Europe should be known for BottleCap AI, not bottle cap memes. With a tongue-in-cheek name, this Prague-based AI startup is one of the teams VCs need to know about.
That’s not to say European startups can’t cut through the noise. Lovable and Mistral AI prove this. However, there are more cases where annual recurring revenue is not yet in the nine figures and is still being closely tracked by insiders.
That’s where this list comes in. Over the past few weeks, we’ve asked investors from some of Europe’s best-known venture funds to nominate two startups each. One from their portfolio (because they like startups enough to invest in them) and one outside their portfolio (because they are startup experts but they can’t invest in all of them). We also threw in a few picks of our own.
From pre-launch to unicorns, these startups are at different stages and sectors of their journey. While our methodology may not reflect where the hottest hubs in the region are, it does reflect how deep tech talent could help Europe play its cards in the AI race.
hi ares
Nominated by 20VC General Partner Julien Codorniou.
function: Alta Ares develops AI-based counter drone systems.
Why it’s worth watching: Defense technology has gone from pariah to trendy, especially in Europe, where the war in Ukraine served as a wake-up call for military modernization. Alta Ares’ interceptor is the answer to the need for a more affordable solution to detect and respond to drone intrusions.
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apron
Recommended by Jan Hammer, Index Ventures Partner (Investor).
function: Apron provides invoice management services for small businesses.
Why it’s worth watching: Small and medium-sized businesses can be a highly profitable sector for fintech companies. Business owners are willing to spend at least a little bit of money to save time, and they number in the millions.
Botify
Recommended by Claire Houry, Ventech General Partner (Investor).
function: Botify helps brands increase their visibility in AI search.
Why it’s worth watching: Companies are still working to replace SEO with generative engine optimization (GEO). But this Disrupt NY 2016 graduate has already embraced the change. Botify not only has competitors like Otterly.AI and Profound in the new space, but also has large customers ranging from Macy’s to The New York Times.
Bottle Cap AI
Nominated by 20VC General Partner Julien Codorniou (Investor).
function: BottleCap AI develops efficiency-driven native 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 has taken a dual approach. The startup is building its own model and releasing apps built on top of it, including Pulse, an AI-powered news app.
Kale Labs
Recommended by Join Capital Investment Manager Flavia Levi.
function: Cailabs develops photonics for aerospace, defense, and industrial applications.
Why it’s worth watching: Cailabs is based on advanced research in the science of light, and now applies it to faster and more powerful data transmission. With support from public and private investors, we plan to deploy 50 optical ground stations to support the growing demand for laser communications with satellites.
collar
Recommended by Anna Heim of TechCrunch.
function: 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 renowned Spanish entrepreneur and AI expert who sold her previous company Vilynx to Apple in 2020.
flower
Recommended by Pär-Jörgen Pärson, Partner at Northzone (Investor).
function: 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 usage more predictable. The Swedish company also recently raised more than $60 million in bonds to sustain its expansion.
radical
Recommended by Headline (Investor) General Partner Jonathan Userovici.
function: Basic AI for big data analysis.
Why it’s worth watching: Fundamental’s underlying model, Nexus, focuses on helping businesses gain insights from their data. The company just emerged from hiding in February, but is already valued at $1.4 billion following a $255 million Series A.
gradium
Recommended by Headline General Partner Jonathan Userovici.
function: AI voice model.
Why it’s worth watching: Gradium’s AI models can be used for real-time text-to-speech to provide AI agents with speech in multiple languages. This ElevenLabs challenger, a spin-off from French AI lab Kyutai, has raised a $70 million seed round of its own.
Happy Robot
Recommended by Kfund General Partner Pablo Ventura.
function: AI agents for complex use cases.
Why it’s worth watching: HappyRobot, a startup backed by a16z and Y Combinator, is one of many companies building AI agents, but is focused on ensuring that these agents can be deployed and deliver ROI. Although we are headquartered in the United States, our three co-founders and some of our team members are Spanish.
bolted on
Recommended by Claire Houry, General Partner at Ventech.
function: Physical AI for the factory.
Why it’s worth watching: Combining AI and robotics, Inbolt improves and expands automation in manufacturing, from the automotive industry and electronics to household goods production lines. The startup said it is already active in more than 70 factories.
legora
Recommended by Northzone Partner Pär-Jörgen Pärson.
function: AI platform for lawyers.
Why it’s worth watching: As competition from mainstream LLMs increases, legal technology is also about marketing. After Legora took its competition to the next level by recruiting Jude Law as the face of the brand, Harvey v. Grab Legora’s popcorn. That’s one point for the Swedish-born startup, now headquartered in New York but still one of Stockholm’s rising AI stars.
Macro Data Lab
Nominated by Floriane de Maupeou, Principal at Serena Data Ventures.
function: AI training data infrastructure.
Why it’s worth watching: “Every powerful model starts with great data,” Macrodata Labs claims on its “Coming Soon” landing page. But startups don’t build that data. The upcoming platform will provide other companies with the tools to create robust training data sets.
multiverse computing
Recommended by Julie Bort of TechCrunch.
function: It provides compressed versions of open weight models such as OpenAI, Meta, DeepSeek, and Mistral AI.
Why it’s worth watching: Multiverse Computing’s technology uses proven models to become smaller and reduce operating costs, especially on the company’s own hardware. The Spanish startup, co-founded by CTO Román Orús, a professor at the Donostia International Center for Physics, has raised $250 million.
Optics 11
Recommended by Join Capital Investment Manager Flavia Levi (Investor).
function: Fiber optic sensing system.
Why it’s worth watching: Optics11’s technology allows you to monitor your equipment underwater and in similar harsh conditions. Its potential to prevent disruptions to undersea infrastructure and energy grids helped the startup secure venture debt from a European investment bank.
penny lane
Recommended by Jan Hammer, Partner, Index Ventures.
function: A financial management platform for small and medium-sized businesses.
Why it’s worth watching: Pennylane started out in accounting, but has bigger plans. Like many other growth-stage fintechs, this French unicorn has expanded its scope with the ambition to build an integrated financial operating system for SMBs in Europe.
PLD space
Recommended by Anna Heim of TechCrunch.
function: Launch a rocket.
Why it’s worth watching: PLD Space is part of Europe’s drive for space autonomy. After successfully launching a suborbital rocket in 2023, we are 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, bringing its funding to more than $350 million.
Proxima Fusion
Recommended by World Fund General Partner Daria Saharova.
function: nuclear fusion.
Why it’s worth watching: The race for alternatives to nuclear fission is ongoing, 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 fusion power plants in Europe, starting with a demonstration Stellarator near Munich.
roof line
Recommended by Floriane de Maupeou, CEO of Serena Data Ventures (Investor).
function: Software for deploying AI models on advanced chips.
Why it’s worth watching: Roofline, a university spinout, bridges the gap between AI and increasingly fragmented hardware layers with software that allows users to efficiently deploy models across different types of chips.
space forge
Recommended by World Fund General Partner Daria Saharova (Investor).
function: Space Forge manufactures semiconductor components in space.
Why it’s worth watching: In-space manufacturing is increasing for pharmaceutical applications and chips, which is where Space Forge is focused. With additional geopolitical winds, startups are already ahead of the curve. Recently, plasma was created in low Earth orbit.
taker
Recommended by Pablo Ventura, Kfund General Partner (Investor).
function: 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 can help giant retailers improve their logistics, but the startup is also pursuing use cases in waste management and food and beverage production.
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