SeedBlink Blog

Artificial intelligence is changing how we work and live, sparking excitement and debate. With billions of dollars in venture capital flowing into AI-first startups, the technology is fueling innovation and raising important questions about job displacement and ethical standards.

Focusing on Europe’s AI scene, we dive into record-setting funding rounds, inspiring success stories, and the evolving regulatory landscape, which aims to balance innovation with oversight.

Whether you're a founder looking to scale your business or just curious about the future of tech, this article breaks down the industry's major trends, challenges, and opportunities.

The pros & cons of AI

Artificial intelligence has changed many industries and continues to do so on a large scale. It influences efficiency, automation, and problem-solving, allowing businesses to scale like never before. For founders, AI brought the unique opportunity to simplify operations and optimize some processes for better productivity and profitability.

According to the 2024 Venture Wrapped by Dealroom, startups worldwide raised $330B in venture capital last year. Of this total, AI-first companies received $110B, representing a 62% year-on-year increase in AI investment. The data further highlights notable regional differences in AI funding allocation. In the United States, 42% of venture capital was directed to AI startups, while Europe and other regions accounted for 25% and 18%, respectively.

Source: Venture Wrapped by Dealroom

At the heart of AI's advantages is its ability to transform how work gets done. By automating repetitive tasks and solving complex problems quickly, AI helps reduce operational costs and accelerates time to market. This efficiency frees up employees, allowing them to focus on innovation and supporting strategic scaling.

However, the rise of AI is not without its challenges. Concerns such as job displacement, ethical dilemmas, and bias in AI systems have sparked a lively debate about the impact of technology. Some startups are even beginning to advertise “AI-only” job positions, aiming to automate repetitive tasks. According to Sifted, Estonian e-commerce company Hertwill, for example, posted roles exclusively for AI agents and hopes they can handle 70-80% of certain workflows.

While these posts are partly a way to find AI engineers, investors suggest that AI agents could automate as much as 50-75% of some jobs within six months, though full replacement of humans remains unlikely in the near term.

These challenges, for both founders and investors, highlight the need for clear regulatory frameworks and moral guidelines to ensure that AI benefits society.

The State of AI in Europe

AI funding in Europe reached record levels in 2024, accounting for a record 18% of all VC funding. Over the past decade, investments in AI have grown tenfold, driven by increased investor confidence and rapid technological advancement.

Source: AI Europe Report by Dealroom

The sector is the third-largest in terms of funding and the fastest-growing in 2024, surpassed only by energy and robotics in growth since 2016.

Source: AI Europe Report by Dealroom

Europe’s AI investment is concentrated in a few leading countries, but others are quickly catching up. Historically, the UK, France, and Germany have attracted the bulk of AI funding and remain top hubs. In 2024, French AI startups took the lead, raising over €1.3B (about half of all European AI funding that year), followed by Germany at €910M and the UK at €318M.

Beyond these big three, the rest of Europe accounted for roughly €0.5B in AI deals in 2024​. Emerging hubs like the Netherlands, Sweden, and Spain are contributing increasingly to this total. For example, the Netherlands produced a new AI unicorn (DataSnipper, an AI-driven audit automation platform), which reached a $1B valuation in 2024 after a major funding round​.

Sweden and Switzerland are also performing well. A recent global index ranked Sweden as the most attractive country in Europe to start an AI business, with Switzerland second​.

The Recursive’s State of AI in CEE Report 2024 offers us the most recent update from Central and Eastern Europe, with AI startups securing approximately €1.4B in funding during 2023–2024.

Poland remains the top destination for AI funding in Central and Eastern Europe, followed by Greece and Croatia, each surpassing the €100M mark so far this year. Romania, Slovakia, Bulgaria, the Czech Republic, and Hungary show moderate inflows, while the Western Balkans, led by Serbia, still attract only a small portion of total AI investment, approximately €3M in 2024. Across most CEE countries, the majority of deals occur at the pre-seed and seed stages, indicating a strong focus on early-stage ventures.

Source: State of AI In CEE Report 2024

Central and Eastern Europe’s AI investment landscape is undergoing a recalibration following the 2021 valuation bubble. While some companies have seen their stock prices drop significantly, investor interest in AI remains strong: according to the survey data, 99% of VCs in the region are actively investing in AI startups. This shows us a growing focus on projects that demonstrate clear market potential and well-structured execution plans.

Despite a general slowdown in exits, the appetite for AI-driven innovation is evident, with many investors pivoting to profitability and sustainability as they deploy fresh capital.

According to the same report by The Recursive, founders face persistent challenges in areas like: commercialization (45% of respondents), talent acquisition (37%), and data quality (35%). Regulatory challenges (31%), technology risks (22%), and ethical considerations (17%) add further complexity. In response, over 20 new funds have recently launched in the region, collectively amassing over €1.15B.

Top European VC funds investing in AI startups

As AI continues to reshape industries and drive growth, top VC funds across the continent are stepping up, recognizing the vast potential of innovative startups. Below is a list of the top 10 investors in European AI, ranked by the number of investments they have made.

1. AI Seed – Based in London, England, United Kingdom – 35 AI investments
2. Amadeus Capital Partners – Based in Cambridge, Cambridgeshire, United Kingdom – 42 AI investments
3. Bpifrance – Based in Maisons-Alfort, Ile-de-France, France – 54 AI investments
4. Elaia – Based in Paris, Ile-de-France, France – 34 AI investments
5. Enterprise Ireland – Based in Dublin, Ireland – 37 AI investments
6. HTGF | High-Tech Gründerfonds – Based in Bonn, Nordrhein-Westfalen, Germany – 39 AI investments
7. IQ Capital – Based in Cambridge, Cambridgeshire, United Kingdom – 39 AI investments
8. LocalGlobe – Based in London, England, United Kingdom – 43 AI investments
9. MMC Ventures – Based in London, England, United Kingdom – 37 AI investments
10. Speedinvest – Based in Vienna, Austria – 40 AI investments

If you are the founder of an AI startup that wants to discover more about the dynamic world of European VC investments in AI and connect with the right partners to accelerate your growth, explore our comprehensive European VC network.

AI startups that raised funding through SeedBlink

Here is a snapshot of AI startups that have successfully raised various fundraising rounds through SeedBlink.

1. Adastec (Bridge round) – Focuses on AI-driven autonomous vehicle technology for public transportation.
2. Alcatraz AI (Series A) – Delivers AI-based security solutions for physical access control in corporate environments.
3. Brightmind.ai (Seed) — A platform designed to help manage and treat migraines, and in the future, other brain health conditions like dementia.
4. CodeWell AI (Pre-Seed) – Develops AI tools to streamline code generation and software development workflows.
5. Contents.com (Series B) – Built on the idea of leveraging Generative AI to usher in a new era of content creation, Contents offers personalized, high-performing creations at scale.
6. DRUID AI (Series A) – Specializes in conversational AI platforms that automate customer and employee interactions.
7. FlowX AI (Series A) – A startup that offers enterprise-grade AI software, enabling digital transformation for large organizations.
8. Footprints AI (Seed) — Advanced retail media and data insights solutions to help retailers optimize advertising and customer engagement.
9. Fretello (Late-Seed) — An AI-powered interactive guitar learning app designed for beginners.
10. inHeart (Late-Seed) — An AI-powered digital twin of a human heart that helps cardiologists treat their patients more efficiently and effectively.
11. .lumen (Late-Seed) – A DeepTech startup that builds glasses that empower the blind to live a better life.
12. SalesOMMO (Pre-Seed) — A virtual companion for people in sales and business development.
13. SecurifAI (Seed) – A company specializing in AI/ML solutions to enhance security and risk management.
14. Synaptiq (Seed) – Provides AI-based analytics and data intelligence solutions for enterprise clients.

Tap into the next AI opportunities

For investors eager to back the next wave of AI innovations, keep an eye on SeedBlink’s top-tier startups. You’ll get early access to promising ventures, a transparent investment process, and the opportunity to diversify your portfolio with cutting-edge technologies.

Are you an AI startup looking for funding? Check out SeedBlink’s offering, from syndicated investments from your own network to cap table clean-ups, strategic fundraising advice or crowdfunding.

And since we’re talking about AI, If you’re looking just to brush up your pitch deck, why not use our AI pitch review tool? Get an account on SeedBlink, activate our 14 day Free Trial and get that pitch deck in good shape for free.