European Startups

Japanese investment in European tech startups is surging, driven by confidence in Europe’s mature ecosystem and a strategic shift away from Silicon Valley. Since 2019, investments have exceeded 33 billion euros, a significant increase compared to the preceding years. Japanese corporations are particularly interested in deep tech ventures, providing capital and expertise in manufacturing and supply chains. While challenges like language barriers exist, the trend reflects a broader geopolitical strategy and the appeal of European entrepreneurs with experience in multinational corporations.

While the US dominates AI funding, Europe sees potential in practical AI applications. European startups face challenges including conservative investors and market fragmentation but have advantages in talent acquisition. Companies like Mistral, Synthesia, and ElevenLabs (an AI voice generation startup) are building specialized AI solutions, some developing their own LLMs. The key to success lies in rapid iteration, securing capital, and fostering a more ambitious mindset among European entrepreneurs. Building independent AI infrastructure is also crucial.