VC Angle Weekly Briefing #10: NATO Fund Refreshes While US Raises 10x More Mega-Funds Than EU
VC Angle Weekly Update #10
Hey — welcome to the tenth edition of VC Angle Weekly Updates! As always, we're keeping tabs on what actually matters across 🇪🇺 European tech. If something broke the news this week and it's worth your time, it's probably below. Scroll on for the deals, roles, reads, and events you'll want on your radar.
In This Edition:
Defense tech breakout with NATO fund refresh and French military deals
AI/ML tops European VC sectors, capturing third of H1 investment
US raises 10x more mega-fund capital than Europe ($250B vs $25B)
European VC deals drop to €29.2B, fundraising crashes 53%
Supercell CEO: Europe should stop copying Silicon Valley
Luxembourg offers €150K equity-free funding for startups
📰 What Happened This Week
Fit 4 Start opens applications for 16th edition offering €150K equity-free funding
Luxembourg's startup accelerator opens applications for its 16th cohort, providing up to €150,000 in non-equity funding plus coaching. Program targets digital ventures (IoT, AI, blockchain), healthtech (digital diagnostics, medical devices), and space sectors. Nearly 200 startups from 35 countries have participated, with Luxembourg offering strategic European market access.
SilMach selected by French military to supply smart ballistic plate sensors
French deeptech startup SilMach wins contract with French Defence Procurement Agency to monitor bulletproof vest integrity. Their ChronoMEMS technology provides energy-free sensors that detect impacts on ceramic ballistic plates, helping soldiers assess equipment damage through visual indicators. Production begins autumn 2025 in Besançon, with first deliveries September 2025.
NATO Innovation Fund restructures investment team amid defense tech boom
NATO Innovation Fund refreshes leadership with two new partners after securing $1B from 24 countries. New hires include Ulrich Quay (ex-BMW i Ventures VP) and Sander Verbrugge (ex-Innovation Industries partner), while Patrick Schneider-Sikorsky remains from original team. Fund has made 19 investments to date (7 funds, 12 startups) as defense tech reaches 10% of European VC funding.
🔍 Reads & Reports
Supercell CEO: Europe should stop copying Silicon Valley and build on distinct strengths
Supercell CEO Ilkka Paananen argues Europe should focus on its unique advantages rather than replicating Silicon Valley in new Sifted podcast. He believes Europe has strong, growing founder networks and distinct strengths that don't require becoming another Silicon Valley. Paananen advocates for Europe forging its own entrepreneurial path instead of copying US models.
AI and machine learning claimed the top spot among European VC sectors in 2025, reflecting investor appetite for artificial intelligence despite broader market uncertainty. The sector's rise to #1 from previous years demonstrates the continued flight to quality, with AI accounting for over a third of all H1 2025 investment.
European VC deal activity declined to €29.2 billion in H1 2025, continuing the normalization from 2021-2022 peaks when annual deal values exceeded €100 billion. While venture debt remained resilient at €9.2 billion, fundraising crashed 53.1% year-over-year to just €5.2 billion in H1, creating potential future supply constraints. Exit values are projected to cool 12.3% annually, putting pressure on liquidity and raising sustainability concerns for the ecosystem as IPO markets remain challenging.
US venture capital dwarfs European fund formation across all size categories
New data reveals massive differences in VC fund formation between US and EU markets from 2016-2024. The US raised over $250 billion in mega-funds ($1B+) compared to roughly $25 billion in Europe. The disparity is most pronounced in large funds: zero European VC funds exceed $5 billion versus 50+ in America, while fewer than 25 European funds range $1-5 billion compared to 250+ US funds. This funding gap creates self-reinforcing advantages for US venture capital, particularly as AI startups generate outsized returns that enable even larger fund formations.
💶 Where Funds Went (Or Will Go)
Startups
🇫🇷 Electra secures €433M green loan for ultra-fast EV charging network expansion
🇬🇧 Sunsave raises €130M to scale zero-upfront solar subscription model
🇩🇪 Makersite raises €60M Series B for AI-powered product lifecycle management in manufacturing
🇩🇪 Buena raises $58M from GV and 20VC to consolidate property management through AI rollups
🇬🇧 inforcer raises $35M Series B to power MSPs with Microsoft security and AI tools
🇬🇧 Lightyear raises $23M Series B for AI-powered investment market intelligence platform
🇵🇹 Lyzer secures €10M+ to expand Logistics as a Service internationally
🇨🇭 ASTRA Therapeutics raises €8.3M to develop precision parasiticides for animal health
🇬🇧 Fuse Energy raises €8.5M additional funding to advance energy solutions
Investors
🇩🇪 Auxxo Female Catalyst Fund closes €26M first close of Fund II to back female-founded startups across Europe
🇬🇧 Science Creates and Pioneer Group announce partnership to support science and tech ventures across UK and Ireland
🇩🇪 TechVision Fund closes €50M+ Fund II to invest in early-stage startups
🇫🇷 Yaday family office launches €100M investment fund
💼 Open Roles
Redalpine → Investor Relations Intern in Zug, Switzerland. Apply here.
Marble → Junior Platform & Venture Ops Analyst in Paris, France. Apply here.
Maki.vc → Venture Capital Intern in Helsinki, Finland. Apply here.
First Momentum Ventures → VC Investment Intern in Munich, Germany (Remote). Apply here.
YZR Capital → Visiting Analyst in Munich, Germany. Apply here.
👋 That’s a wrap for this week.
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