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Beyond Lovable and Mistral: 21 European startups to watch
Europe should be known for BottleCap AI, not bottle cap memes. With its tongue-in-cheek name, this Prague-based AI startup is one of the teams that VCs think you should know.
It is not that European startups never cut through the noise — Lovable and Mistral AI are proof of it. But there are many more that don’t have nine digits in annual recurring revenue yet and that insiders are still tracking very closely.
That’s where this list comes in. Over the last few weeks, we asked investors at some of Europe’s best known venture funds to recommend two startups each: one from their portfolio (because they liked the startup well enough to invest) and one outside of it (because they are the startup experts but can’t invest in them all). We also threw in a few picks of our own.
From pre-launch to unicorn, these startups are at different stages in their journey, and from different sectors. Due to our methodology, they may not reflect where the region’s hottest hubs are, but they do reflect how deep tech talent could help Europe play its own cards in the AI race.
Alta Ares
Recommended by Julien Codorniou, general partner, 20VC.
What it does: Alta Ares develops AI-powered counter-drone systems.
Why it’s worth watching: Defense tech has gone from pariah to trending, particularly in Europe, where the war in Ukraine was a wake-up call for armies to modernize. Alta Ares’ interceptors answer a need for cheaper solutions to detect and fight drone incursions.
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Apron
Recommended by Jan Hammer, partner, Index Ventures (investor).
What it does: Apron provides invoice management for small business owners.
Why it’s worth watching: SMBs can be a lucrative segment for fintech companies; business owners are willing to spend at least some money to save time, and there are millions of them.
Botify
Recommended by Claire Houry, general partner, Ventech (investor).
What it does: Botify helps brands increase their visibility in AI searches.
Why it’s worth watching: Companies are still scrambling to replace SEO with generative engine optimization (GEO) — but this Disrupt NY 2016 alum has already embraced the shift. Botify has competitors in its new field, such as Otterly.AI and Profound, but also big customers, from Macy’s to The New York Times.
BottleCap AI
Recommended by Julien Codorniou, general partner, 20VC (investor).
What it does: BottleCap AI develops efficiency-focused foundational LLMs and apps.
Why it’s worth watching: With a founding trio that includes an entrepreneur who sold his previous company to Meta and two AI researchers, BottleCap adopted a dual approach. The startup is building its own models and releasing apps built on top of them, including Pulse, an AI-powered news app.
Cailabs
Recommended by Flavia Levi, investment manager, Join Capital.
What it does: Cailabs develops photonics for aerospace, defense, and industrial applications.
Why it’s worth watching: Cailabs is based on advanced research on the science of light, which it now applies to faster and more robust data transmission. Backed by public and private investors, it plans to deploy 50 optical ground stations to support growing demand for laser communications with satellites.
Cala
Recommended by TechCrunch’s Anna Heim.
What it does: Knowledge graph for AI agents.
Why it’s worth watching: Cala plans to build the knowledge layer that AI agents are missing. Its founder is Elisenda Bou-Balust, a high-profile Spanish entrepreneur and AI expert who sold her previous company Vilynx to Apple in 2020.
Flower
Recommended by Pär-Jörgen Pärson, partner, Northzone (investor).
What it does: Renewable energy management.
Why it’s worth watching: Wind and solar energy are inherently variable. Flower leverages AI and battery energy storage systems to make their use more predictable. This Swedish company also recently raised over $60 million in bonds to keep on scaling.
Fundamental
Recommended by Jonathan Userovici, general partner, Headline (investor).
What it does: Foundation AI for big data analysis.
Why it’s worth watching: Fundamental’s foundation model, Nexus, focuses on helping enterprises draw insights from their data. The company just emerged from stealth in February, but it is already valued at $1.4 billion following a $255 million Series A.
Gradium
Recommended by Jonathan Userovici, general partner, Headline.
What it does: AI voice models.
Why it’s worth watching: Gradium’s AI models can be used for real-time text-to-speech that gives AI agents a voice in multiple languages. A spinout of French AI lab Kyutai, this ElevenLabs challenger raised a $70 million seed round of its own.
HappyRobot
Recommended by Pablo Ventura, general partner, Kfund.
What it does: AI agents for complex use cases.
Why it’s worth watching: HappyRobot, a startup backed by a16z and Y Combinator, is one of many building AI agents, but its focus is on making sure that these can be deployed and deliver ROI. It is headquartered in the U.S., but its three co-founders and part of its team are Spanish.
Inbolt
Recommended by Claire Houry, general partner, Ventech.
What it does: Physical AI for factories.
Why it’s worth watching: Mixing AI and robotics, Inbolt improves and expands automation in manufacturing, from the automotive industry and electronics to home goods production lines. The startup says it is already active in more than 70 factories.
Legora
Recommended by Pär-Jörgen Pärson, partner, Northzone.
What it does: AI platform for lawyers.
Why it’s worth watching: With increased competition from mainstream LLMs, legal tech will also be about marketing. Grab the popcorn for Harvey v. Legora after Legora one-upped its rival by enlisting Jude Law to be the face of its brand. That’s one point for the Swedish-born startup, which is now headquartered in New York but is still one of Stockholm’s rising AI stars.
Macrodata Labs
Recommended by Floriane de Maupeou, principal, Serena Data Ventures.
What it does: AI training data infrastructure.
Why it’s worth watching: “Every strong model starts with great data,” Macrodata Labs claims on its “coming soon” landing page. But the startup won’t build that data; its upcoming platform will provide other companies with tooling to create solid training datasets.
Multiverse Computing
Recommended by TechCrunch’s Julie Bort.
What it does: Offers compressed versions of open weight models like OpenAI, Meta, DeepSeek, and Mistral AI.
Why it’s worth watching: Multiverse Computing‘s tech takes a proven model and makes it smaller and less expensive to operate, especially on a company’s own hardware. Co-founded by CTO Román Orús, a professor at the Donostia International Physics Center, the Spanish startup has raised $250 million.
Optics11
Recommended by Flavia Levi, investment manager, Join Capital (investor).
What it does: Fiber-optic sensing systems.
Why it’s worth watching: Optics11’s technology makes it possible to monitor equipment underwater and in similarly harsh conditions. Its potential in preventing disruptions to subsea infrastructure and energy grids helped the startup secure venture debt from the European Investment Bank.
Pennylane
Recommended by Jan Hammer, partner, Index Ventures.
What it does: Finance management platform for SMBs.
Why it’s worth watching: Pennylane started out with accounting, but it has bigger plans. Like many other growth-stage fintechs, this French unicorn has expanded its scope, with the ambition to build a unified financial operating system for SMBs in Europe.
PLD Space
Recommended by TechCrunch’s Anna Heim.
What it does: Launches rockets.
Why it’s worth watching: PLD Space is part of Europe’s push for space autonomy. After successfully launching a suborbital rocket in 2023, it is currently developing a reusable orbital launcher for small satellites. Last month, the Spanish company secured a $209 million Series C round led by Mitsubishi Electric that brought its funding to more than $350 million.
Proxima Fusion
Recommended by Daria Saharova, general partner, World Fund.
What it does: Nuclear fusion.
Why it’s worth watching: The race for an alternative to nuclear fission is on, and Proxima Fusion is one of Europe’s strongest contenders. The VC-backed company recently secured $460 million from the state of Bavaria to support its plans to build a fusion power plant in Europe, starting with a demonstration stellarator near Munich.
Roofline
Recommended by Floriane de Maupeou, principal, Serena Data Ventures (investor).
What it does: Software for AI model deployment on advanced chips.
Why it’s worth watching: University spinout Roofline bridges the gap between AI and an increasingly fragmented hardware layer with software that lets users deploy models efficiently on different types of chips.
Space Forge
Recommended by Daria Saharova, general partner, World Fund (investor).
What it does: Space Forge manufactures semiconductor components in space.
Why it’s worth watching: In-space manufacturing is on the rise — for pharmaceutical applications and for chips, which are Space Forge’s focus. With extra tailwinds from geopolitics, the startup is already forging ahead: It recently generated plasma in low Earth orbit.
Theker
Recommended by Pablo Ventura, general partner, Kfund (investor).
What it does: Robots as a service.
Why it’s worth watching: Theker is one of several startups backed by Zara owner Inditex through a dedicated fund managed by Mundi Ventures. Theker’s AI-enabled robots could help the retail giant improve its logistics, but the startup is also pursuing use cases in waste management and food and beverage production.
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