The race isn’t over for European AI startups, according to Accel Parther Philippe Botteri

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Oct 23, 2024

Philippe Botteri, a partner at Accel with extensive experience in AI, Cloud, and enterprise sectors, provides keen insights into the evolving landscape of European AI startups. He emphasizes that the AI race is just beginning, predicting massive funding growth to $79.2 billion by 2024. The conversation highlights Europe's talent advantage despite investment challenges, the impact of AI on software, and increasing M&A activity. Botteri forecasts a transformative 'agentic revolution' in 2025 that will redefine software development and productivity.

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ANECDOTE

Europe's Rise in Tech

In 2011, journalists questioned Europe's ability to produce a billion-dollar company.
By 2021, UiPath, from Bucharest, became the largest global software IPO.

INSIGHT

AI's Impact on Software

AI is driving software's resurgence after the 2021 downturn, impacting both public and private markets.
AI investments fuel a 65% growth in private cloud companies versus 2020.

INSIGHT

Challenges for Traditional Software

Traditional software companies face slower growth as AI attracts significant investment.
Factors like increased spending, platform consolidation, and macro uncertainty contribute to this.

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“It's a bit too early to say that the race is over,” said Philippe Botteri when asked about European startups’ AI progress. “I think we're just at the very early innings of this race.”

Botteri is a partner at early-stage investment firm Accel with over 13 years under his belt at the firm, leading investments in DocuSign, UiPath and more recently Snyk and Chainalysis. Today on TechCrunch’s Equity podcast, host Rebecca Bellan caught up Botteri to dive deep into Accel’s Euroscape 2024 Report. Tapping into Botteri’s experience in Cloud, SaaS security, and enterprise sectors, the pair discuss AI's rising influence, its impact on software and cloud investments, and how European startups can compete with the US.

Listen to the full episode for more about:

How AI is eating the software market, with AI and cloud funding predicted to hit $79.2 billion by the end of 2024.
The challenges faced by traditional software companies as funding growth slows outside of AI.
Why Europe’s strong talent pool gives it an edge in the AI race, even as startups on the continent struggle to compete with the ungodly amounts of money U.S. tech giants have.
Increased M&A activity globally amid a slow IPO market.
Why 2025 will be the year of the “agentic revolution” with AI significantly impacting software development and productivity.

Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo, and posts every Wednesday and Friday.

Subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts. You also can follow Equity on X and Threads, at @EquityPod. For the full episode transcript, for those who prefer reading over listening, check out our full archive of episodes over at Simplecast.

Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.

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