VC Angle Weekly Briefing #28: Revolut Hits a $75B Valuation & European PE Jumps 105% in Q3
VC Angle Weekly Update #28
Hey - welcome to the twenty-eighth 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:
Revolut reaches $75B valuation
Lagarde: Europe missing AI wave
EIB launches €500M space fund
Germany readies second €1B fund-of-funds
Switzerland dominates European spinout efficiency
European PE surges 105% in Q3
⏱️ 4:05 Reading Time
📰 What Happened This Week
Revolut completed a secondary share sale at a $75 billion valuation, up from $45 billion fifteen months ago. The round was led by Coatue, Greenoaks, Dragoneer, and Fidelity, with Nvidia’s NVentures, Andreessen Horowitz, Franklin Templeton, and T. Rowe Price also participating. The fintech posted $4 billion in 2024 revenue (up 72% year-over-year) and $1.4 billion in profit before tax, serving over 65 million users across 39 countries. This marks Revolut’s fifth employee share sale.
ECB President Christine Lagarde told the BratislavAI Forum in Bratislava that Europe risks falling behind on AI adoption despite global corporate investment reaching $252 billion over the past year. Lagarde said Europe has “already missed the opportunity to be a first mover in AI” but can still become a strong second mover by focusing on rapid deployment rather than trying to create leading AI models.
She identified barriers including high energy costs, fragmented regulations, and lack of integrated capital markets, warning that delays could jeopardize Europe’s future competitiveness against the US and China.
Dutch fintech POM acquired Denmark’s FarPay with backing from Vortex Capital Partners, combining POM’s receivables management with FarPay’s invoicing automation. Both companies were founded in 2014. FarPay will operate as an independent brand within POM Group with all employees retained.
The European Investment Bank launched Space TechEU, its first dedicated financing programme for Europe’s space sector, announced at the European Space Agency’s Council of Ministers meeting in Bremen. The programme includes €500 million in EIB financing expected to mobilise €1.4 billion in total investment through commercial bank partnerships.
Germany plans second €1B fund-of-funds after deploying 80% of first
Germany is planning a second €1 billion fund-of-funds after its Growth Fund Germany deployed more than 80% of its capital two years after its 2023 final close. The first fund invested €825 million into 41 VC firms that have collectively backed 360 startups, with 54% allocated to growth funds, 35% to early-stage funds, and 11% to generalists.
🔍 Reads & Reports
European Spinouts Report 2025: Switzerland leads in spinout efficiency
Switzerland ranks first in Europe for spinout value per capita and per STEM graduate, scoring 100 on the per capita index versus 33 for the runner-up, while placing third in absolute combined enterprise value at $44.6 billion behind the UK and Germany. ETH Zurich (#3) and EPFL (#4) rank among Europe’s top five universities for spinout value creation, with ETH Zurich holding the #1 position in both robotics and climate tech. Spinouts now account for 40% of new deep tech and life sciences startups in Europe since 2019, an 80% increase compared to 2010-2018. Switzerland directs 60% of all VC funding to deep tech, the highest share globally, surpassing Israel (49%), Sweden (44%), and the US (43%).
Deloitte: European defense VC faces concentration and scaling challenges
Deloitte reports that VC has flowed into European defense at levels not seen since the Cold War’s final decade, but capital concentration remains problematic as drones, ISR platforms, and command-and-control software absorb disproportionate attention while energetics, electronic warfare, advanced materials, and logistics remain neglected.
Europe faces a “valley of death” between early-stage funding and Series B production capital, with ESG frameworks penalizing defense exposure and regulatory fragmentation limiting deals. The most common exit path is strategic acquisition by primes rather than IPOs, with recent examples including BAE’s purchase of Malloy Aeronautics and Helsing’s acquisition of over half a dozen mature companies.
Ropes & Gray: European PE sees 105% jump in deal value in Q3 2025
European PE completed 1,107 deals totaling €121 billion in Q3 2025, down 3% in count but up 105% in value versus Q2, with the top five deals accounting for €50 billion. Cross-border activity with the US spiked as deal value increased 952% versus Q2, driven by Keurig’s €19.7 billion acquisition of JDE Peets. Global fundraising saw 202 funds raise €437 billion, down 30% in fund count but up 2% in value, signaling larger, more concentrated funds. Three IPOs occurred in Q3, with data centers, sustainability infrastructure, and secondaries highlighted as key deal drivers.
💶 Where Funds Went (Or Will Go)
Startups
🇩🇪 Quantum Systems → Raised €180M Series C extension to scale dual-use aerial intelligence and lift valuation above €3B.
🇬🇧 Model ML → Raised $75M to scale its AI automation platform for financial services.
🇨🇭 Cerrion → Raised $18M to expand AI video agents preventing industrial downtime.
🇨🇭 Gravis Robotics → Raised $23M to scale autonomous earthmoving robots.
🇬🇧 StirlingX → Extended Seed to $11M to expand drone operations and intelligence systems.
🇵🇱 Juo → Raised €4M to expand its physical-product subscription platform.
🇩🇪 NutriUnited → Secured €8.5M Seed to support family-owned food producers.
🇫🇮 Gosta Labs → Raised €7.5M Seed to scale its AI OS for oncology.
🇪🇪 PowerUP Energy Technologies → Raised €10M Series A to grow hydrogen energy systems.
🇩🇰 Nordic Salt Cycle → Raised €3.5M to scale molten-salt mineral recovery.
🇮🇪 InvenireX → Raised £2M (€2.3M) to commercialise its disease-detection biotech.
🤝 M&A
🇬🇧 BKN301 → Expanded Series B and acquired UK fintech Planky to strengthen AI-first banking.
Investors
🇵🇹 Índico Capital Partners → Launched €125M Fund focused on early-stage European tech.
🇬🇧 6 Degrees Capital → Closed €154M fund backing enterprise software and AI.
🇫🇷 Clover → Raised €30M to become a specialised investor in work and education tech.
🇬🇧 Solo GP Fund Baobab→ Launched $15M by early ElevenLabs and Revolut investor.
🇩🇪 Future Energy Ventures (FEV) → Secured €205M to power next-generation energy innovation.
👋 That’s a wrap for this week.
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