E589 | EUVC Summit 2025 | Juliet Bailin, General Catalyst: European Resilience Through Applied AI

At EUVC Summit 2025, Fred Destin, founder of Stride, didn’t give us a movie, or a polished pitch. He gave us something rarer—an unfiltered meditation on truth, technology, and the role of venture capital in shaping the next 50–100 years.Not Just Capital. Not Just Companies.Fred framed venture not simply as a financial craft, but as something profoundly human:“Since I was a kid, I always thought of progress as being intimately related to human flourishing. In our age, the way in which we create—outside of art—is by helping founders build companies. We are in the cockpit with them, creating the future.”But that future is clouded. Social media, born of “likes” and “shares,” bent the arc of progress into something darker: an attention war.And now, with AI at full speed, the stakes have never been higher.Truth Under SiegeDestin warned: truth is costly, outrage is cheap. Investigative journalism may take months, but outrage takes seconds. Algorithms optimized for speed have already shifted the field—and AI could supercharge it.He asked the room to imagine:A future where your AI knows who you dined with, where you’ve been, and what you’ll buy next.A landscape where ambiguity is exploited, narratives collapse, and “heroes” are manufactured.A world where our meditation spaces, even our inner lives, are monetized and optimized.“Narratives are how we hold together—companies, funds, societies. When they collapse, what’s left to unite us?”Stewardship in an Age of AnxietyFred’s answer wasn’t fear, but stewardship.Stewardship of self: noticing when we’re trapped in attachment, aversion, or ignorance (as Buddhism teaches).Stewardship of conversation: asking what quality of dialogue we are having—with ourselves, with founders, with society.Stewardship of capital: ensuring the companies we back create a future we can stand behind.“Maybe don’t tell your LPs you’re doing this. But be intentional. Back companies that are shaping the future you’d be proud to live in.”The Call to VCsFred’s message landed as both caution and inspiration:AI can bring abundance—solving crises of climate, soil, nutrition, and health.But it can also bring domination—by nation states, corporations, or worse.Or, if unchecked, extinction.The choice isn’t abstract. It’s in the hands of those who sit “inside the vortex”—founders, investors, and stewards of capital.Leadership That Speaks TruthFred Destin reminded EUVC Summit 2025 that venture capital isn’t just about returns. It’s about narrative, stewardship, and shaping futures in an age of anxiety.“What are we telling the world? Not what is self-serving. But what is true. What is a contribution.”Congratulations to Fred Destin, Stride, for a Summit Talk that challenged us not just to invest in companies—but to invest in the truth.

In a high-energy session that sparked nods across the room, Lucille and Marc tackled the shifting paradigms in the SaaS market—and made a compelling case for why vertical SaaS is quickly outpacing horizontal models.Marc opened with a candid assessment of the current SaaS landscape. “What’s the flaw in the current market?” he asked. In his view, horizontal SaaS faces serious headwinds:AI is leveling the playing field: Tools like AI-assisted coding have lowered the barrier to entry. Startups can now build and scale to $10–20M in revenue without a CTO, making it easier than ever to launch—but harder to stand out.Enterprise sales are brutal: Horizontal SaaS faces challenges in defining clear ICPs (Ideal Customer Profiles), making it harder to gain traction quickly. This often results in sluggish proof points and delayed product-market fit.Vertical SaaS—companies that serve a single, well-defined industry—has several structural advantages that Lucille and Marc believe make it the smarter play:Clear Go-To-Market MotionWith deep domain knowledge, vertical SaaS teams know exactly how to sell and to whom. Their understanding of customer pain points gives them a clear runway for product adoption.Economic Moats from the StartBy solving a niche problem deeply (rather than broadly), vertical SaaS players build sticky products with defensible positioning. This leads to easier upselling and faster PMF (product-market fit).Composable GrowthOnce established in one vertical, these companies can expand into adjacent markets or layers—embedding financial products like payments, insurance, or lending. That transforms them into mini-operating systems for their customers.AI as an Embedded EdgeAI isn’t just a buzzword here—it’s embedded into the business model. These companies use AI to build smarter workflows, increase automation, and create differentiated products right out of the gate.M&A and Platform PotentialVertical SaaS allows for cleaner M&A and roll-up strategies, given the homogeneity of the user base. This is significantly harder with broad horizontal plays. Layering in APIs and platforms makes them extensible and scalable.Lucille emphasized that success in vertical SaaS hinges on one key ingredient: deep workflow integration. These companies become indispensable to their customers, reducing churn and increasing lifetime value. It’s not about shallow features—it’s about becoming mission-critical.“The future is not just SaaS—it’s vertical SaaS,” Marc concluded. “That’s how you build enduring, category-defining software companies.”

Corporate Venture Capital (CVC) can be both a powerful ally and a cautionary tale for founders and financial VCs alike. At the EUVC Summit, Nicholas Sauvage of TDK Ventures took the stage to break down the CVC landscape — past, present, and future — and give practical advice for founders considering CVCs on their cap tables.Nicholas challenged the audience with a question: who’s had a good experience with a CVC? Hands shot up and fewer hands went up for “bad experiences.” This, he noted, shows we’re at a new stage for corporate venture.He outlined the three eras of CVC:CVC 1.0: The early days, marked by balance-sheet-driven investments and corporate sponsorships. These often came with odd term sheets and slower processes, but could unlock synergies.CVC 2.0: Skipped over, just like today’s pre-seed to Series A jumps.CVC 3.0: The modern era: financially disciplined, strategically aligned, fast-moving, and structured like financial VCs without sacrificing strategic purpose.Importantly, Nicholas debunked the idea that financial and strategic returns are a trade-off - a "false premise," as he called it. The best CVCs aim for both: venture-type returns and deep strategic synergies.Nicholas shared the characteristics of high-performing CVCs:Fast decision-making (some in under 2 weeks!)Clear investment thesesSlim, empowered ICs (not consensus-based groups of 12)Strategic clarity and preparednessA giver mindset — value-add first, not value-extractHe also offered advice for traditional VCs:“Be thoughtful about when a CVC joins your cap table. Some are great at de-risking science, others support go-to-market — it's all about matching their superpower to your founder’s needs.”TDK Ventures uses a strict three-pillar framework:Contribution to societyVenture-type returnsStrategic synergy (giver-focused)If an opportunity scores less than 9/10 on any one of the three, they won’t invest. Why? Because climate tech and deeptech take time and patience, and TDK is playing a long game to back meaningful technologies — like Type One energy and nuclear fusion — that can shape humanity’s future.Before taking CVC money, ask the hard questions:What’s their why?What value do they add?Are they ready to support at the right stage of your journey?“Without exits, we don’t have a VC ecosystem,” Nicholas reminded the room — so make sure you’re partnering with CVCs who can help drive toward them.CVCs: The Good, the Bad, and the MisunderstoodWhat Makes a Great CVC?TDK Ventures' Framework: Triple MandateAdvice to Founders & VCs

Tom Wehmeier of Atomico took the stage to present the Achievement of the Year Award, offering a touching reminder of the power of community, storytelling, and persistence in building Europe’s venture identity.Before diving into the award itself, Tom took a moment to pay tribute to the unsung heroes who make the EUVC Summit possible. Special thanks went to:Dan Taylor, Director of Content, whose voiceovers shaped the tone of the event’s videos—even if he had to duck out early for a birthday party.Geraldine, for her tireless efforts behind the scenes, now rewarded with, in Tom’s words, “a very well-earned glass of wine—or two, three, I don’t mind!”It was a warm and human moment, reminding the audience that even in high-stakes venture circles, gratitude and team spirit are what truly drive momentum.Tom also took the opportunity to reflect on Atomico’s long-standing effort to amplify the voice of the ecosystem—particularly through their widely circulated surveys and reports. He playfully acknowledged the flood of emails and DMs over the years, encouraging people to contribute to the State of European Tech report.But beyond the spam, the intent was serious:“It’s been massively important to have the voice of tens of thousands of people shared and elevated… We’re all here because we believe Europe needs to tell its story in a positive way.”The Achievement of the Year Award isn’t just about one startup’s exit or one investor’s return—it celebrates initiatives that move the whole ecosystem forward. In a continent still carving out its narrative on the global venture stage, this recognition honors those who go beyond capital to inspire, build infrastructure, and create shared momentum.With that, Tom handed the mic back to Chris to announce the winner—but not before delivering a final rallying cry:“The need was great then. The need is even greater today.”Honoring the Builders Behind the ScenesThe Power of the Collective VoiceWhy This Award Matters

“Europe Can Win in Applied AI — If We Play to Our Strengths”In one of the most focused and forward-looking sessions of the summit, Juliet Bailin of General Catalyst made a compelling case for why Europe is uniquely positioned to lead in applied AI—not by copying Silicon Valley, but by doubling down on what makes the continent distinct.Juliet opened with a reminder of Europe’s superpowers:Regulatory complexity,Cultural and linguistic diversity, andStrong traditions in research and privacy.These aren’t weaknesses—they’re strategic advantages for human-centric, domain-specific, and trust-first AI.“Highly regulated industries are perfect for specialized AI,” Juliet argued. “And cultural diversity is crucial for building human-centric systems.”Rather than pursuing general-purpose models that require vast compute resources (a game already dominated by US giants), Juliet emphasized applied AI—targeted solutions built into real-world workflows. Europe’s leadership in sectors like healthcare, finance, and mobility offers the perfect foundation.General Catalyst is backing this with:Incubation of applied AI startupsAI roll-ups of legacy businesses with strong distributionPublic-private convenings via the General Catalyst InstituteJuliet called on governments to do more than fund foundational research:“We need governments that can incentivize the adoption of European, homegrown applied AI companies.”That means clear pathways for public procurement, regulation that encourages innovation, and aligned industrial policy.Her message to entrepreneurs was crisp and actionable:Build in regulated industries where Europe leadsPrioritize trust-first AI—privacy, explainability, fairnessJoin the EU AI Champions Initiative → AIChampions.eu(A platform to connect startups with the corporates and investors driving Europe's AI future)Juliet closed with a powerful vision—not just of returns or GDP growth, but of rewriting the social and economic history of Europe:“If we do this right… future historians will talk about it at the next EUVC summit.”Why Europe? Because We're Built for ItApplied AI Is Europe’s OpportunityA Call for Innovation-First PolicyWhat Founders Can DoFrom GDP to Legacy

Europe’s tech playbook has evolved — from mastering consumer internet and telecoms to now confronting the most ambitious challenge yet: the green transition. In a compelling Summit address, Natalie Tydeman of Kinnevik framed climate tech not just as a hot trend, but as the defining commercial and industrial transformation of our time.Despite political headwinds and shifting corporate rhetoric in some markets, Europe’s climate policy support remains strong. More importantly, we’re finally witnessing a turning point: climate tech is no longer about sacrificing economics for sustainability. As Natalie put it, the new breed of green solutions are both commercially viable and environmentally necessary.What’s needed from founders and investors alike? Patience, resilience, adaptability, and creativity. The capital profiles of these companies often look very different from classical tech — they’re more capital intensive, and success often depends on building coalitions of aligned investors.Natalie emphasized two core themes where Kinnevik is most focused:Green Supply ChainsEnergy TransitionThese areas are where the visibility of future revenue streams is strongest — crucial for unlocking project financing and credit facilities. Joint development agreements, government-backed low-cost financing, and project equity play a far bigger role than in SaaS or consumer models.Europe might lag in some tech metrics, but in climate it’s starting to pull ahead:~50% of EU energy is now renewable vs. under 20% in the US84% of consumers express a desire to shop more sustainablyGovernment and blended finance are now key backers of green venturesThis ecosystem makes it possible to build large, climate-positive businesses in Europe without sacrificing scale or returns.Natalie closed by reaffirming Kinnevik’s conviction: the green transition isn’t just a moral imperative — it’s a multi-decade economic opportunity. The fund is staying highly selective, but deeply committed to supporting the few ventures that can deliver climate impact and venture-scale returns in tandem.“We’re not looking for the most startups — we’re looking for the ones that will matter most.”Investing in Climate Requires Patience — and CreativityFinancial Ecosystems & Policy: Europe Has a TailwindThe Takeaway: Selective but Bold

At the EUVC Summit 2025, the award for Emerging Manager of the Year went to a team that has carved its place in Europe’s venture ecosystem with grit, heart, and vision: Tapestry Venture.Founding Partners Patrick Murphy, Audrey Miller, David Kelly, and Alex McKenzie were celebrated for their relentless effort to build something new—not just for themselves, but for founders and LPs across the continent.Not Just Another Fund. Not Just Another Story.Tapestry isn’t simply adding capital to the market. They’re challenging the established players in Luxembourg’s fund admin industry, pushing through barriers that often make it hard for emerging managers to break in.Patrick Murphy took the stage to accept the award, on behalf of his partners:“It’s amazing to be able to work with people I like so much every day for the last five years. At least now we’re all back in person—because it wasn’t so fun on Zoom.”From Ireland to VenturePatrick’s journey into venture wasn’t planned.“I grew up in Ireland building computers and websites. I didn’t know venture capital was even a thing—that people could believe in your dreams and then give you money to do something about them. It’s pretty wild. I’m glad venture found me.”That spirit—of discovery, belief, and persistence—is what defines Tapestry.In Service to FoundersIf there was one theme in Patrick’s words, it was service.“To be in venture is to be in service,” he said. “There’s no exam, no syllabus, no license for board members—though I wish there was. There’s no ombudsman, no complaint line for founders. So it’s up to us to raise our own standards. To be in service to the great founders who want to change Europe and change the world.”That vision is backed by their LPs and by a belief that the ecosystem thrives not through competition alone, but through collaboration—co-investors and friends lifting each other up.Leadership That Raises the BarFor Tapestry Venture, winning Emerging Manager of the Year is less about the trophy and more about the mandate:To challenge entrenched structuresTo empower founders head-onTo raise the standards of venture itselfCongratulations to Patrick Murphy, Audrey Miller, David Kelly, and Alex McKenzie of Tapestry Venture—Emerging Manager of the Year.Because in their words: “We’re all winners in this ecosystem. And we’re going to be here for a long time.”

At EUVC Summit 2025, one of the most anticipated sessions broke down a powerful data set: 100 of Europe’s breakout startups. This wasn’t theory—it was company-by-company insight, straight from interviews and bottom-up analysis.Yes, there were rogue slides.Yes, the crowd wanted to skip to the AI part.And yes, it delivered.~75% of these startups are based in Germany, France, and the UK.Despite growing noise around new hubs, Europe’s big three remain dominant. It reflects ecosystem maturity—but also a challenge: how do we better back breakout teams in the Nordics, Baltics, Southern Europe, and CEE?For the first time in years, Fintech dropped in sector rankings.Instead, we saw a wave of AI-native sales and marketing tools—building products that help companies grow smarter, automate go-to-market, and personalize customer acquisition at scale.“This year’s cohort is selling before building. AI is their leverage.”One of the most notable shifts: a significant increase in solo-founder companies.This reflects:A rise in repeat operatorsGreater early-stage toolingMore confidence in focused executionIt also implies VCs may need to shift their bias—many of these founders are no longer waiting for a co-founder to “complete” them.The moment everyone waited for: AI-native insights.49% of these 100 startups are AI-native at their core.This means:AI is not bolted on—it's the product itselfMany founders have already moved beyond horizontal LLMs to verticalized applicationsThey're monetizing via use-case depth, not just model architectureLast year’s 100 had an average of 25 employees per company.This year’s cohort? Just 14. That’s a 40% drop.But don’t mistake that for weakness—roles are more specialized, and teams are more surgical. These aren’t MVPs—they’re hyper-focused execution machines.“Today’s teams are smaller, sharper, and trained on efficiency from Day 1.”Across hundreds of founder interviews, one theme stood out:Tool loyalty is low.Founders are switching infra, models, APIs, and tooling with no hesitation.That’s not a sign of flakiness—it’s a sign of rapid evolution, where AI-native teams optimize continuously.Controversially, the speaker closed with a contrarian take:“I believe European AI regulation will actually accelerate enterprise adoption.”Why?Clarity breeds confidenceCorporate buyers need frameworksKnowing what’s allowed = faster go/no-go decisionsIn a twist, Europe might become the first-mover on enterprise AI—not in spite of regulation, but because of it.Final Message:“AI-native is not a trend. It's a new category of company. And Europe is building it—faster and leaner than ever before.”Let’s keep watching the signals. Let’s keep fueling the flywheel.🇫🇷🇩🇪🇬🇧 Still Rule the Map📉 Fintech Cools, GTM Tools Rise🧍 Solo Founders On the Rise💡 AI-Native: Not Just a Feature—A Foundation🧑‍💻 Teams Are Leaner, Sharper🔄 Low Loyalty, High Velocity🇪🇺 Regulation: Burden or Opportunity?

At the EUVC Summit 2025, the stage belonged to a voice shaped by geopolitics, defense, and the future of industrial innovation: Sebastian von Ribbentrop, Managing Partner at Join Capital.Sebastian took us on a journey—one that started in Berlin in 2017 with a cornerstone commitment from Eiser Capital, and has since expanded to NATO, Ukraine, and beyond.Not Just Startups. Not Just Capital.Join was born when European engineers left corporates like Siemens and Airbus to build their own ventures—but weren’t getting funded.Sebastian and his team stepped in. Today, with 148 LPs (90% from across Europe’s industrial heartlands), Join has become a backbone for the builders reimagining enterprise and defense.The paradigm shift became undeniable in 2023, when the NATO Innovation Fund wrote its largest ticket into Join Fund II. It wasn’t just capital—it was a mandate to help reshape defense and industrialization.A New Industrial MomentFrom Washington’s NATO anniversary to trips into Ukraine, Sebastian’s message was clear: the defense supply chain has transformed.It is now:FastTargetedSmartAnd while Europe faces inefficiencies (43 different tanks vs. one Abrams in the U.S.), it also faces a massive market opportunity.Billions at PlayThe scale is unprecedented:€200 billion from Ursula von der Leyen into defense & infrastructure€500+ billion from Germany’s new chancellor, Matz$500 billion floated by Trump over the next five yearsThese aren’t subsidies—they’re revenues. Offset programs that give companies the ability to build products, not just pitch ideas.DARPA, Dual Use & the Technology RaceSebastian reminded the room: shocks create breakthroughs. Sputnik birthed DARPA, which still deploys $4 billion annually into challenges.Now, the race is on—dual-use technology, export restrictions, inexpensive smart radar systems taking down next-gen jets.Europe, he argued, must catch up. But it has the chance to lead.“Geopolitics,” he quoted Kissinger, “is 100% personal.” And Europe must take responsibility—urgently.Leadership With TeethSebastian’s talk wasn’t about abstractions. It was about:How wars reshape supply chains overnightHow NATO’s backing changes venture capitalHow Europe can seize its industrial and defense momentBecause leadership in this decade won’t be written in press releases. It will be written in supply chains, radar systems, and the speed of capital deployment.Congratulations to Sebastian von Ribbentrop and Join Capital—for reminding the ecosystem that industrial innovation isn’t just defense spending. It’s Europe’s opportunity to lead in a world being reshaped, fast.

At the EUVC Summit 2025, Andreas Klinger didn’t mince words.Europe lacks something every other industry has had for decades:→ Big spending→ Big infrastructure→ Big exitsAnd without them, we can’t pretend we’re building a sovereign innovation ecosystem.“Europe needs tech innovation to work—because without it, we will never be fully sovereign.”Andreas opened by flipping a common narrative:“Startups are too often framed as small, creative, ambitious companies. But in reality—they’re the foundation of sovereignty in tech.”Europe doesn’t need more “projects.”It needs repeatable, scalable, founder-first infrastructure to unlock its next wave of global tech companies.“The easiest way to explain EO Inc? It’s Deliveroo—but for incorporation. A European legal and operational standard for startups.”The idea is deceptively simple:Standardized formationRecognized structures across all member statesSeamless stock option systemsTaxation only at exitBank acceptance by default“This isn’t just for startups. It’s a company structure any business can use—built for the modern economy.”And the movement? It’s already here:16,000+ signatoriesBacking from founders of Wise, Bold, and countless unicornsSupport from every major VC fund and ecosystem body in EuropeGrowing traction in BrusselsThis wasn’t launched by a ministry.It wasn’t cooked up by consultants.“EO Inc was built by founders, VCs, and ecosystem people who literally just got together in a WhatsApp group.”The message is clear:You don’t need permission. You need momentum.Andreas ended on a blunt but vital point:“If one of my founders did an IPO in Europe right now—I’d sue them.”Why? Because there’s no pan-European IPO framework. No deep exit market. And without exits, VC doesn’t work.“So please. Someone. Anyone. Get together and fix this.”He wasn’t joking.He was inviting.Andreas closed with the same clarity he opened with:“You can just do things.”This wasn’t a stage for platitudes—it was a platform for action.So if you know a policymaker, a president, a minister—connect them to EO Inc.And if you care about making European venture work—get involved.Thanks, Andreas—for reminding us that sovereignty isn’t just about borders. It’s about infrastructure.Let’s build it.Startups Aren’t Small. They’re Strategic.Introducing EO Inc: Europe’s Standard Startup InfrastructureFounders Did This. In a WhatsApp Group.The Missing Piece: IPOs in EuropeFinal Words: Just Do Things