual selection.
Meanwhile, Elon Musk’s xAI is preparing to launch Grok 3, which is built on the Colossus supercluster—100,000 GPUs assembled at record speed last year. Early insights suggest Grok 3 will be a major leap forward, and AI enthusiasts are eager to test it.
These advancements come at a time when reasoning capabilities are becoming more critical than ever, especially after DeepSeek’s impressive open-source push. More advanced AI models mean higher inference loads, more processing power, and exponentially greater capabilities. With 2025 shaping up to be a year of major AI breakthroughs, the landscape is evolving fast.
Given how much of our discussions revolve around AI, we’re introducing “AI Corner” as a dedicated space to cover the latest from the world’s leading AI labs—so buckle up, because the innovation train isn’t slowing down anytime soon!
The NATO Fund & Europe’s Defence Tech Boom
Venture capital investment in European defence and security tech hit a record-breaking $5.2 billion in 2024, marking a major shift in how defence startups are funded. Traditionally, dual-use applications (civilian and military) were necessary to secure private capital, but now, direct defence investment is no longer a taboo. This shift comes amid significant increases in European defence spending, with total military budgets in the EU rising from €279 billion in 2023 to a projected €326 billion in 2024—a 17% jump.
Meanwhile, Europe and Canada have raised defence budgets by 20%, with Poland leading the charge, spending over 4% of GDP on defence, the highest in the EU. However, despite these increases, Europe still lags behind NATO’s 2% GDP guideline, and Russia alone outspends all of Europe on defence. Supply chain constraints and economic pressures remain key concerns, but with Trump hinting at European allies needing to hit 5% of GDP, the EU could be looking at a €650 billion annual defence budget—bringing it much closer to US levels.
Is AI Making Us Dumber - Debate
A new report from Microsoft and Carnegie Mellon surveyed 319 knowledge workers across 936 AI-assisted tasks and found a growing risk of critical thinking atrophy. The study identified three major trends:
The Confidence Paradox – The more people trust AI, the less they critically evaluate its responses, even though AI makes analysis easier. Interestingly, those with higher self-confidence engage in more critical thinking, even when it requires extra effort.
Low-Stakes Risk – People skip critical thinking on minor AI-assisted tasks but save their scrutiny for high-stakes decisions. The problem? Lack of daily practice leads to skill erosion, meaning that when critical thinking is most needed, people are least prepared.
Effort Transformation – AI shifts cognitive effort from execution to oversight. Workers now spend less time gathering information and performing tasks but more time verifying AI responses, integrating answers, and managing workflows.
This shift raises a key question: Are we losing critical thinking skills? The study suggests AI is reshaping how we work—if managed well, oversight-driven work could improve efficiency, reduce fatigue, and free up professionals for more strategic thinking. But if poorly managed, it risks eroding hands-on skills, increasing AI dependency, and weakening deep analytical thought. As AI advances, will we become better decision-makers—or just better at approving what AI suggests?
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.
🤗 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.
💬 Community event | LP AMA with Christian Hjort Pedersen
Join us for an exclusive AMA session with Christian Hjort Pedersen, formerly VC Fund Investor at IIP Denmark.
Having allocated more than 600 M USD to top decile early-stage VC funds in US and Europe within tech and life sciences, Christian brings an understanding of the global venture markets and what it takes to build a true franchise better than most others.
This AMA is part of our ongoing series of small-group sessions designed to foster deep, meaningful discussions within the VC community. Reserve your spot now to ensure you don’t miss this opportunity.
⏰ Feb. 18 | 💻 Online | THIS EVENT IS FOR EUVC COMMUNITY MEMBERS ONLY.
✍🏻 Masterclass | VC Fund Finance: Essential Tools, Strategies and Applications
Join us for an in-depth session on VC Fund Finance: Essential Tools, Strategies and Applications. Fund finance has become an essential consideration for fund managers navigating the complexities of venture capital. Offering tools such as Subscription Lines (also called Capital Call lines), NAV financing, and GP Support/Co-invest financing, fund finance provides structured solutions to manage liquidity, bridge capital needs, and align investment strategies with long-term goals.
This masterclass provides a comprehensive overview of fund finance, its origins, and its application across the lifecycle of a fund. Designed for fund managers at varying stages, the session balances conceptual frameworks with actionable insights, making it particularly valuable for second-time or larger fund GPs, while also addressing the needs of emerging managers exploring fund finance for the first time.
⏰ Feb. 26 | 💻 Online | Trusted and praised by industry leaders and fund managers. Here’s what some of them had to say about working with James.
✍🏻 EUVC Masterclass | Marketing Foundations for Fund Managers
Join us for an engaging workshop tailored for fund managers looking to institutionalise their marketing approach and craft a category-defining investment brand.
This 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.
This 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.
⏰ March 13 | 💻 Online |
✍🏻 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.
That’s why we’re planning an exclusive 3-hour masterclass designed to equip emerging managers with the insights, strategies, and tools needed to tackle these challenges head-on.
⏰ Jun. 02 | 🇩🇪 Berlin | This masterclass is a side-event taking place during SuperVenture & SuperReturn.
🗓️ 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
0100 DACH 2025 | 📆 18 - 20 Feb 2025 | 🇦🇹 Vienna, Austria
0100 Europe 2025 | 📆 02 - 04 April 2025 | 🇳🇱 Amsterdam, The Netherlands
0100 Emerging Europe 2025 | 📆 14-16 May 2025 | 🇭🇺 Budapest, Hungary
GITEX Europe 2025 | 📆 23 - 25 May 2025 | 🇩🇪 Berlin, Germany
Share this post