For physical AI systems that must understand and interact with real objects, a major constraint is no longer model size alone. It is access to reality-grade 3D data.

For founders, this shifts the source of defensibility towards systems that capture and structure the physical world. For investors, the test is whether a company controls a scarce input, can produce it at the required fidelity and scale and can turn that capability into a defensible data or infrastructure advantage.

Standard 2D images alone cannot provide all the depth, geometry and physical properties these systems need. ALLSIDES builds this data layer by turning real objects into high-fidelity 3D models.

According to the company, its scanners automatically produce reality-grade 3D digital twins from physical objects. The process takes about five minutes per object, compared with roughly two days of manual work. The resulting assets can support physical AI, generative 3D and content creation.

But faster production is only the starting point. The real question is whether that capability compounds into a durable moat.

Four questions help test it: What must the system understand? Could equivalent data be cheaply scraped, generated or bought? What makes its production defensible? Does every deployment strengthen the underlying asset?

Listen to our conversation below with Franz Tschimben of ALLSIDES and Redstone’s Michael Brehm and Ben Scheidt to explore those questions through the ALLSIDES case.

We have also included a few updates for your agenda this week, which we hope you find valuable.

With 💖
David & Andreas

If models are increasingly accessible, look for the scarce input, infrastructure or technical capability others need to build on. These resources help founders identify where defensibility can come from and turn it into something customers will adopt.

Physical AI requires diligence beyond the model. These resources help investors test where defensibility sits across proprietary data, hardware, R&D and deployment, and whether those advantages strengthen as the company scales.

A few moments from our Copenhagen gathering during TechBBQ, where corporate venture leaders, VCs and founders came together to discuss industrial resilience, venture clienting and how corporates can engage with venture as LPs.

Thank you to everyone who joined us and shared their experience.

Balderton’s Dream Games investment shows that VCs can return capital without forcing an IPO or sale.

After Balderton won EUVC’s Exit of the Year 2025, Partner Rob Moffat shared how the firm backed the founders before traction and later achieved liquidity while preserving founder control.

Ruya Ventures is built to close deep tech’s hardest gap: moving from scientific breakthrough to commercial scale.

Ruya received EUVC’s Newcomer of the Year 2025 award, with Founder and Managing Partner Rick Hao explaining why specialist expertise, a concentrated portfolio and global supply chain support sit at the centre of its strategy.

At Love Tomorrow Summit, Hampus Jakobsson, General Partner at Pale blue dot, shared a practical framework for knowing when to reassess and when to move decisively.

Drawing on his experience as a founder and investor, he explains why progress depends on acting before certainty arrives.

Whether you’re raising your next round, seeking your next investment or looking for a strategic partner, join us at Luxembourg Venture Days on October 14–15.

We’re proud to partner with the event connecting founders, investors, corporates and institutions.

Expect practical conversations, including on:

Breedr has raised a $27 million Series B led by Partech to expand its digital livestock platform globally, taking total funding to $46.6 million.

The company already tracks more than two million cattle across ten supply chains and says its data platform can get cattle to market weight up to five months faster while reducing methane emissions by 20–30% per animal.

If you build or invest in vertical AI, real estate or construction tech, The Punch List offers a direct view into the forces reshaping the built environment.

Hosted by MeltPlan Co-Founders Kanav Hasija and Tanmaya Kala alongside developer and investor Jon Wright, the weekly podcast examines market moves, regulation and emerging technology with the people closest to the industry.