Europe should be recognized for BottleCap AI, not bottle cap memes. This Prague-based AI startup, with a cleverly playful name, is one of the teams that venture capitalists think you should know about.
While European startups do make waves—Lovable and Mistral AI are examples—many others haven’t yet hit nine digits in annual recurring revenue but are still being closely monitored by insiders.
This list highlights such startups. Recently, we asked investors from Europe’s well-known venture funds to each recommend two startups: one from their portfolio (because they invested in it) and one outside of it (because they can’t invest in every good idea). We also added a few of our own choices.
These startups, at various stages from pre-launch to unicorn and spanning multiple sectors, demonstrate how European deep tech talent can help the region leverage its strengths in the AI race.
## Alta Ares
**Recommended by Julien Codorniou, general partner, 20VC.**
**What it does:** Alta Ares develops AI-powered counter-drone systems.
**Why it’s worth watching:** Defense tech is trending, especially in Europe, where the war in Ukraine highlighted the need for modernization. Alta Ares provides affordable solutions to detect and combat drone incursions.
## Apron
**Recommended by Jan Hammer, partner, Index Ventures (investor).**
**What it does:** Apron provides invoice management for small business owners.
**Why it’s worth watching:** SMEs are a lucrative sector for fintechs; business owners are willing to invest in saving time, and there are millions of them.
## Botify
**Recommended by Claire Houry, general partner, Ventech (investor).**
**What it does:** Botify helps brands increase their visibility in AI searches.
**Why it’s worth watching:** As companies shift from SEO to generative engine optimization (GEO), Botify—which already embraced the transition—stands out despite having competitors like Otterly.AI and Profound. With major clients such as Macy’s and The New York Times, it’s well-positioned.
## BottleCap AI
**Recommended by Julien Codorniou, general partner, 20VC (investor).**
**What it does:** BottleCap AI develops efficiency-focused foundational LLMs and apps.
**Why it’s worth watching:** Founded by a team including a former entrepreneur who sold a company to Meta, BottleCap takes a dual approach, building its own models and apps, including the AI-powered news app Pulse.
## Cailabs
**Recommended by Flavia Levi, investment manager, Join Capital.**
**What it does:** Cailabs develops photonics for aerospace, defense, and industrial applications.
**Why it’s worth watching:** Based on advanced research in light science, Cailabs promises faster and more robust data transmission, with plans for 50 optical ground stations to meet the growing demand for laser communications with satellites.
## Cala
**Recommended by TechCrunch’s Anna Heim.**
**What it does:** Knowledge graph for AI agents.
**Why it’s worth watching:** Cala aims to fill the knowledge gap for AI agents. Founder Elisenda Bou-Balust, a noted Spanish entrepreneur and AI expert, previously sold her company Vilynx to Apple in 2020.
## Flower
**Recommended by Pär-Jörgen Pärson, partner, Northzone (investor).**
**What it does:** Renewable energy management.
**Why it’s worth watching:** Flower uses AI and battery energy storage systems to stabilize wind and solar energy use. The Swedish company recently raised over $60 million in bonds for scaling.
## Fundamental
**Recommended by Jonathan Userovici, general partner, Headline (investor).**
**What it does:** Foundation AI for big data analysis.
**Why it’s worth watching:** Fundamental’s foundation model, Nexus, helps enterprises extract insights from data. Valued at $1.4 billion post a $255 million Series A, it emerged from stealth recently.
## Gradium
**Recommended by Jonathan Userovici, general partner, Headline.**
**What it does:** AI voice models.
**Why it’s worth watching:** Gradium’s models offer real-time text-to-speech in multiple languages. A spinout from French AI lab Kyutai, it raised a $70 million seed round, competing with ElevenLabs.
## HappyRobot
**Recommended by Pablo Ventura, general partner, Kfund.**
**What it does:** AI agents for complex use cases.
**Why it’s worth watching:** Backed by a16z and Y Combinator, HappyRobot focuses on deploying AI agents that deliver ROI. Although headquartered in the U.S., its co-founders and part of its team are Spanish.
## Inbolt
**Recommended by Claire Houry, general partner, Ventech.**
**What it does:** Physical AI for factories.
**Why it’s worth watching:** Inbolt, by combining AI and robotics,