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E586 | EUVC Summit 2025 | Itxaso del Palacio, Notion Capital: Building European Cloud Challengers

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Manage episode 507429628 series 2968392
Content provided by The European VC. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by The European VC or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

At EUVC Summit 2025, one of the most anticipated sessions broke down a powerful data set: 100 of Europe’s breakout startups. This wasn’t theory—it was company-by-company insight, straight from interviews and bottom-up analysis.

Yes, there were rogue slides.
Yes, the crowd wanted to skip to the AI part.
And yes, it delivered.

~75% of these startups are based in Germany, France, and the UK.

Despite growing noise around new hubs, Europe’s big three remain dominant. It reflects ecosystem maturity—but also a challenge: how do we better back breakout teams in the Nordics, Baltics, Southern Europe, and CEE?

For the first time in years, Fintech dropped in sector rankings.

Instead, we saw a wave of AI-native sales and marketing tools—building products that help companies grow smarter, automate go-to-market, and personalize customer acquisition at scale.

“This year’s cohort is selling before building. AI is their leverage.”

One of the most notable shifts: a significant increase in solo-founder companies.

This reflects:

  • A rise in repeat operators

  • Greater early-stage tooling

  • More confidence in focused execution

It also implies VCs may need to shift their bias—many of these founders are no longer waiting for a co-founder to “complete” them.

The moment everyone waited for: AI-native insights.

49% of these 100 startups are AI-native at their core.

This means:

  • AI is not bolted on—it's the product itself

  • Many founders have already moved beyond horizontal LLMs to verticalized applications

  • They're monetizing via use-case depth, not just model architecture

Last year’s 100 had an average of 25 employees per company.
This year’s cohort? Just 14. That’s a 40% drop.

But don’t mistake that for weakness—roles are more specialized, and teams are more surgical. These aren’t MVPs—they’re hyper-focused execution machines.

“Today’s teams are smaller, sharper, and trained on efficiency from Day 1.”

Across hundreds of founder interviews, one theme stood out:

Tool loyalty is low.

Founders are switching infra, models, APIs, and tooling with no hesitation.
That’s not a sign of flakiness—it’s a sign of rapid evolution, where AI-native teams optimize continuously.

Controversially, the speaker closed with a contrarian take:

“I believe European AI regulation will actually accelerate enterprise adoption.”

Why?

  • Clarity breeds confidence

  • Corporate buyers need frameworks

  • Knowing what’s allowed = faster go/no-go decisions

In a twist, Europe might become the first-mover on enterprise AI—not in spite of regulation, but because of it.

Final Message:

“AI-native is not a trend. It's a new category of company. And Europe is building it—faster and leaner than ever before.”

Let’s keep watching the signals. Let’s keep fueling the flywheel.

🇫🇷🇩🇪🇬🇧 Still Rule the Map📉 Fintech Cools, GTM Tools Rise🧍 Solo Founders On the Rise💡 AI-Native: Not Just a Feature—A Foundation🧑‍💻 Teams Are Leaner, Sharper🔄 Low Loyalty, High Velocity🇪🇺 Regulation: Burden or Opportunity?

  continue reading

609 episodes

Artwork
iconShare
 
Manage episode 507429628 series 2968392
Content provided by The European VC. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by The European VC or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

At EUVC Summit 2025, one of the most anticipated sessions broke down a powerful data set: 100 of Europe’s breakout startups. This wasn’t theory—it was company-by-company insight, straight from interviews and bottom-up analysis.

Yes, there were rogue slides.
Yes, the crowd wanted to skip to the AI part.
And yes, it delivered.

~75% of these startups are based in Germany, France, and the UK.

Despite growing noise around new hubs, Europe’s big three remain dominant. It reflects ecosystem maturity—but also a challenge: how do we better back breakout teams in the Nordics, Baltics, Southern Europe, and CEE?

For the first time in years, Fintech dropped in sector rankings.

Instead, we saw a wave of AI-native sales and marketing tools—building products that help companies grow smarter, automate go-to-market, and personalize customer acquisition at scale.

“This year’s cohort is selling before building. AI is their leverage.”

One of the most notable shifts: a significant increase in solo-founder companies.

This reflects:

  • A rise in repeat operators

  • Greater early-stage tooling

  • More confidence in focused execution

It also implies VCs may need to shift their bias—many of these founders are no longer waiting for a co-founder to “complete” them.

The moment everyone waited for: AI-native insights.

49% of these 100 startups are AI-native at their core.

This means:

  • AI is not bolted on—it's the product itself

  • Many founders have already moved beyond horizontal LLMs to verticalized applications

  • They're monetizing via use-case depth, not just model architecture

Last year’s 100 had an average of 25 employees per company.
This year’s cohort? Just 14. That’s a 40% drop.

But don’t mistake that for weakness—roles are more specialized, and teams are more surgical. These aren’t MVPs—they’re hyper-focused execution machines.

“Today’s teams are smaller, sharper, and trained on efficiency from Day 1.”

Across hundreds of founder interviews, one theme stood out:

Tool loyalty is low.

Founders are switching infra, models, APIs, and tooling with no hesitation.
That’s not a sign of flakiness—it’s a sign of rapid evolution, where AI-native teams optimize continuously.

Controversially, the speaker closed with a contrarian take:

“I believe European AI regulation will actually accelerate enterprise adoption.”

Why?

  • Clarity breeds confidence

  • Corporate buyers need frameworks

  • Knowing what’s allowed = faster go/no-go decisions

In a twist, Europe might become the first-mover on enterprise AI—not in spite of regulation, but because of it.

Final Message:

“AI-native is not a trend. It's a new category of company. And Europe is building it—faster and leaner than ever before.”

Let’s keep watching the signals. Let’s keep fueling the flywheel.

🇫🇷🇩🇪🇬🇧 Still Rule the Map📉 Fintech Cools, GTM Tools Rise🧍 Solo Founders On the Rise💡 AI-Native: Not Just a Feature—A Foundation🧑‍💻 Teams Are Leaner, Sharper🔄 Low Loyalty, High Velocity🇪🇺 Regulation: Burden or Opportunity?

  continue reading

609 episodes

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