Startup Europe — The Sifted Podcast

If 2025 was the year of the AI agent, what will 2026 be? Which companies will make headlines — for all the right, or all the wrong, reasons? And will optimism around Europe’s startup ecosystem continue to mount, or will geopolitical tensions throw spanners in the works?On this episode of the Sifted Podcast, news editor Martin Coulter joins editor Amy Lewin to discuss what they think will be the big topics this year in European startups and VC — and what you, our dear listeners, should be watching out for. They cover: If — or when — the AI bubble will burstWhich shiny sectors will attract a lot of venture funding What the year might hold for ‘sovereign’ tech startupsWhich tech billionaire might run for president (in Europe)What developments are likely to be in store for the VC industry This episode was produced by Maya Dharampal-Hornby.Further reading: A spacetech IPO, a robot decacorn and a (European) entrepreneur running for president: Sifted’s predictions for European tech in 2026Sign up to Sifted’s Daily newsletter 

When NATO announced plans to launch a €1bn innovation fund back in 2022, heads turned. €1bn? To invest in defence and security? Backed by 24 countries? At the time, most European VCs were still incredibly wary of backing defence companies — and nothing like this had ever been attempted before.Three years on, host Amy Lewin is joined on the Sifted Podcast by Dame Fiona Murray, current chair and former vice-chair of the Nato Innovation Fund (NIF), to take stock of how the experiment is playing out.Since becoming operational in 2023, the fund has faced significant scrutiny. Four of its original founding partners have left, one of them pursuing legal action over a compensation dispute, while former chair Klaus Hommels stepped into a new role last September following questions around potential conflicts of interest.Amy and Fiona discuss these controversies, as well as what the fund is actively looking to invest in today, the structural challenges facing Europe’s defence tech startups and what still needs to change if European nations are to build long-term technological resilience in an increasingly unstable world. 

Markus Villig, founder and CEO of ride-hailing unicorn Bolt, shares insights from scaling his company across Europe and Africa. He warns that Europe risks a 'disaster' by neglecting self-driving car and physical AI development. Markus highlights the need for a unified capital market to nurture startups and discusses the challenges facing new entrants in ride-hailing. He also delves into his role on Klarna's board, emphasizing the importance of engaging with policymakers and fostering innovation in Estonia's defense tech landscape.

Kanishka Narayan, the UK’s AI minister, joins us on the Sifted Podcast hot off the heels of the big reveal of UK chancellor Rachel Reeves’ latest budget, which announced some fairly positive moves for Britain’s entrepreneurs — as Amy and Kanishka discuss in this episode.In his role as AI minister — which he’s had for just two months — Kanishka holds some pretty chunky responsibilities: including ensuring that the UK seizes upon the opportunities AI presents to us — and leverages tech for growth.In this episode of the Sifted Podcast, Amy asks Kanishka if he thinks the UK is moving fast enough on adopting and regulating AI, what the biggest risks the technology poses to the nation are and where he thinks the government should put its resources to have the most positive impact on the tech sector.

In this discussion, Carl Pei, the visionary founder of Nothing and co-founder of OnePlus, dives into the future of hardware and AI. He reveals insights from his time in China, emphasizing the importance of learning rapid prototyping. Pei outlines Nothing's innovative approach to creating personalized devices and the strategic need for smartphones in building their ecosystem. He also shares his enthusiasm for India’s booming market and the opportunities it offers, while addressing the challenges European startups face in hardware innovation.

It’s that time of year again: Atomico’s State of European Tech report has landed.In case you don't have the time to wade through its mammoth 183 charts, this week host Amy Lewin is joined by senior reporter Miriam Partington to bring you the report’s most surprising findings, with a focus on talent.And it paints a rosy picture: respondents say it’s getting easier to recruit and retain top-tier talent in Europe, and the continent’s pool of senior tech tech employees has grown faster than the US over the last decade.But do founders actually feel that shift on the ground? And how much appetite is there to finally fix Europe’s long-lamented market fragmentation? And why, a decade on, is the gender funding gap showing no signs of closing?Read Atomico’s report, here: https://www.stateofeuropeantech.com/Read our top highlights, here: https://sifted.eu/articles/state-european-tech-report-2025Read about the Mistral and SAP partnerships, here: https://sifted.eu/articles/france-germany-partnership-mistral-sapRead about why VCs are ditching the boardroom for operator life, here: https://sifted.eu/articles/vcs-becoming-operatorsIf you would like to sponsor the podcast, please email commercial@sifted.eu

In a lively discussion, Alex Depledge, a serial entrepreneur and advisor to UK Chancellor Rachel Reeves, tackles the urgent issues facing the UK's tech sector. She highlights the troubling trend of startup talent leaving the UK and discusses potential strategies to boost late-stage capital, including leveraging pension funds. Alex emphasizes the need for government to engage directly with founders and offers insights on how to rectify the capital gaps that hinder scale-ups. Her sharp observations on regulations and the importance of fostering innovation light the way for a thriving startup ecosystem.

Jonny Sinclair, head of research at Sifted, and Kai Nicol-Schwarz, senior reporter, dive into Europe's AI landscape. They reveal that funding for AI startups is booming, with €8.9 billion this year alone. Discussing France's AI hub status, they question whether it has plateaued against the rising prominence of London. The duo also highlights the dismal success rate of GenAI pilots and the critical role of specialized roles like forward-deployed engineers in ensuring effective deployment. They conclude with a debate on the potential AI bubble and its impact on market dynamics.

Erin Platts, the former UK CEO at Silicon Valley Bank and now CEO of Octopus Ventures, shares her insights on a tumultuous period in banking. She details the weekend of the SVB collapse and the frantic efforts to safeguard startups' funds. Erin discusses the challenges faced by Octopus Titan and her strategies for revitalizing its performance. She emphasizes the need for diverse capital sources and reflects on the startup community's support during crises. Erin also advocates for a pro-innovation government stance to enhance the UK's capital markets.

Luciana Lixandru, a partner at Sequoia Capital and architect of its European expansion, shares her insights on building $100bn companies in Europe. She discusses the exciting potential of startups like Trade Republic and Revolut in fintech and AI. Luciana emphasizes the need for strong founder-market fit and agility in execution while navigating high valuations. She highlights London's emergence as a central hub for AI and fintech, and warns about Europe's market fragmentation being a significant challenge that startups must overcome.