Europe should be known for BottleCap AI, not BottleCap memes. This Prague-based AI startup with a tongue-in-cheek name is one of the teams VCs think you should know about.
It’s not that European startups are completely immune to noise. Lovable and Mistral AI are proof of that. But there are plenty of other companies that haven’t yet reached nine digits in annual recurring revenue, and are still tracked very closely by insiders.
That’s where this list comes in. Over the past few weeks, we asked investors from some of Europe’s most prominent venture funds to recommend two startups each. One company from their portfolio (because they liked the startup enough to invest in it) and one outside of their portfolio (because they are startup experts but can’t invest in everything). We’ve also added some of our own picks.
From pre-launch to unicorn, these startups are at different stages of their journey and from different sectors. Because of our methodology, it may not reflect where the hottest hubs in the region are, but it does reflect how deep tech talent can help Europe play its own cards in the AI race.
Alta Ares
Recommended by Julien Codorniu, general partner of 20VC.
What it does: Alta Ares develops AI-powered anti-drone systems.
Why it’s worth watching: Defense technology has gone from pariah to trend, especially in Europe, where the Ukraine war served as a wake-up call for military modernization. Alta Ares’ interceptors address the need for cheaper solutions to detect and counter drone intrusion.
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apron
Recommended by Index Ventures Partner (Investor) Jan Hammer.
What it is: Apron provides invoice management for small business owners.
Why it’s worth paying attention to: Small and medium-sized businesses can be a lucrative segment for fintech companies. There are millions of business owners who are willing to spend at least some money to save time.
Botification
Recommended by Claire Houry (Investor), General Partner at Ventech.
Features: Botify helps brands increase their visibility in AI search.
Why you should care: Companies are still rushing to replace SEO with generative engine optimization (GEO). But this Disrupt NY 2016 graduate is already embracing that change. Botify has competitors in new areas like Otterly.AI and Profound, but it also has large customers from Macy’s to The New York Times.
Bottle cap AI
Recommended by Julian Codorniu, General Partner of 20VC (Investor).
Features: BottleCap AI develops basic LLMs and apps with a focus on efficiency.
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 took a two-pronged approach. The startup builds its own model and releases apps built on top of it, including Pulse, an AI-powered news app.
Kailabs
Recommended by Flavia Levi, Investment Manager at Join Capital.
What we do: 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 applying it to faster and more robust data transmission. With support from public and private investors, 50 optical ground stations will be deployed to support the growing demand for laser communications with satellites.
Carla
Recommended by Anna Heim of TechCrunch.
Feature: Knowledge graph for AI agents.
Why it’s worth watching: Cala plans to build a layer of knowledge that AI agents lack. Its founder is Elisenda Bou Ballast, a prominent Spanish entrepreneur and AI expert who sold her previous company Vilynx to Apple in 2020.
flower
Recommended by Northzone Partner Pär-Jörgen Pärson (Investor).
Content: Renewable energy management.
Why it’s worth paying attention to: Wind energy and solar energy are inherently variable. Flower leverages AI and battery energy storage systems to make its usage more predictable. The Swedish company recently raised more than $60 million in debt to continue scaling.
basic
Recommended by Jonathan Userovici, General Partner at Headline (Investor).
Features: Foundational AI for big data analysis.
Why it’s worth paying attention to: Fundamental’s foundational model, Nexus, is focused on helping businesses derive insights from their data. The company only emerged from stealth in February, but is already valued at $1.4 billion after a $255 million Series A.
gladium
Recommended by Jonathan Uselovich, Headline General Partner.
Features: AI voice model.
Why it’s worth watching: Gradium’s AI models can be used for real-time text-to-speech, providing speech to AI agents in multiple languages. The Eleven Lab challenger, spun out of French AI lab Kyutai, has raised $70 million in its own seed round.
happy robot
Recommended by Pablo Ventura, General Partner of Kfund.
Features: 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 the company is focused on ensuring they can be deployed and deliver ROI. The company is headquartered in the United States, but its three co-founders and part of the team are Spanish.
involt
Recommended by Claire Houry, general partner at Ventech.
What: Physics AI for factories.
Why it’s worth watching: Combining AI and robotics, Inbolt is improving and expanding automation in manufacturing, from the automotive industry and electronics to household goods production lines. The startup says it already operates in more than 70 factories.
legola
Recommended by Northzone partner Pär-Jörgen Pärson.
What it is: An AI platform for lawyers.
Why it’s worth watching: As competition from mainstream LLMs increases, legal tech will also become more involved in marketing. Grab some Harvey vs. Legola popcorn after Legola outperforms its rivals by appointing Jude Law as the face of the brand. That’s one takeaway for the Swedish-born startup, which is currently headquartered in New York but remains one of Stockholm’s rising AI stars.
macro data lab
Recommended by Floriane de Maupeou, President of Serena Data Ventures.
Contents: AI training data infrastructure.
Why it’s worth paying attention to: “Every powerful model starts with good data,” Macrodata Labs claims on its “Coming Soon” landing page. But startups don’t build that data. Its upcoming platform will provide other companies with the tools to create robust training datasets.
multiverse computing
Recommended by Julie Bort of TechCrunch.
What: Provides compressed versions of openweight models such as OpenAI, Meta, DeepSeek, and Mistral AI.
Why it’s worth watching: Multiverse Computing’s technology takes a proven model and makes it smaller and cheaper to run, especially on a company’s own hardware. A Spanish startup co-founded by Donostia International Physics Center professor and CTO Román Ors has raised $250 million.
optics 11
Recommended by Flavia Levi, Investment Manager at Join Capital (Investor).
Function: Fiber optic sensing system.
Why it’s worth your attention: Optics11’s technology enables monitoring of equipment underwater and in similarly harsh conditions. The startup was able to secure venture financing from the European Investment Bank because of its potential to prevent disruption to undersea infrastructure and energy grids.
penny lane
Recommended by Jan Hammer, Partner at Index Ventures.
What it is: A financial management platform for small and medium-sized businesses.
Why it’s worth watching: Pennylane started in accounting, but it has bigger plans. Like many other growth-stage fintech companies, the French unicorn is expanding its reach with the ambition to create a unified financial operating system for Europe’s small and medium-sized enterprises.
PLD space
Recommended by Anna Heim of TechCrunch.
Contents: Launch a rocket.
Why it’s worth watching: PLD Space is part of Europe’s push for space autonomy. After successfully launching a suborbital rocket in 2023, the company 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, taking its funding to more than $350 million.
proxima fusion
Recommended by Daria Sakharova, Global Fund General Partner.
Contents: Nuclear fusion.
Why it’s worth watching: The race to replace nuclear fission continues, and Proxima fusion is one of Europe’s top contenders. The venture capital-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, Principal, Serena Data Ventures (Investor).
Features: 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 on different types of chips.
space forge
Recommended by Daria Sakharova, Global Fund General Partner (Investor).
What it does: Space Forge manufactures semiconductor components in space.
Why it’s worth watching: In-space manufacturing is on the rise, including for pharmaceutical applications and chips, which are the focus of space forges. The startup is already moving ahead, with additional geopolitical tailwinds. Recently, plasma was generated in low Earth orbit.
taker
Recommended by Pablo Ventura, General Partner of Kfund (Investor).
What: 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 retail giants improve logistics, but the startup is also pursuing use cases in waste management and food and beverage production.
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