Welcome to a new episode of the EUVC podcast, where our good friends Dan Bowyer and Mads Jensen from SuperSeed have a discussion with Lomax Ward, General Partner at Outsized Ventures, to 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.
Conquer Corsica alongside Ben Saunders
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-breaking polar explorer Ben Saunders, challenged by our ex-SAS commander, and discover how to connect in an introductory deep work session with GOAT-investor Fred Destin.
✍️ Show notes
Earnings season: tech stocks face market jitters
The latest earnings season has been a mixed bag for tech giants. Palantir surged 24% on bullish AI-driven government contracts, while Google fell 7%, missing cloud growth expectations (30% vs. 35%) and announcing a $75B CapEx spend, raising concerns about efficiency. AMD dropped 7% after missing data center revenue targets, fueling doubts over its AI competitiveness. ARM posted 19% revenue growth but fell 2% due to a downgraded full-year outlook, with only 10% of its shares freely traded. Meanwhile, ASML’s €9B sales and €7B in bookings showcased European semiconductor strength, nearly tripling last quarter’s numbers.
In broader markets, Spotify jumped 36% YTD, with revenue up 20% YoY to $4B and MAUs hitting 670M. European stocks outperformed the U.S., with fund inflows hitting a 25-year high, as Stoxx 600 gained 6% vs. the S&P 500’s 3%. With AI spending accelerating, semiconductor battles intensifying, and Europe finally gaining investor confidence, is this a turning point or just a temporary shift?
Cherry Ventures Raises $500M, consolidating its role in European VC
Berlin-based Cherry Ventures has closed its latest fund, Cherry V, at $500M, marking a significant jump from its $300M fund in 2022. The firm, founded 13 years ago, operates out of Berlin, London, and Stockholm, focusing on early-stage investments while also deploying capital into growth-stage opportunities for portfolio winners.
This raise positions Cherry among Europe's rising VC powerhouses, gradually moving from an upstart to an established player alongside firms like Index, Atomico, and Accel. With its operator-led model, Cherry continues to build a strong presence in the European startup ecosystem, proving that top-tier funds can scale in the region despite broader market headwinds.
German Election Shifts Landscape for Tech and Economy
Germany’s upcoming election is reshaping its economic and tech policies as centrist parties struggle to deliver, opening space for populist movements like the far-right AfD, now polling at 20%. The AfD has proposed withdrawing from the Eurozone, rejecting a digital euro, deregulating crypto, and cutting taxes, while the Christian Unions (CDU/CSU) push for investment tax incentives. Meanwhile, the SPD is focused on "Made in Germany" tax breaks, particularly for the auto industry, raising questions about vote-buying vs. real policy shifts.
For tech and startups, immigration is the key issue. The AfD-backed motion on border control and expulsion of undocumented migrants, the first of its kind, prompted a rare intervention from Angela Merkel, warning of its implications. As the UK struggles with a worker shortage in housing and infrastructure, Germany risks losing top international talent, potentially stifling its startup ecosystem and innovation-driven industries. The big question: Will Germany lean into growth-oriented policies, or will restrictive measures dominate?
More Nuclear power is coming to the UK
The UK government is removing regulatory hurdles to accelerate nuclear power, aiming to build mini-nuclear reactors and expand beyond the eight pre-approved sites. This marks a shift after a 30-year gap in new nuclear projects, with China building 29 reactors and the EU planning 12. Hinkley Point C, still under construction, has faced years of delays due to excessive red tape, including a 30,000-page environmental report. Now, a Nuclear Regulatory Taskforce will streamline approvals and report directly to the Prime Minister, ensuring faster deployment.
For tech and AI, the impact is significant—small modular reactors (SMRs) could be co-located with energy-intensive industries like AI data centers, tackling soaring electricity prices, which in Europe are double the U.S. rate. While climate groups remain cautious, the policy shift signals long-term energy stability. However, 14 of 15 existing plants will start decommissioning by 2030, raising questions about short-term impact. With 1.5 million homes to build, Heathrow’s expansion, and nuclear sites on the rise, will the UK need to revisit immigration policies to meet workforce demands?
UK’s AI plan: big ambition, but what’s still missing?
The UK government is positioning itself as a global AI leader, with a bold ambition to drive AI adoption across government and encourage public sector investment in emerging technology. The strategy includes practical steps to build capability, a push for government to be a customer, and a focus on infrastructure, public data, and regulation. No.10’s message is clear: AI is a priority, and barriers must be removed to accelerate development.
However, key gaps remain. Venture capital’s role is underemphasized, raising concerns about how to unlock more capital for scaling AI startups. Talent and immigration remain unresolved—can the UK reclaim its position as Europe’s top destination for AI talent? Additionally, with the government under financial strain, there’s a missed opportunity to drive efficiency through AI adoption. As the UK looks to balance the books while competing in the AI race, issues like energy costs, capital markets, and ease of doing business must be tackled head-on.
Is the UK an incubator economy? And does it matter?
The UK risks becoming an “incubator economy” where startups develop locally but scale and exit elsewhere, particularly in the US. Reports suggest this is not as widespread as commonly assumed—only 6% of VC-backed startups relocate across borders, but they represent 17% of all startup value, with 85% of movers heading to the US. The main factor? Investor influence—startups often follow pre-move investors, and those that relocate raise more funding than those that stay put.
Rather than choosing between the US and EU, the UK needs to align closely with both to retain talent, capital, and market access. The challenge isn’t just startups leaving—it’s how to create conditions where more scale here. The UK has long seen high-profile acquisitions (Solexa, DeepMind, Magic Pony), reinforcing the need for stronger capital markets, competitive financing conditions, and talent-friendly policies to ensure the country isn’t just a launchpad, but a sustainable home for global tech giants.
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🤗 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.
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💬 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!
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
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