• early stage for defence startups, vertical drones, Gen Z payments, Ai biotech
• Helsing's revenue
• active dealers last months

 

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Serious about defence

🇸🇪 ​Snigel​, manufacturing & selling high-end personal load carrying equipment & protection systems, for police & military, raised a growth round led by eEquity, joined by local angel investors.

• sold equipment worth $50 million to European defence contractors in 2024.

🇩🇪 ​Alpine Eagle​, developer of counter-unmanned aerial systems solutions for autonomous drone threats, raised $10.7 million in seed funding led by IQ Capital, joined by General Catalyst, HCVC, 2C Ventures, Expeditions Fund, High-Tech Gründerfonds. 

• USP: a cost-effective mix of software and hardware, mass-producible systems used to establish a symmetry against the numerical advantage of cheap strike drones 
• traction: seven digits revenue from the German army (its launch customer), in addition to other government agencies, including testing in Ukraine.
• pre-seeded in 2023 by La Famiglia VC and HCVC.

We have a market Defence has been an ongoing discussion in the European investment circles for a few years already, ever since Helsing raised a 100 million seed with Daniel Ek's Prima Materia, before Russia started the war. And if back then, an industry trajectory that should substantiate VC returns was not really evident, today things are very different, as the EU just agreed the other day to put some €800 billion on a defence budget for the continent. That's up from a 2024 spend of €326 billion (1.9% of EU GDP) - compare that to a mere €5 billion in VC money deployed against defence startups in Europe last year, that's up 24% yoy. The opportunity is real. 

GTM is where it's at With all this extraordinary demand, the GTM of having to deal with bureaucratic institutions and complicated procedures became all of a sudden more simple. I know of many startups up and down the value chain that simply started validating their PMF by working directly with Ukraine, which is lightyears ahead in terms of tech adoption and innovative market approaches for obvious reasons. And this is exactly what the above two startups have done as well, as Ukraine is an important market for them.

Helsing's back on the envelope The Germans are definitely the European market leaders in terms of VC defence spending, and so it is fitting to take a stab at figuring out its fundamentals. Helsing sells AI for defense applications, particularly for Eurofighter upgrades and the FCAS (Future Combat Air Systems), competing locally with the likes of BAE, Leonardo or Airbus. Defense AI/software companies typically generate revenue through long-term contracts with governments and defense firms, often in the hundreds of millions range, and other startups in this space, like Palantir in its early days, had revenue-to-valuation ratios of about 0.3 to 0.5. Helsing was valued at ​5b-ish​ in 2024, when they raised the C round. So I am guessing they produce revenue somewhere north of 300 million (conservative), likely close to 500 million a year, on a growing trend riding the above market fundamentals.

 

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Deals

Nordics

🇫🇮 ​SparkReceipt​, doing OCR tech using AI for simplifying the management of financial documents, raised a seed round led by Trind Ventures.

🇫🇮 ​Skyfora​, selling weather analytics intelligence, raised $4.2 million in a seed funding deal led by Ugly Duckling Ventures and Lumo Labs, joined by Voima Ventures and EIC Fund. 

🇳🇴 ​Nomadic Drone​, developing a fleet of drones used for continuous automated inspection of electric transmission and distribution infrastructure, raised $1.6 million in pre-seed funding led by Outlander VC and Asia2G Capital.

🇩🇰 ​PhaseTree​, developing a collaborative online materials simulation platform for accelerated materials discovery, raised a $3 million seed from Heartcore Capital.

🇪🇪 ​Cino​, developing a payment sharing app for gen Z, raised $3.6 million in a seed funding round led by Balderton Capital, joined by Connect Ventures and Tera Ventures.

• pre-seeded with 1.5 million at the end of 2023, with encouraging traction in Finland and Italy.

🇳🇴 ​Telescope​, developing a SAAS tool used for managing sustainability risks for real estate assets, raised $3.8 million seed funding co-led by Scale Capital and Dreamcraft Ventures, joined by Curiosity VC and OBOS.

🇱🇹 ​myTU​, building a digital banking platform that offers payment and marketplace solutions for individual and business clients, closed a $10.4 million Series A with undisclosed backers.

• deal values the company at €35 million.

🇪🇪 ​Stargate Hydrogen​, developing turn-key electrolysis solutions for the production of green hydrogen, raised $11 million in Series A funding from Giga, UG Investments, and SmartCap Green Fund.

🇸🇪 ​Aira​, producer of heat pumps, raised $21 million in a series B extension with existing local investors.

• that's the third extension since October 2023 - the series B now totals almost $200 million.

🇫🇮 ​Steady Energy​, developer of zero-emission heating plants, raised a $22.9 million series B led by 92 Ventures, joined by Lifeline Ventures.

• series A resumed at 10 million just nine months ago, co-led by Yes VC and Lifeline.

 

UK

🇬🇧 ​Ocean Ledger​, developing a SAAS tool used for precision satellite analytics to analyze, manage and monitor physical and natural coastal assets, raised $900K pre-seed with investors led by Ananda Impact Ventures and Silverstrand Capital.

🇬🇧 ​Epoch BioDesign​, producing enzymes that transform plastics into circular chemicals, raised $18.3 million in Series Afunding led by Extantia Capital, joined by Inditex, Lowercarbon, Happiness Capital, Kibo Invest, Day One Ventures. 

🇬🇧 ​Cloudsmith​, developer of supply chain management SAAS, raised $23 million in Series B funding led by TCV, with participation from Insight Partners.

🇬🇧 ​Swap Commerce​, developing a global e-commerce platform that focuses on facilitating returns and exchanges for online retailers, raised $40 million series B led by Iconiq Growth, joined by Cherry Ventures, QED, and 9900.

• series A was resumed less than a year ago at $8 million, led by QED Investors
• USP: single place to manage logistics and shipping operations, including inventory, returns, and product recycling.
• traction: 500 customers, mostly in the fashion business.
• money will be used to scale in adjacent markets.
• Iconiq's second deal in Europe this year - they also led ​Eleven Labs​'s $180 million series C announced earlier this winter.

🇬🇧 ​Quantexa​, building a business on top of a Decision Intelligence platform, raised $175 million Series F investment round, led by Teachers’ Venture Growth, joined by British Patient Capital.

• deal values the company at $2.6B

 

France

🇫🇷 ​Kleio​, developing a conversational AI product for enterprises, raised $3 million in a seed funding co-led by Serenaand Daphni, joined by angel investors.

🇫🇷 ​Faks​, building a marketplace used for exchanges between pharmacists and laboratories, raised a $6.3 million seed extension led by Speedinvest, joined by investors including Connect Ventures, Seedcamp and FJ Labs. 

• initial 5 million seed was led by Connect Ventures two years ago.

🇫🇷 ​Wealthcome​, selling SAAS for professional financial asset managers (Conseillers en Gestion de Patrimoine), raised $7 million seed in a round covered by BlackFin Capital Partners.

• pre-seeded by local angels with $1 million two years ago
• traction: 300 customers managing €20 billion of aggregated assets.

🇫🇷 ​Moonwatt​, developing next gen energy storage systems utilizing advanced sodium-ion battery technology, closed an $8.3 million seed round co-led by Daphni and LEA Partners, joined by Founders Future, AFI Ventures and Kima Ventures.

🇫🇷 ​Renaissance Fusion​, developing a high-temperature superconductor and stellarator for nuclear reactors, raised $33 million in Series A-1 funding led by Crédit Mutuel Impact, joined by Lowercarbon Capital. 

🇫🇷 ​Flowdesk​, operating a trade platform for web3 companies, announced a series B extension led by HV Capital, joined by Eurazeo, Cathay Innovation and ISAI.

• the deal is part of a larger $52 million financing transaction including a debt facility provided by Blackrock. 
• initial series B was resumed at $50 million led by Cathay Innovation at the end of 2023.

 

Other geo

🇳🇱 ​Beyond Weather​, developing AI technology used for forecasting in the energy and agricultural sectors, raised $200kwith Rockstart.

🇦🇹 ​Howie​, developing an AI tool designed to assist architects and engineers with better workflows, raised $600k pre-seed with Pi Labs, AWS and Vienna Business Agency.

🇩🇪 ​Limatica​, developing an analytics tool providing battery cells evaluations, raised $1.4 million pre-seed with kopa ventures, Bloomhaus Ventures and Heartfelt.

🇩🇪 ​Radical Dot​, developing a chemical technology that transforms unrecyclable plastic waste into essential chemical building blocks, raised $2.8 million in a pre-seed funding co-led by UVC Partners and Visionaries Tomorrow.

🇧🇪 ​Conveo​, developing in-depth market research SAAS used for facilitating AI-moderated consumer video interviews with AI setup & analysis, raised a $5.3 million seed round with Y Combinator, 6 Degrees Capital, Entourage, Pitchdrive, and Syndicate One.

🇮🇪 ​UrbanFox​, developing an AI-enabled SAAS used for fraud detection in the financial industry, closed an $8 million Series A round led by IAG Capital Partners. 

🇧🇬 ​EnduroSat​, producer of new gen satellites, raised a $20 million series A extension with Ceecat Capital and Morphosis Capital.

• initial series A was resumed at 10 million in 2023.

🇳🇱 ​QuantWare​, producing superconducting quantum hardware, raised $21 million series A co-led by Invest-NL and Innovation Quarter.

🇨🇿 ​Mews​, which does SAAS for hotel management, raised $75 million series E led by Tiger Global.

 

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Investors

Active last month

We have tracked the activity of about 850 investors​​​ involved in more than 300 VC deals worth $2.8 billion for the month of February. The spending trend keeps going down compared to last year's February, when we have tracked 1200 investors having done almost 500 deals worth $4.8 billion. 

Some of the more active investors below.

VCs 🇬🇧 ​20VC​ 🇬🇧 ​Connect Ventures​ 🇬🇧 ​Fuel Ventures​

🇫🇷 ​Daphni​ 🇫🇷 ​Kima Ventures​ 🇫🇷 ​Founders Future​

🇩🇪 ​468 Capital​ 🇩🇪 ​Bayern Kapital​ 🇩🇪 ​HV Capital​ 🇩🇪 ​Visionaries Club​ 🇦🇹 ​Speedinvest​

🇸🇪 ​Industrifonden​ 🇩🇰 ​ByFounders​

🇮🇹 ​CDP Venture​ 🇪🇸 ​Acurio Ventures​ 🇵🇹 ​Shilling Capital​ 🇳🇱 ​Lumo Labs​

 

Angels

🇬🇧 ​Tom Horsey​ 🇬🇧 ​Charlie Songhurst​ 🇮🇹 ​Laura Modiano​ 🇮🇹 ​Paolo Ardoino​ 🇧🇪 ​Matthias Geeroms​ 🇫🇷 ​Thomas Wolf​🇸🇪 ​Erik Bernhardsson​ 🇩🇰 ​Henrik Haugbølle​

Americans

🇺🇸 ​FJ Labs​ 🇺🇸 ​Battery Ventures​ 🇺🇸 ​Tiger Global​ 🇺🇸 ​Goldman Sachs​ 🇺🇸 ​Point72 Ventures​ 🇺🇸 ​QED Investors​

🇺🇸 ​Adam D’Angelo​ 🇺🇸 ​Huey Lin​ 🇺🇸 ​Scott Belsky​

 

On the move

🇩🇰 ​Steffen Frølund​ became managing partner at Likeminded Ventures, after working with it for four years - he is also a member in the Danish parliament.

🇫🇷 ​Paul Moriou​ was made partner by Serena, after joining the company five years ago.

🇬🇧 ​Sarah Finegan​ was promoted to an associate partner position at Antler after having spent almost four years in the London office.

🇩🇪 ​Bodi Tent​ was hired by Heartcore in its Berlin office, after he had spent les than a year with HV Capital.

🇫🇷 Elaia ​announced​ the promotion of a bunch of its analysts from the Paris office.

🇸🇪 ​Ellie Fokas-Schuettinger​ was hired by the Norway-based Pinecone Ventures to build local business out of a newly opened Stockholm office.

 

Powder 

🇸🇪 Adelis Equity held a final close for a ​€1.6 billion​ PE fund with a focus on growth-oriented investments in the Nordic and DACH regions.

🇫🇷 Sofinnova Partners announced commitments of ​€1.2 billion​ for a new fund capital.

 

Europeans abroad

🇩🇪 Picus Capital and 🇩🇰 2degrees contributed to a ​$1.9 million​ seed deal resumed by SmartSolar, a Vietnam-based startup done by an ex-McKinsey Swiss founder and providing financing infrastructure to get SMBs equipped with solar energy.

🇩🇪 Target Global co-led a ​$7 million​ seed round raised by Alta an Israeli-based startup doing a framework for plug and play AI Agents.

🇵🇹 Bright Pixel (led) and 🇬🇧 Seedcamp chipped in to a ​$11 million​ seed deal closed by Knostic, an Israeli/American startup developer of access controls for generative AI.

🇬🇧 LocalGlobe:

• was part of a ​$16.6 million​ series A transaction closed by Heidi Health, Aussies doing AI-powered software for primary care. 
• contributed to a ​$33 million​ Series A raised by Grain, an Israeli AI-powered FX payments and hedging infrastructure

🇬🇧 Hummingbird Ventures led a ​$18 million​ Series A funding round, at $100M post, raised by Instant, an Australian startup developing automated marketing SAAS helping brands re-engage online shoppers who abandon their carts.

🇬🇧 Giant Ventures contributed alongside Peter Thiel, Founders Fund and AIX Ventures to a ​$20.4 million​ Series Araised by Ataraxis AI, an American startup done by a Polish scientist and using AI to accurately predict not only if a patient has cancer, but also what their cancer outcome looks like in 5 to 10 years. 

🇪🇺 A bunch of European investors, including Jeito Capital, Novo and Pureos Ventures, contributed to a ​$187 million​Series A raised by an American biotech working on multi-payload antibody-drug conjugates to improve cancer therapy.

 

Also notable

🇩🇰 Accenture ​acquired​ Halfspace, a Danish AI startup founded in 2015 and doing some $6 million in sales. 

 

Elsewhere

• ​Deep Nishar​ and ​Kyle Doherty​, who co-led General Catalyst’s late-stage deals, and ​Adam Valkin​, one of the three leads of the firm’s early-stage fund, ​departed​ General Catalyst.

 

• ​Bilal Zuberi​, ex-Lux Capital, is working on launching a new early-stage fund targeting $150 million.
• 8VC, led by Joe Lonsdale, raised ​$998 million​ for a sixth VC fund.
• Blue Owl Capital secured ​$1 billion​ for a fund-of-funds, after pitching an unorthodox incentive to anchor investors - invests in continuation funds, which buy assets from existing vehicles to cash out early investors and extend the holding period.

 

• Benchmark led a ​$18 million​ series A raised by Numeral, an American startup doing a sales tax AI tool for Ecommerce & SAAS.
• Sequoia Capital: 
  • led a ​$30 million​ Series A raised by Freed, Americans building an AI transcribing assistant for clinicians. 
  • co-led with CRV a $25 million seed funding and contributed to an ulterior $105 million Series A led by Lightspeed Venture Partners, raised by ​Reflection AI​, a stealth American startup developing superintelligent autonomous systems - $555 million post-money valuation.
  • led a ​$190 million​ series C round at a $2.5 billion post-money valuation raised by Peregrine, American developers of data SAAS for state and local law enforcement agencies.
• Thrive Capital is reportedly in talks to lead an investment deal in Anysphere, at a ​$10 billion​ valuation - Anysphere developed Cursor, a popular AI code editor that's doing about $100 million ARR.

 

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