Europe should be known for BottleCap AI, not bottle cap memes. With its tongue-in-cheek name, this Prague-based AI startup is one of the teams VCs think you should know about.
It’s not that European startups never stand out – Kind And Mistral AI are proof of this. But there are many others who don’t have one. nine figures of annual recurring revenue still and that the initiated still follow very closely.
That’s where this list comes in. Over the past few weeks, we’ve asked investors at some of Europe’s best-known venture capital funds to each recommend two startups: one from their portfolio (because they liked the startup enough to invest) and one outside of it (because they are startup experts but can’t invest in all of them). We’ve also added a few picks of our own.
From pre-launch to unicornthese startups are at different stages of their journey, and from different sectors. Due to our methodology, they may not reflect where the hottest poles in the region are, but they do reflect how deep tech talent could help Europe play its own cards in the AI race.
Top Ares
Recommended by Julien Codorniou, general partner, 20VC.
What it does: Top Ares develops AI-powered anti-drone systems.
Why it’s worth watching: Defense technology has gone from pariah status to trendsetting, particularly in Europe, where the war in Ukraine was a wake-up call for militaries to modernize. Alta Ares’ interceptors meet a need for lower-cost solutions to detect and combat drone incursions.
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Apron
Recommended by Jan Hammer, Partner, Index Ventures (investor).
What it does: Apron provides invoice management for small business owners.
Why it’s worth watching: SMEs can be a lucrative segment for fintech companies; business owners are willing to spend at least a little money to save time, and there are millions of them.
Botify
Recommended by Claire Houry, general partner, Ventech (investor).
What it does: Botify helps brands increase their visibility in AI searches.
Why it’s worth watching: Businesses are still working to replace SEO with Generative Engine Optimization (GEO) – but this Disrupt, formerly of NY 2016 has already accepted the change. Botify has competitors in its new field, such as Otterly.AI And Deepbut also major clients, from Macy’s to the New York Times.
BottleCap AI
Recommended by Julien Codorniou, general partner, 20VC (investor).
What it does: BottleCap AI develops fundamental LLMs and applications focused on efficiency.
Why it’s worth watching: With a founding trio that includes an entrepreneur who sold his former company to Meta and two AI researchers, BottleCap adopted a dual approach. The startup creates its own models and releases applications based on them, including Pulsean AI-powered news app.
Caïlabs
Recommended by Flavia Levi, Investment Manager, Join Capital.
What it does: Caïlabs develops photonics for aerospace, defense and industrial applications.
Why it’s worth watching: Cailabs draws on advanced research in the science of light, which it now applies to faster, more robust data transmission. Supported by public and private investorsit plans to deploy 50 optical ground stations to meet the growing demand for laser communications with satellites.
Cala
Recommended by Anna Heim of TechCrunch.
What it does: Knowledge graph for AI agents.
Why it’s worth watching: Cala plans to create the layer of knowledge that AI agents lack. Its founder is Elisenda Bou-Balust, a leading Spanish entrepreneur and AI expert who sold his old business 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 energy are inherently variable. Flower leverages AI and battery energy storage systems to make their use more predictable. This Swedish company also recently raised more than $60 million in bonds to continue to evolve.
Fundamental
Recommended by Jonathan Userovici, General Partner, Headline (investor).
What it does: Basic AI for big data analysis.
Why it’s worth watching: FundamentalThe basic model of,Nexus,focuses on helping businesses learn from their data. The company just came out of hiding in February, but it’s already valued at $1.4 billion following a $255 million Series A round.
Graduation
Recommended by Jonathan Userovici, General Partner, Headline.
What it does: AI voice models.
Why it’s worth watching: GraduationAI models can be used for real-time speech synthesis that gives AI agents a voice in multiple languages. From the French AI laboratory Kyutai, this challenger from ElevenLabs raised a $70 million funding round of its own.
HappyRobot
Recommended by Pablo Ventura, General Partner, Kfund.
What it does: AI agents for complex use cases.
Why it’s worth watching: HappyRobota startup supported by a16z and Y Combinator, is one of many AI creation agents, but its goal is to ensure they can be deployed and generate a return on investment. Its headquarters are in the United States, but its three co-founders and part of its team are Spanish.
Bolted
Recommended by Claire Houry, general partner, Ventech.
What it does: Physical AI for factories.
Why it’s worth watching: Mixing AI and robotics, Bolted improves and expands automation in manufacturing, from the automotive and electronics industry to household goods production lines. The startup claims to be 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 increased competition from traditional LLMs, legal technology will also be about marketing. Take the popcorn for Harvey vs. Legora After Legora outstripped his rival by enlisting Jude Law be the face of your brand. This is a point for the startup of Swedish origin, which is now headquartered in New York but it’s still one of the Rising AI stars in Stockholm.
Macrodata Labs
Recommended by Floriane de Maupeou, Director, Serena Data Ventures.
What it does: AI training data infrastructure.
Why it’s worth watching: “Every solid model starts with quality data” Macrodata Labs claims on its “coming soon” landing page. But the startup will not create this data; its upcoming platform will provide other companies with tools to create robust training datasets.
Multiverse computing
Recommended by Julie Bort of TechCrunch.
What it does: Offers compressed versions of open weight models like OpenAI, Meta, DeepSeek and Mistral AI.
Why it’s worth watching: Multiverse computing‘s technology takes a proven model and makes it smaller and less expensive to operate, especially on the company’s own hardware. Co-founded by CTO Román Orús, professor at Donostia International Physics Center, the Spanish startup has raised $250 million.
Optical11
Recommended by Flavia Levi, Investment Manager, Join Capital (investor).
What it does: Fiber optic sensing systems.
Why it’s worth watching: Optical11The technology allows equipment to be monitored underwater and in equally harsh conditions. Its potential to prevent disruptions to underwater infrastructure and energy networks helped the startup secure venture debt from the European Investment Bank.
Pennylane
Recommended by Jan Hammer, Partner, Index Ventures.
What it does: Financial management platform for SMEs.
Why it’s worth watching: Pennylane began with accountingbut he has bigger plans. Like many other fintechs in the growth phase, this one French unicorn has expanded its reach, with the ambition of building a unified financial operating system for SMEs in Europe.
PLD space
Recommended by Anna Heim of TechCrunch.
What it does: Launch rockets.
Why it’s worth watching: PLD space is part of Europe’s efforts for space autonomy. After successfully launch a suborbital rocket in 2023it is currently developing a reusable orbital launcher for small satellites. Last month, the Spanish company obtained a $209 million Series C round led by Mitsubishi Electric which increased its funding to more than $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 one of the the strongest contenders. The cape-funded company ital-risk recently obtained 460 million dollars from the State of Bavaria to support its plans to build a fusion power plant in Europe, starting with a demonstration stellarator near Munich.
Roofline
Recommended by Floriane de Maupeou, director, Serena Data Ventures (investor).
What it does: Software for deploying AI models on advanced chips.
Why it’s worth watching: Return to university Roofline bridges the gap between AI and an increasingly fragmented hardware layer with software that allows users to efficiently deploy models across different chip types.
Space Forge
Recommended by Daria Saharova, General Partner, World Fund (investor).
What it does: Space Forge manufactures semiconductor components in space.
Why it’s worth watching: Manufacturing in space is increasing — for pharmaceutical applications, one and for chips, which are The objective of Space Forge. With the favorable winds of geopolitics, the startup is already moving forward: it recently generated plasma in low Earth orbit.
Théker
Recommended by Pablo Ventura, General Partner, Kfund (investor).
What it does: Robots as a service.
Why it’s worth watching: Théker is one of several startups backed by Zara owner Inditex through a dedicated fund managed by Mundi Ventures. Theker’s AI-based robots could help the retail giant improve its logistics, but the startup is also pursuing use cases in waste management and food and beverage production.
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