Hello,

Welcome to Sunday CET! We’re entering the 20th week of the year and feels like a whole cycle already, now that the spring is fully here.

This week we look at the Swedes high on AI, Europe’s socialism and Elon versus the French republic.

Enjoy,
Dragos

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Signals

We have screened 122 fundraising deals closed in Europe in the past seven days.

We archive/transform deal-related data into an easy-searchable intelligent asset at N9, and email a selection of the interesting ones to our customers every week.

Interesting early stage deals

🇱🇻 BirdyChat - professional messaging platform
🇬🇧 Five ID - palm wearable used to verify and make contactless payments
🇳🇱 FrostByte - cryogenic tech for quantum
🇩🇪 Invertix - autonomous AI agents to operate renewable energy assets
🇩🇰 NucleoWatch - platform for real-time radiation detection and 3D localisation of radioactive sources.

Cheat sheets

Market notes

Lime is looking to IPO - $887M in revenue last year, 40-50% of which out of Europe.

  • meanwhile the European scooters operators are under the 200m a year mark (Tier - 188m, Voi - 193m) - all part of VC vintages looking to see some liquidity events for a long time.

  • on a related note, this week Voi’s main investor proposed an incentive program aimed at retaining management through a 10% growth equity stake for CEO Fredrik Hjelm.

  • that may or may not have something to do with the fact that the dude, besides being a fairly active investor in Sweden, is also doing with other Voi co-founders a gig selling enterprise SAAS seeded by a16z with handsome 16M earlier this year.

  • the 1T that gig is after seems like a stretch and Sthlm in general feels a bit too high on AI, but at the end of the day irrational exuberance can be as well a driver for building meaningful stuff, I guess.

Kalshi raised 1B at 22B with Coatue, an 11X step up from last June and which validates the prediction markets thesis.

  • btw, in the past few weeks we’ve tracked two European wannabes getting funded as well over at Nordic9. The one I am keeping an eye on though is this one.

OnlyFans owner, Fenix, sold a 16% stake to Architect Capital for $535 million, valuing the company at $3.15B.

  • OF is at 7B+ GMV and 1.4B intakes for 2025 - interesting to follow, as their owner passed away a couple of months ago, and the widow took control.

The Guardian with a patriotic piece discovering that Aria of UK also works with American VCs (Pillar VC, Fifty Ventures) for local tech development programs.

  • putting the drama aside, we live in a transactional world and it’s how business works.

  • point is, it’s a two-way street and there’s much more than the public eyes can see - for example, last year when Trump visited the UK, Nvidia announced having 2b as co-investment package to whatever five local London VCs would spend on British startups (Accel, Air Street, Balderton, Hoxton and Phoenix Group).

Wealth in Europe has become increasingly concentrated, while taxes on wealth have generally declined over recent decades - that’s per an EU study likely groundwork for future EU-wide wealth taxation.

  • it makes sense, no? We’re mid wars, far from equilibrium, Europe’s population is aging, we’re tech laggards, growth is slowing, debt is accumulating, of course there’s need for exploring new revenue sources.

  • however - taxing more as a value extraction mean is the wrong problem to solve today. Economic growth is where it’s at - my theory is that if you don’t have enough money to spend, it means you need to make more, which kinda contradicts the socialism doctrine Europe is run by.

Santander to sell a SRT worth €500 million of BNPL loans in Germany to protect its BNPL unit (Openbank) from credit default losses - last time I read about a BNPL crunch was during the pre-2022 crisis.

Anthropic planned for a 10x growth and in the past Q it did 80x annualized, hence their scaling problems. It’s also why it’s trading at $1+ trillion valuation.

Elon vs the French republic to the next level - shit looks serious, will Musk have Trump call Macron for a pardon?

  • in short, Musk and his former CEO were summoned for questioning in Paris over whether both Twitter and Grok knowingly allowed or failed to stop illegal activity on the platform regarding political manipulations and AI-generated sexual abuse materials and deepfakes.

  • Musk otoh frames this investigation as censorship and political targeting, claiming Europe is trying to criminalize platform management and political speech.

  • unclear who ‘Europe’ specifically is - fwiw, Elon is super vocal on Twitter with all sorts of conspiracy theories about about how bad life in Europe is, aligned to the US governmental official position that Europe is in danger of civilizational erasure (page 25).

  • in France, once a judicial investigation opens, judges can compel testimony, seize records, and potentially pursue formal charges if they think executives were involved or negligent. It’s the law, and usually European tech leaders don’t fuck around with this kind of stuff.

  • alas, Musk has gotten the American government on his back, which makes the whole situation a combo of legal implications and a test case about how far European states can go against global tech owners.

  • apropos of calls, my morning was made by reading how Putin called Trump to ask Zelensky not to bomb for 45 minutes his Red Square gig.

Three decent media projects you need to follow to distill signal from noise from European tech, other than Nordic9 that is - they’re drama-free, professional and done by experienced guys, all former TC Europe veterans. Give them a follow, if you haven’t already, good content needs to be supported:

Also notable:

  • consumers nightmares having to deal with street banks, the papal edition.

  • SEC proposes allowing public companies to opt out of quarterly earnings reports.

  • a Japanese toilet maker will double down on selling its high-tech ceramics as semiconductor components crucial to the AI buildout.

  • Brian Chesky with Patrick O’Shaughnessy make for a good running pod.

  • things are so bad in the US of A that they sell counterfeit tomatoes.

  • the SF housing market is crazy.

  • (P) Who are the American VCs in London? Get a Pro and find out!

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Created every Sunday by @drnovac of Nordic 9 with weekly notes and observations from the European startup ecosystem.

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