Europe should be known for BottleCap AI, not bottle cap memes. With its tongue-in-cheek name, this Prague-based AI startup is one of the teams that VCs think you should know. It is not that European startups never cut through the noise — Lovable and Mistral AI are proof of it. But there are many more that don’t have nine digits in annual recurring revenue yet and that insiders are still tracking very closely. That’s where this list comes in. Over the last few weeks, we asked investors at some of Europe’s best known venture funds to recommend two startups each: one from their portfolio (because they liked the startup well enough to invest) and one outside of it (because they are the startup experts but can’t invest in them all). We also threw in a few picks of our own. From pre-launch to unicorn, these startups are at different stages in their journey, and from different sectors. Due to our methodology, they may not reflect where the region’s hottest hubs are, but they do reflect how deep tech talent could help Europe play its own cards 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 has gone from pariah to trending, particularly in Europe, where the war in Ukraine was a wake-up call for armies to modernize. Alta Ares’ interceptors answer a need for cheaper solutions to detect and fight drone incursions. Techcrunch event San Francisco, CA | October 13-15, 2026 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: SMBs can be a lucrative segment for fintech companies; business owners are willing to spend at least some money to save 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: Companies are still scrambling to replace SEO with generative engine optimization (GEO) — but this Disrupt NY 2016 alum has already embraced the shift. Botify has competitors in its new field, such as Otterly.AI and Profound, but also big customers, from Macy’s to The New York Times. 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: With a founding trio that includes an entrepreneur who sold his previous company to Meta and two AI researchers, BottleCap adopted a dual approach. The startup is building its own models and releasing apps built on top of them, including Pulse, an AI-powered news app. 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: Cailabs is based on advanced research on the science of light, which it now applies to faster and more robust data transmission. Backed by public and private investors, it plans to deploy 50 optical ground stations to support growing demand for laser communications with satellites. Cailabs’ turnkey optical ground station.Image Credits:Cailabs Cala Recommended by TechCrunch’s Anna Heim. What it does: Knowledge graph for AI agents. Why it’s worth watching: Cala plans to build the knowledge layer that AI agents are missing. Its founder is Elisenda Bou-Balust, a high-profile Spanish entrepreneur and AI expert who sold her previous 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: Wind and solar energy are inherently variable. Flower leverages AI and battery energy storage systems to make their use more predictable. This Swedish company also recently raised over $60 million in bonds to keep on 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, focuses on helping enterprises draw insights from their data. The company just emerged from stealth in February, but it is already valued at <head>.4 billion following a $255 million Series A. Gradium Recommended by Jonathan Userovici, general partner, Headline. What it does: AI voice models. Why it’s worth watching: Gradium’s AI models can be used for real-time text-to-speech that gives AI agents a voice in multiple languages. A spinout of French AI lab Kyutai, this ElevenLabs challenger raised a $70 million seed round of its own. HappyRobot Recommended by Pablo Ventura, general partner, Kfund. What it does: AI agents for complex use cases
