21 European startups to watch beyond Lovable and Mistral
▼ Summary
– A list of 23 European AI startups, recommended by venture capitalists, highlights emerging companies across defense, fintech, space, and other sectors.
– Startups range from pre-launch to unicorn status, including Alta Ares (counter-drone systems), Apron (invoice management), and BottleCap AI (efficiency-focused LLMs).
– Several startups focus on specialized AI applications, such as Botify for generative engine optimization, Cala for AI agent knowledge graphs, and Fundamental for enterprise data analysis.
– Space and defense tech are prominent, with PLD Space developing reusable rockets, Cailabs building optical ground stations, and Space Forge manufacturing semiconductors in orbit.
– The article notes that deep tech talent could help Europe compete in the AI race, despite the region not always producing high-profile successes like Lovable or Mistral AI.
Europe should be known for BottleCap AI, not bottle cap memes. With its playful name, this Prague-based AI startup is one of the teams that VCs believe deserves more attention.
It’s not that European startups never break through,Lovable and Mistral AI prove they can. But many others haven’t yet reached nine figures in annual recurring revenue, and insiders are still watching them closely.
That’s where this list fits in. Over the past few weeks, we asked investors from some of Europe’s most prominent venture funds to recommend two startups each: one from their portfolio (because they liked it enough to invest) and one outside it (because they’re experts but can’t back every promising company). We also added a few of our own selections.
From pre-launch to unicorn status, these startups span different stages and sectors. While our methodology means they may not reflect the region’s hottest hubs, they do show how deep tech talent could help Europe compete in the AI race.
Alta Ares
Recommended by Julien Codorniou, general partner, 20VC.
What it does: Develops AI-powered counter-drone systems.
Why it’s worth watching: Defense tech has shifted from pariah to trending, especially in Europe, where the war in Ukraine pushed armies to modernize. Alta Ares’ interceptors meet the demand for cheaper ways to detect and counter drone incursions.
Apron
Recommended by Jan Hammer, partner, Index Ventures (investor).
What it does: Provides invoice management for small business owners.
Why it’s worth watching: SMBs are a lucrative fintech segment. Business owners will spend to save time, and there are millions of them.
Botify
Recommended by Claire Houry, general partner, Ventech (investor).
What it does: Helps brands boost visibility in AI searches.
Why it’s worth watching: Companies are still figuring out how to replace SEO with generative engine optimization (GEO). Botify, a Disrupt NY 2016 alum, has already embraced this shift. It faces competitors like Otterly. AI and Profound but counts major clients such as Macy’s and The New York Times.
BottleCap AI
Recommended by Julien Codorniou, general partner, 20VC (investor).
What it does: Builds 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 takes a dual approach. It develops its own models and releases apps built on them, including Pulse, an AI-powered news app.
Cailabs
Recommended by Flavia Levi, investment manager, Join Capital.
What it does: Develops photonics for aerospace, defense, and industrial use.
Why it’s worth watching: Based on advanced light science, Cailabs applies it to faster, more robust data transmission. Backed by public and private investors, it plans to deploy 50 optical ground stations to meet growing demand for satellite laser communications.
Cala
Recommended by TechCrunch’s Anna Heim.
What it does: A knowledge graph for AI agents.
Why it’s worth watching: Cala aims to build the knowledge layer AI agents are missing. Its founder, Elisenda Bou-Balust, is a high-profile Spanish entrepreneur and AI expert who sold 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 power are variable. Flower uses AI and battery energy storage to make them more predictable. The Swedish company recently raised over $60 million in bonds to continue 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 model, Nexus, helps enterprises extract insights from their data. It came out of stealth in February and is already valued at $1.4 billion after 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 models enable real-time text-to-speech for AI agents in multiple languages. A spinout of French AI lab Kyutai, this ElevenLabs challenger raised a $70 million seed round.
HappyRobot
Recommended by Pablo Ventura, general partner, Kfund.
What it does: AI agents for complex use cases.
Why it’s worth watching: Backed by a16z and Y Combinator, HappyRobot focuses on making AI agents deployable and ROI-positive. It’s U. S.-headquartered, 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: Combining AI and robotics, Inbolt improves automation in manufacturing, from automotive to electronics and home goods. The startup says it’s 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 mainstream LLMs increasing competition, legal tech will hinge on marketing. Watch the Harvey v. Legora rivalry after Legora hired Jude Law as its brand face. That’s a win for the Swedish-born startup, now headquartered in New York but still a rising AI star from Stockholm.
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 page. It won’t build that data; instead, its platform will provide tooling for other companies 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 makes proven models smaller and cheaper to run, especially on company 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 monitors equipment underwater and in harsh conditions. Its potential to prevent disruptions to subsea infrastructure and energy grids helped it 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 with accounting but has bigger ambitions. Like many growth-stage fintechs, this French unicorn has expanded its scope, aiming to build a unified financial operating system for European SMBs.
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 launching a suborbital rocket in 2023, it’s developing a reusable orbital launcher for small satellites. Last month, it secured a $209 million Series C led by Mitsubishi Electric, bringing total funding to over $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 a strong European contender. The VC-backed company recently secured $460 million from the state of Bavaria to build a fusion power plant, 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 AI and fragmented hardware with software that lets users deploy models efficiently on different chip types.
Space Forge
Recommended by Daria Saharova, general partner, World Fund (investor).
What it does: Manufactures semiconductor components in space.
Why it’s worth watching: In-space manufacturing is growing for pharmaceuticals and chips, which is Space Forge’s focus. With geopolitical tailwinds, the startup is already making progress: 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. Its AI-enabled robots could improve retail logistics, but it’s also pursuing use cases in waste management and food and beverage production.
(Source: TechCrunch)
