Latest news with #venturecapital
Yahoo
3 hours ago
- Automotive
- Yahoo
VanMoof is back with a new custom e-bike and rebooted repair network
Dutch e-bike startup VanMoof is back two years after bankruptcy with its first model designed under new leadership. And despite past criticism that VanMoof's over-reliance on custom parts led to the company's downfall, the S6 sticks to the brand's signature bespoke design. Today, VanMoof is betting that higher-quality custom parts, alongside a more robust servicing network, will allow it to stay true to its design-forward, tech-heavy core, while avoiding the repair and servicing pitfalls that came out of scaling a specialized product too quickly. 'I don't think there's a reason for VanMoof to exist if we're going to use off-the-shelf parts like everyone else,' co-CEO Elliot Wertheimer told TechCrunch backstage at Micromobility Europe in Brussels this week. 'We're here to push design, to have a bike that, if you've never ridden an e-bike in your life, you get on it and it's intuitive. Easy, like an iPhone.' VanMoof previously raised more than $200 million in venture capital and gained a cult following for its premium, minimalist-designed e-bikes equipped with integrated lights, batteries, and motors. VanMoof's unique selling point became its biggest liability. Like many venture-backed hardware businesses, the company grew too quickly to operate sustainably. When bikes broke down, customers were left stranded by an underdeveloped repair network and constrained supply — a consequence of the company's decision to use custom parts instead of off-the-shelf components. The startup filed for bankruptcy in July 2023. A month later it was scooped up by e-scooter maker Lavoie, a business division of McLaren Applied, which itself was formerly a part of McLaren Group that builds parts for the McLaren F1. Wertheimer said with support from McLaren Applied's Formula 1 expertise, VanMoof was able to redesign every component that had caused issues in past models, using performance data to create more reliable custom parts. Many of those parts are co-designed with large manufacturers, which not only assures quality, but also availability of parts should anything happen to VanMoof again, according to Wertheimer. In certain areas of the business, VanMoof relented to a more industry-standard approach. The company's batteries, for example, are now co-designed and manufactured by Panasonic; VanMoof only supplies the mechanical and software integration. Previously, VanMoof had led on battery design. The real critical piece, though, is an improved support network, according to Wertheimer. 'We fixed the whole business, from unit economics, logistics, and after-sale service,' Wertheimer said. 'We couldn't go out with something new before we set up the infrastructure to do so.' VanMoof has built up a network of 250 repair centers and 130 sales partners, and is focusing sales on markets like Austria, Belgium, France, Germany, Luxembourg, and the Netherlands. 'We have built a tech suite for [our repair partners] in terms of where they can buy components, a diagnostics app, a proper tracking system that tracks which parts went where, et cetera, to make warranty claims easier for them,' Wertheimer said, adding that VanMoof has set up an online training course for mechanic partners. 'That's super well set up and we're growing the network fast. We're adding 10 stores a week.' VanMoof also hopes to launch in the U.S. by the end of 2025. However, Wertheimer said those plans have stalled as the company waits to see how President Trump's tariffs policy shakes out. The company has already started taking reservations for the S6 in its current active markets, and expects to deliver the first few thousand vehicles in the beginning of August. Customers were already complaining about slow repair times before VanMoof's brief shutdown in 2023. When it went bankrupt, some customers were stranded with broken bikes; others who had put down deposits for new bikes were out hundreds of dollars. Trust in the brand plummeted. While some may never forgive VanMoof for its failures, the new S6 might might just help customers remember why they loved the brand in the first place. I gave the S6 a quick spin this week in Brussels and was delighted to finally understand why so many riders had once gone gaga for VanMoof. It's a sexy-looking bike. The S6 has the iconic VanMoof frame, made even sleeker with no visible welding. It also comes in several matte colors, including an 'electric blue' that looked more like lilac to me, and a pearl mint that Wertheimer says 'changes in the light' from white to green. 'We spent a lot of time on the colors,' he said. The tech features are also impressive. Wertheimer said the company redesigned the electronic suite with help from McLaren Applied to ensure longevity even after the bike has been through its paces in rain, cold, heat, and other conditions. The S6 platform delivers other features that VanMoof fans will recognize, like the Halo Ring which replaces a traditional display and glows different colors to keep riders informed about battery life and speed. The Halo on the S6 is much brighter, addressing complaints from past models of it being too dim in direct sunlight. New tech features include an integrated navigation that pairs the bike to an accompanying mobile app, providing turn-by-turn directions via the Halo lights and sounds. There's also a new sound ecosystem, which includes a soft, but firm, cricket-like sound that a rider can use in place of a bell to alert other road users to their presence. Anti-theft features have come standard on almost all VanMoof e-bike models, but Wertheimer says the S6 is even better. 'We have a new tracking system that's much more accurate,' he said, noting the system relies on cellular tower triangulation, GPS signal, Wi-Fi, and Bluetooth to determine location of the vehicle within two meters. Wertheimer also said VanMoof will soon introduce crash detection and other safety features. As for the ride itself, the S6's improved mechanical shifting system comes pre-tuned from the factory and automatically adjusts based on speed, allowing for smoother momentum. It also works in tandem with the bike's four pedal-assist levels. The front-wheel motor, co-developed with 'a major Japanese manufacturer,' contributes to a more natural, intuitive riding experience. And the new suspension seatpost handles bumps in the road well. For a bike that only weighs 51 pounds, it's surprisingly sturdy. And, of course, the iconic boost button adds that extra bit of oomph, making riders feel like they've just ridden over a mushroom in Mario Kart. 'When we took over VanMoof, we inherited great design, and an impressive product ecosystem,' Wertheimer said. 'We spent two years rebuilding our company and brand to reach this launch…we are ready to show the world what we can do again. That's what we see in the S6, our e-bike that can deliver on 11 years of promises.'
Forbes
5 hours ago
- Business
- Forbes
A Tale Of Two Cities In Venture Capital
Like a desert and an oasis, there is a tale of two cities in venture capital 'It was the best of times, it was the worst of times.' On the heels of Super Venture & Super Return Berlin, and a LP/GP summit in Montreal organized by Inovia, I wanted to reflect on what felt like a panoramic view of the industry, across 1) managers of VC funds 2) startups raising capital and 3) incumbents in the public markets. What struck me most wasn't any one deal or datapoint, but the duality of two starkly different realities. The technology industry today, for startups and venture capital firms alike, is best described as a tale of two cities. In venture capital, the divergence could not be more stark. Research by Pitchbook demonstrated that nine firms collected 50% of all venture funding last year. The top 30 took the vast majority, across a few hundred firms that announced raises. At SuperReturn, partners from megafunds spoke about oversubscribed raises. Meanwhile, emerging managers are scraping to survive and define their edge. As Scott Hartley, co-founder and managing partner of Everywhere Ventures told me: 'For emerging managers differentiation is key, as venture returns heavily skew due to a long tail of large outcomes. While it may seem safer to get on-base at bats, median venture returns barely outpace other asset classes. The reason allocators look at VC is for asymmetric exposure, which means providing capital to yet undiscovered drivers of the future economy.' First-time and even second-time funds have faced arguably one of the hardest fundraising markets in history. Similar research from Pitchbook suggests a risk of certain emerging managers dying off. One panelist summed it up succinctly: 'Consolidation is the new diversification.' The gulf between the haves and have-nots is perhaps even more stark in startups, the companies VCs fund. Asaf Horresh of Vintage explained during his Super Venture keynote: 'if you're AI it's 2021'. Capital is flowing freely into foundation model startups, AI infrastructure plays, and workflow automation layers. Several venture firms have reoriented their entire sourcing around AI, and LPs are watching closely. But for nearly everyone else, Asaf put it perfectly: 'you're in the desert.' Even solid companies are seeing down rounds or resorting to insider-led bridges. The bar has never been higher. While I am nervous about nosebleed valuations and non-Camel strategies- the potential for AI justified. But the capital imbalance is striking. At SuperReturn, AI was on nearly every main stage. As Arpan Punyani, Co-Founder and General Partner at Garuda Ventures told me: 'Like the transistor, cloud, or mobile, AI is a foundational enabling technology. If you're not building an AI company at some level, the bar is just incredibly high to raise venture capital now.' Carta noted that seed deals are growing scarcer, demonstrating the growing scarcity. However, average valuations, pulled up by A.I. startups have increased. The other vector in startups was geography. Today, like it or not, capital is re-concentrating in the old capitals partially because of AI: San Francisco, London, Tel Aviv. Startups in non-central ecosystems are finding it that much harder to raise capital. From side conversations, there's a growing sense that global GPs need to 'earn the right' to go abroad again. The irony (and certainly central to my day job at Fluent Ventures) some of the best startups are being built in emerging ecosystems—with less burn, less competition, and lower valuations. The bifurcation is not limited to venture. In the public markets, the 'Magnificent Seven' (Nvidia, Meta, Apple, et al.) account for the lion's share of returns. Small caps and international equities remain underloved. It's the same pattern: consolidation of value, divergence of experience. In the technology industry, the power law is the rule of the game. But the magnitude of the power law is not. As exits increase, releasing DPI, market sentiment calms, and desire for diversification outside the U.S. grows, I expect much of this to normalize. But this will take time and there will certainly be collateral damage. But, as history tells us, sometimes, the revolution begins in the second city.
Fast Company
8 hours ago
- Business
- Fast Company
What the Wright Brothers can teach science entrepreneurs about how to survive a funding pullback
What happens when venture capital and government pull back from science entrepreneurs at the same time? Many scientists think we're about to find out, and are looking at how we can preserve our country's innovative leadership. While others are pulling back, at Activate we're leaning in and asking, 'What should we teach the scientist founders we support so they can find the opportunity in this crisis?' History lesson History has a lesson for us: the U.S. saw a boom in 'deep-tech' between 1870 and 1920 even though neither venture capital nor government grants existed at that time. Moreover, much of that technology was commercialized by teams of fewer than 10 people. Consider, for example, a particularly famous startup founded by two brothers. In 1892, some of America's most famous science entrepreneurs, Orville and Wilbur Wright, capitalized on a growing craze for bicycles in the U.S. by opening a bicycle shop in Dayton, Ohio. In 1896, the U.S. Government's War Department allocated $50,000 (about $1.9M in 2025 USD) to the Smithsonian Institution, the closest thing to a national lab at that time, to develop a powered flying machine. In 1899, in response to this very public market signal and to growing competition in the bicycle industry, the Wrights began to pivot toward developing an airplane. In their historic moment, they demonstrated powered flight in November 1903 and went on to earn their first revenue (totaling about $3.8M in 2025 USD) in late 1908 and early 1909. Financing deep tech Commercializing deep tech took the same decade then that it does now. This makes sense: we can make much more complex technologies today, but the core loop of design-prototype-test-revise continues to move at the speed of human thought and observation. Without grants or venture investment, financing deep tech then was very different, but it was not impossible. The Wrights continued to own and operate their bicycle business (with substantial assistance from their sister Katherine) over their entire entrepreneurship journey, only divesting in 1908 once the airplane was sure to pay the bills. From bicycle to airplane The bicycle shop provided the funds, skills, team, and facilities needed to develop the airplane. Funds: The bicycle shop was consistently profitable, allowing the Wrights to support themselves and invest in their airplane research. Skills: The Wrights started by selling and repairing bicycles from a variety of brands, graduated to assembling bicycles from components and selling them under their own 'Van Cleve' and 'St. Clair' brands, and eventually invented components (such as improved wheel hubs) for their cycles. Team: Charlie Taylor, whose many contributions to the first airplane include designing and building its aluminum engine, began working with the Wright Cycle Co. as a contract machinist in 1898 before joining full-time in 1901. Facility: The workshop and tools in the bicycle shop doubled as the laboratory for testing and building prototypes for the first airplane. When the Wrights finally closed the bicycle shop, it was to fully convert it to a workshop for their airplane business. Today's science entrepreneurs have a lot they can learn from this model. For one, even when venture capital investment is available, opening a bicycle shop before developing an airplane is often the way to go. We're advising our Activate fellows to find products and services that customers will buy today and that build the team, skills, and assets they need to bring their transformative technologies to market. The genius of the Wright brothers wasn't just in being first in flight, but also in seeing how the airplane could grow out of their bicycle business. Three questions In my job as managing director of Activate's Boston community, I have long-term coaching relationships with 20 science entrepreneurs. Right now I'm telling them to ask themselves three questions: How do I grow the long-term value of my airplane? How do I grow the short-term value of my bicycle shop? How do I tighten the connection between the two? In an uncertain economy, supporting science entrepreneurs is more important than ever. They have the skills needed to build 'bicycle shops' that deliver unglamorous but critical products and services for the millions of deeply technical niche markets that underpin our modern world. They also have the creativity and tenacity to leverage their day-to-day work to invent entirely new industries that meet our country's most pressing needs. We need to publicly recommit to these often unsung science heroes so that we can set them—and our country—up for success.
Arab News
10 hours ago
- Business
- Arab News
Where the money is flowing: AI, agritech, and fintech set to lead Saudi venture capital ecosystem
RIYADH: Saudi Arabia's venture capital ecosystem is entering a pivotal phase of growth, fueled by a surge in domestic and international investment targeting sectors aligned with the Kingdom's Vision 2030. Agriculture tech, fintech, artificial intelligence, and clean energy are emerging as key pillars of this transformation, driven by regulatory reforms, demographic shifts, and a rising global investor appetite. The country's ambition to become a regional innovation hub is drawing sustained capital inflows, placing it at the center of the broader emerging venture market investment narrative. Domestic ambition shapes sectoral disposition Said Murad, senior partner at investment firm Global Ventures, cited Saudi Arabia's high food import dependency and its ambitions to boost domestic production as key in drawing funds to the Kingdom. 'Agritech and climate-related technologies will certainly contribute to the next phase of investment growth,' he told Arab News in an interview. Complementing this trend, Philip Bahoshy, CEO of MAGNiTT, pointed to fintech, AI, clean energy, logistics, and advanced manufacturing as areas expected to dominate future funding. 'These sectors align with Vision 2030's push for economic diversification and digital transformation,' he told Arab News, with health tech and deep tech also gaining traction due to increasing research and development support and regulatory tailwinds. AI, in particular, is emerging as a dominant investment theme in the region. According to MAGNiTT's 2025 predictions, the sector is set to double its share of venture capital funding in emerging venture markets this year, following a surge of high-profile deals in 2024. 'AI was the main driver of investment activity both in the private and public markets in the US and other mature markets in 2024,' the platform noted, referencing data from PitchBook. In the first nine months of 2024, AI accounted for 41.3 percent of US venture capital funding. In Saudi Arabia, this momentum is reflected in deals such as Intelmatix's $20 million Series A round and Amazon Web Services's planned data center investment, both signaling the Kingdom's rising stake in the global AI landscape. MAGNiTT also cited broader geopolitical and commercial developments in the AI space, including chip export agreements, as indicators of the sector's rising importance in the region. 'Based on our proprietary data, we expect AI funding to double in 2025 due to increased investor attention to innovative AI startups,' the company stated. Beyond AI, Global Ventures' investment in Iyris, an agritech company spun out of King Abdullah University of Science and Technology, illustrates the potential of local innovation to address long-standing structural challenges. 'Iyris is positively disrupting agricultural practices for mid-to-low-tech farmers, particularly in hot climates,' Murad said. The startup launched the National Food Production Initiative in 2023, partnering with SABIC and Red Sea Global to establish a sustainable farming project in Bada, Saudi Arabia, aimed at regenerating unproductive land and enhancing food security. Fintech remains another strong area of interest, supported by a digitally connected population and a push toward financial inclusion. 'With 98 percent internet penetration and 97 percent smartphone adoption among the 18-to-78-year age group, the Kingdom has one of the world's most digitally enabled populations,' Murad said. He views this as a key enabler for innovation in financial services, both consumer-facing and enterprise-driven. Focused sectors, broad appeal Capital inflows into Saudi Arabia are being driven not only by sector performance but also by global institutional interest in the region. According to MAGNiTT, firms including BlackRock, Golden Gate Ventures, and Polen Capital have already established offices or acquired licenses in the Kingdom, the UAE, or Qatar. Others, including General Catalyst and the BRICS Investment Fund, have made their investment debuts or launched dedicated MENA-focused funds. 'In 2025, we expect even more investors and asset managers to set up offices in the EVM regions, particularly Saudi Arabia and the UAE,' MAGNiTT stated, attributing this to the region's 'friendly business-enabling environment.' Deal flow in the Kingdom has grown across all funding stages. 'Saudi Arabia saw a surge in pre-seed and seed-stage funding,' said Murad, noting that demand for later-stage capital is increasing as startups validate their models and seek international expansion. Supporting this trajectory is a growing exit pipeline. In 2024, Saudi Arabia completed 42 initial public offerings, ranking seventh globally in capital raised. 'This growing pipeline of exits signals the increasing maturity of the country's capital markets and reinforces the long-term viability of its venture ecosystem,' Murad added. As international capital intensifies, local venture firms are adapting their strategies to remain competitive. 'Regional players active in the market will understand local nuances, ultimately providing a competitive advantage,' Murad said. He emphasized that investors offering operational support and showcasing portfolio success stories will be best positioned to attract international limited partners. The Kingdom's regulatory environment is increasingly seen as a strength in the region's venture capital narrative. 'Government initiatives and the regulatory framework are geared to venture capital firms investing in startups in a secure, forward-thinking, and robust environment,' Murad said. Still, he cautioned that strong business fundamentals remain essential. 'The need for entrepreneurs to have strong, sustainable business models with good unit economics is as necessary as ever,' said the Global Ventures partner. Despite global uncertainties, Saudi entrepreneurs may be better equipped than most to navigate a challenging macroeconomic environment. 'At Global Ventures, we refer to the 'adversity advantage'— a natural upside for regional entrepreneurs who are used to working with, and around, resource scarcity,' Murad said. 'This has empowered them, by design, to build businesses more resilient and adaptable to challenges,' he added.
Yahoo
20 hours ago
- Business
- Yahoo
Where the smart money went: Spring 2025's lessons for European VC sector
Spring 2025 marks a turning point for the European venture capital market: the turbulence of previous years is giving way to a search for new points of stability. On the surface, the overall volume of investments has held steady at around $12–13 billion for Q1, but the logic of deals and investor priorities has clearly shifted. There are fewer rounds, average check sizes have grown, and both startups and founders now face much higher standards. In this article, I outline the key trends of the spring season, analyse where the money is actually going, which segments are attracting the attention of major and niche funds, and what this means for the market, LPs, GPs, and founders. I explain why infrastructure, deep tech, and B2B have come into focus—and which previously hyped sectors are now being left behind. This perspective aims to understand how the market is building new foundations after the 'easy money' era, how the strategies of leading players are evolving, and which scenarios are becoming most likely for the second half of the year. In spring 2025, European venture capital has taken a deliberate step away from chasing the next big platform for everyone. Instead, investors are channelling capital into start-ups that own one specific pain point—and solve it better than anyone else. This change is most visible in the priorities of leading funds. When Cathay Innovation launched its $1B fund this spring, it made clear: that the capital would flow only into vertical AI applications, such as healthcare diagnostics, financial automation, or energy optimisation. The era of 'AI for everything' is over; now, investors want AI for something real. Smartfin, too, repositioned itself strictly as a backer of B2B infrastructure scale-ups, while Cherry Ventures doubled down on single-solution early-stage bets in key European hubs. Investment rounds echo the same shift. Isomorphic Labs raised €556M for AI-driven drug discovery, not a generic platform. Rapyd's €474M round was all about expertise in the toughest corner of payments compliance. Even Reneo's €600M in climate tech was grounded in focused, technical innovation. Why does this matter? Because LPs have grown tired of stories and scale for scale's sake. They want evidence: deep product-market fit, visible technical advantage, and a defensible moat. At Zubr Capital, we see this as a healthy correction. The winners will be those who choose depth over spread—delivering mastery in one vertical, not chasing every market at once. This spring, European venture capital has drawn a clear line: the era of quick-to-market wrappers and surface-level 'innovation' is over. Investors are backing startups that build true technology—from the ground up—with substantial engineering and proprietary IP at their core. The distinction is sharp. Isomorphic Labs, a UK spinout from DeepMind, raised €556m not for a generic AI platform, but for a domain-specific stack in drug discovery: new algorithms, unique data pipelines, and technical depth rooted in biology and chemistry. Investors are no longer satisfied with startups layering a pretty interface on public models—they want hard science and engineering. The same is true beyond AI. Sweden's Neko Health secured $260 million by combining proprietary hardware, sensors, and software for preventive diagnostics—redefining early health screening by building every layer in-house. France's Loft Orbital became a unicorn not by selling vision, but by delivering engineering: modular satellite buses, custom mission software, and reliable payload integration. Their latest funding will scale working infrastructure, not just prototypes. Even in creative AI, substance wins. Synthesia's $180 million round is about advancing proprietary technology for avatar and voice generation—no reliance on off-the-shelf models, but a real R&D engine. And while Quantum Motion (UK) hasn't raised a headline round this spring, its pursuit of silicon-based quantum processors—rooted in physics, not hype—demonstrates the kind of depth investors now prize. The signal is clear: capital is flowing to teams that deliver real, defensible technology. For founders, engineering depth and original IP are now the strongest currency in the European market. Spring 2025 has brought a new level of discipline to European venture capital, as thesis-driven funds moved decisively into the spotlight. Instead of spreading bets across the entire innovation spectrum, more VCs are building portfolios around tightly defined investment themes and industry problems. This trend is reshaping the funding landscape. Funds like Keen Venture Partners have launched dedicated vehicles for European defense and security tech, raising €40 million from EIF specifically for startups tackling national security infrastructure. Recent portfolio moves—EclecticIQ, Avalor AI, Rescale—underline a sharp focus on deep, vertical technologies with immediate strategic value. Other funds are taking a similar approach. 7percent Ventures now concentrates on aerospace, dual-use AI, and moonshot innovation, consistently backing engineering-heavy founders solving mission-critical problems. Their recent investments—satellite comms, cybersecurity AI, aerospace telemetry—reflect this 'vertical expertise first' logic. Lab-to-market models are also gaining ground. Chalmers Ventures has systematized partnerships with scientific teams, turning real innovations into commercial deep tech businesses—not just following buzzwords. Creator Fund backs only PhD-led start-ups in AI, life sciences, and frontier tech, while Deeptech Labs specializes in seed-stage, IP-rich companies moving from prototype to product. The message is clear: targeted capital is a sign of genuine conviction. As generalist portfolios lose ground, thesis-driven strategies are setting new standards for discipline and sector insight. For founders and LPs alike, clarity of purpose and deep industry expertise have become critical differentiators in Europe's maturing VC market. This spring, European venture capital sent a strong signal: location matters less than ever, and operational quality now outweighs geography. The largest rounds and new fund launches consistently favored execution and market traction over traditional 'hotspots.' Take Reneo's €600m cross-border round—one of the biggest in Q1 2025. Its operations span France and Spain, proving that VC now follows product readiness and strategic vision, not the location of a company's headquarters. Similarly, Milan-based Hotiday raised €5,5M from top-tier investors, breaking through Italy's usual funding ceiling thanks to strong product focus and niche traction. The fund landscape reflects the same shift. Soulmates Ventures closed a €50M fund for sustainability startups across Central and Eastern Europe, while 4Founders Capital launched a €44M fund for Spanish and Southern European founders—emphasising local expertise and regional commitment. Defiant's $30M fund connects Western and peripheral European markets, and Voima Ventures' €100M Fund III targets deep tech across the Nordics and Baltics. Even previously secondary regions—Benelux, DACH, Southeast Europe—are seeing increased activity, as new funds target talent and technical strength wherever they emerge. The bottom line: investors now assess startups by execution, product, and real market potential, regardless of location. For founders, this means access to capital is more meritocratic than ever. For the ecosystem, it signals a Europe-wide race for quality—where substance, not geography, wins. Spring 2025 confirmed that infrastructure is now at the heart of Europe's tech agenda—not just for performance, but for resilience, control, and sovereignty. Governments and VCs are aligned: funding no longer just chases growth, but prioritizes the foundational layers powering AI, data, automation, and security. This shift is massive in scale. The EU's InvestAI program launched with €200 billion to build core AI infrastructure—giga-factories, sovereign clouds, and advanced chips. France added €109 billion for AI leadership, and the European Technological Competitiveness Initiative is rolling out over €10 billion into chips, cybersecurity, and cloud through fund-of-funds structures. Private capital is following suit. Investments in sovereign data pipelines, chip design, and next-gen autonomy are on the rise. Established players like Graphcore (UK) embody Europe's silicon ambitions, while stealth-mode AI hardware startups are quietly closing large rounds. Industrial infrastructure is another hotbed: FLOW X (Romania) stands out for integrating deep analytics and automation into industrial processes—moving far beyond dashboards. Funding is now targeting digital twins, industrial IoT, and process automation, making deep tech synonymous with infrastructure. Cybersecurity has become a national priority. Deals now focus on architecture for industrial and state security, with companies like Unseen (UK) pioneering AI-native protection that moves beyond traditional firewalls. Zero-trust systems, sovereign clouds, and industrial cyber platforms are quietly attracting both private and state capital. The message is clear: in 2025, infrastructure is no longer a supporting function—it's the main event. For investors and founders, building and owning the tech backbone of Europe is the highest-value play on the market. Spring 2025 has redefined the European VC landscape: investors now demand focus, technical depth, and real traction. This new discipline is making the market quieter but stronger, with capital gravitating toward deep tech, infrastructure, and clearly defensible niches—regardless of geography. Looking ahead, we expect this logic to hold. The second half of 2025 is likely to bring continued selectivity, with larger rounds flowing to proven teams and sectors solving fundamental problems—AI infrastructure, climate, industrial tech, and security. Government and private capital will keep reinforcing each other, driving further consolidation and accelerating the shift from hype to substance. For founders and investors, the message is clear: building real technology and demonstrating market resilience will remain the keys to unlocking capital and long-term success. At Zubr Capital, we see a maturing market—one poised not just to survive, but to lead the next cycle of European innovation. Oleg Khusaenov is CEO and founder of Zubr Capital Investment Сompany "Where the smart money went: Spring 2025's lessons for European VC sector" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
