The European VC

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


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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.

🇫🇷🇩🇪🇬🇧 Still Rule the Map

~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?

📉 Fintech Cools, GTM Tools Rise

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.”

🧍 Solo Founders On the Rise

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.

💡 AI-Native: Not Just a Feature—A Foundation

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

🧑‍💻 Teams Are Leaner, Sharper

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.”

🔄 Low Loyalty, High Velocity

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.

🇪🇺 Regulation: Burden or Opportunity?

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.



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