Welcome back to another episode of Upside at the EUVC Podcast, where Dan Bowyer, Mads Jensen of SuperSeed, Lomax Ward of Outsized Ventures and Andrew J Scott of 7percent Ventures, and Lomax unpack the forces shaping European venture capital.
This week’s conversation spans the spectrum, from AI moratoriums and political overreach to funding freezes, LP pullbacks, and the question of whether Europe still dares to dream big.
The crew digs into whether regulation is protecting society or suffocating innovation, the chilling effect of capital retreat, and how optimism can be rebuilt amid macro fatigue.
🎧 Here’s what’s covered
00:41 The “AI Pause” Debate: Can governments ever pause technology? Why moratoriums sound moral but stall momentum.
05:25 Europe’s Fear Reflex: The rise of “safety-first” politics and how overregulation is quietly killing risk appetite.
09:57 LP Freeze Frame: Europe’s institutional capital dries up as funds extend cycles and why secondaries and NAV loans are back in fashion.
13:36 The Optimism Deficit: How founders are stuck between doomist media and cautious investors, and why conviction is now a superpower.
17:59 Policy Paralysis: The mismatch between innovation speed and Brussels process: can Europe’s bureaucracy ever run at startup pace?
22:44 The Deep Tech Divergence: Climate tech, quantum, and AI hardware get hot, but early checks are scarcer than ever.
27:32 Founders as Statesmen: Why European founders must now act as ambassadors for progress, defending the right to build.
32:18 The Politics of Optimism: Why Europe’s next unicorns will be built by those who ignore the headlines and build through doubt.
37:20 AI Regulation & Reality: The EU AI Act’s new interpretive layer, compliance theater vs. competitive advantage.
42:48 The Great European Reset: Why this downturn might finally force quality, discipline, and depth into the ecosystem.
✍️ Show Notes
AI Moratoriums: The Mirage of Control
Calls for “AI pauses” continue across Brussels and Washington, but as Mads notes, “you can’t legislate curiosity.”
Europe risks falling behind by treating innovation as a threat rather than a tool. The team debates whether AI moratoriums serve ethics or optics.
“Regulators talk about ‘slowing down’ AI. Meanwhile, startups in the US and China are building the future we’ll later import.” — Mads Jensen
Funding Winter, Part II
Q4 data shows continued softness in venture deployment. LPs remain frozen as macro uncertainty persists and fund cycles elongate.
The rise of NAV loans, continuation funds, and GP-led secondaries signals survival mode across mid-stage managers.
“The denominator effect didn’t just kill liquidity — it killed confidence.” — Dan Bowyer
Europe’s Optimism Problem
The team frames the crisis not as capital scarcity but as belief scarcity.
With headlines amplifying every layoff and fund contraction, optimism itself has become a differentiator.
“In this market, optimism is an edge. Everyone else is busy predicting collapse.” — Lomax Ward
Regulation vs. Progress
The EU’s AI Act, the Digital Markets Act, and the upcoming Digital Tax all signal intent — but not execution.
The problem: too few policymakers with actual tech literacy.
“Europe doesn’t lack ambition on paper — it lacks people who can code it into reality.” — Andrew Beebe
Deep Tech Divergence
While consumer VC cools, hard science is heating up.
Quantum, AI chips, and materials science are attracting sovereign and institutional money — but early-stage founders still face funding deserts.
Europe’s strength in science must be matched with risk capital that dares.
Founders as the New Diplomats
In the vacuum of political courage, founders have become Europe’s best ambassadors for progress.
From climate tech to AI, it’s founders who are reframing the narrative around growth and purpose.
“Sometimes our job is to provide courage, not just capital.” — Dan Bowyer
The Great European Reset
The downturn is forcing a long-overdue evolution: smaller rounds, sharper execution, and true partnerships between LPs, GPs, and founders.
It’s not the end of the cycle — it’s the ecosystem growing up.
“The next generation of funds will be smaller, smarter, and more patient. That’s how Europe wins.” — Mads Jensen
💡 One-Liner Takeaway
Europe’s comeback won’t be written in policy papers. It’ll be built by founders who choose courage over caution and optimism over permission.
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