Welcome to a new episode of the EUVC podcast, where our good friend Dan Bowyer from SuperSeed meets with Andrew J. Scott, Founding Partner at 7percent Ventures, Lomax Ward, General Partner at Outsized Ventures, and Dilek Dayınlarlı, General Partner at ScaleX Venture,s to cover recent news and movements in the European tech landscape 💬
Here’s what’s covered:
01:31 Recent News and Highlights
02:38 European Defense and Tech Investments
07:41 UK and Turkish Startup Ecosystems
30:42 Capital Efficiency in Europe vs. Silicon Valley
31:34 Navigating the Middle of the Portfolio
34:57 Insights from the 2024 PitchBook Report
45:17 The Rise of the Turkish Startup Ecosystem
Watch it here or add it to your episodes on Apple or Spotify 🎧, with chapters for easy navigation available on the Spotify/Apple episode.
Adventures and Deep Connection Await 💞
Step beyond the ordinary into a retreat that challenges and transforms you as a partner and as an individual. Ten couples will embark on an adventure of connection and shared resilience, guided by nature and a like-minded community. This is not an escape; it’s a chance to be fully present, together, in adventure and in life.
✍️ Show notes
Europe’s Tech Scene at a Crossroads: AI Ambition, IPO Hesitation, and Emerging Hubs
Across Europe, tech momentum is building on multiple fronts. Finland is laying the groundwork for its next big move with Maria 01, a major startup hub in Helsinki that will expand to 70,000 square feet by 2028. It's a nod to the growing importance of proximity and community in innovation, much like France’s Station F. Meanwhile, Northern Powerhouse Investment Fund II in the UK has wrapped up a strong first year, investing £80 million into more than 200 regional firms, vital in counterbalancing London’s dominance. Over in Menlo Park, a viral sidewalk prank featuring Mark Zuckerberg’s voice on crosswalk buttons served as comic relief, but it also subtly underscored the cultural gap between Silicon Valley and Europe's more grounded startup scenes.
On the venture side, Europe’s ecosystem is thriving but facing critical decisions. Synthesia, a UK AI video platform, hit $100M in ARR and partnered with Adobe, showing that AI here can scale globally, serving 70% of the Fortune 100. Meanwhile, Germany’s 1Komma5 joined Klarna in pausing its US IPO plans, signaling investor caution amid volatile markets. Figma, however, is going against the grain, filing confidentially for an IPO. On the capital side, the EIF shook things up by doubling down on its ban on funding weapons and ammunition, despite the EU’s push to ramp up defense tech. That restriction could ripple through venture capital, where EIF-backed funds make up around 10% of the market. All this comes as the US dollar drops 10%, subtly reshaping cross-border VC dynamics and raising questions about where Europe's tech scene is headed next.
UK’s Startup Momentum Holds Strong, But Liquidity Still Missing
The Q1 “UK Innovation Update” from Dealroom and HSBC confirms that the UK continues to lead Europe’s tech scene, pulling in $4.2B, about a third of all VC raised across the EU this quarter. But this headline number is a bit inflated by two mega healthtech deals: Isomorphic Labs ($600M, Alphabet-owned) and Verdiva Bio ($411M, GLP-1-focused). Despite this concentration, the report highlights the maturity of the UK ecosystem: a thriving founder flywheel with second-generation startups spinning out from successes like Wise, Deliveroo, and DeepMind. AI players like Synthesia and Eleven Labs show the UK’s strength isn’t just in health and fintech anymore.
Still, there’s a major issue looming: liquidity. The UK saw no notable exits this quarter, a stark contrast to the U.S., where big acquisitions like Wiz ($33B) are still happening. IPOs remain stalled, though some familiar fintech names like Monzo, Starling, and Revolut are lining up. Meanwhile, Turkey is racing up the ranks with $2.6B raised in 2024, driven by fintech, SaaS, and AI. Turkish startups are proving globally competitive while remaining impressively capital-efficient, often achieving massive outcomes with far less capital. For both countries, 2024 is shaping up to be a year of promise, if they can solve for exits.
PitchBook 2024: VC Recovery Builds
PitchBook’s 2024 report paints a detailed picture of Europe’s venture capital landscape, with strong momentum in funding but a stubborn gap in exits. The UK led again with $16B in VC investment, yet only saw £6B in exits, and much of that wasn’t even in cash. The standout exit was Eyebio’s £2.4B biotech deal, but overall, liquidity remains the glaring issue. In fact, net venture cash flows have now been negative for four straight years, a stark shift from the decade-long positive trend from 2012 to 2022. That imbalance continues to put pressure on LPs and GPs alike, especially as recycled capital is key to fueling the next wave of innovation.
On the fundraising side, the drop in new fund launches was striking—only 51 new UK funds in 2024, flat year-over-year and down sharply from 150 in 2022. The same few institutional backers—British Business Bank, British Patient Capital, and the EIF—accounted for 61 commitments, highlighting how reliant the market still is on government-backed capital. While the report’s decade-spanning data and heatmaps show a healthy ecosystem in terms of sector diversity and geography, the recurring theme is clear: unless Europe solves its liquidity challenge, the top-heavy structure of venture will remain under pressure in 2025.
Türkiye Emerges as Europe’s Most Capital-Efficient Startup Market
Türkiye’s startup ecosystem isn’t just catching up, it’s now setting the pace in early-stage venture capital across Europe. In 2024, Turkish startups raised $2.6B, a staggering 10x increase from a decade ago, making it one of the fastest rebound stories in the region. The real story lies in its capital efficiency: Peak Games turned $18M into a $1.9B exit, and Opsgenie flipped $10M into $ 300 M. These are not outliers—seed-stage valuations in Türkiye remain ~60% lower than in the US and ~22% below the EU average, giving investors more runway for every dollar invested. Meanwhile, gaming continues to shine globally with hits like Dream Games and a growing pipeline of players like Spyke and Good Job Games attracting international capital.
The flywheel effect is well underway, with successful alumni from Trendyol, Insider, and Getir now launching or backing new ventures. The ecosystem is especially strong in fintech, SaaS, gaming, and AI, with 803 AI startups active in 2024 alone. While Series A conversion rates are improving, Series B+ capital remains a bottleneck. IPOs are rare, but late-stage validation is real, with multi-hundred-million rounds from Insider and Getir, and a $1.1B exit from Hepsiburada. The government has helped via public innovation programs like TÜBİTAK’s BiGG and EIF-backed fund commitments, while cross-border syndication—particularly with UK funds—is a key opportunity moving forward. In short, Türkiye has become a standout market where big ambition meets capital discipline.
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 Herve Cuviliez | ⏰ April 23, 1:00 PM - 2:00 PM GMT+2 | 💻 Online
Know what’s going on inside LPs heads can be difficult some times. Our series of LP AMAs allows you to ask all the questions you normally hold back. Join our exclusive AMA with Hervé Cuviliez, co-founder of ID4 Ventures, in a small-group, interactive setting where you can ask real questions and get real answers.
Why attend?
Get direct insights from a seasoned LP with 20 years of experience
Learn practical tips and strategies to elevate your fundraising game
Build connections with fellow VCs and LPs in an intimate setting
Available for Members Only, Subscribe below
Join us at the EUVC Summit & Awards Show
🗓️ 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!
0100 Emerging Europe 2025 | 📆 14-16 May 2025 | 🇭🇺 Budapest, Hungary
GITEX Europe 2025 | 📆 23 - 25 May 2025 | 🇩🇪 Berlin, Germany
Share this post