Hey, dear reader!
Last week, Mistral announced a new flagship model, which they say is the strongest open model outside China. It's a big deal for AI in Europe, obviously, and, as Kevin from The Office said, it's just nice to win one.
Judging by the headlines in recent months, Europe seems to have two moods: "we're so back" and "it's so over". So which one is it for tech and startups?
While looking for an answer, I browsed through some recent reports (incl. the recent Startup Monitor) that track the German and, more broadly, European startup scene.
These reports are usually a parade of numbers that use two figures in particular as a measure of success: the number of new startups and the amount of VC inflow.
Let's start with new startups: a figure you see in a big, bold font everywhere. Does it really matter how many startups were added in a given period? I'd much rather know how many of them survive the valley of death, the stretch between early funding and real growth, and go on to compete globally and become category leaders.
Without a survival rate, the birth rate shows only half of the picture. Yes, 2026 added many new startups but it doesn't say how many of them make it.
Now, VC investment. In Germany, startups raised €8B so far, already more than in all of 2025 (€7.5B), with €12B expected by the end of the year. A staggering increase, but let's look at what's actually happening.
The picture differs by sector. Defence is on fire: Europe has raised €4.6B so far this year, almost three times as much as in all of last year. Germany accounts for €3.0B of it, with mega rounds from Helsing (€1.6B), Quantum Systems (€1B) and Stark (€500M).
In AI, Europe is at €27.2B so far this year, up from €20.4B, a growth of about a third. Germany's share is €5.7B, almost double last year, but still only a fifth of the European total (compared to two thirds in defence). The US, meanwhile, has already invested over €307B, more than double its entire 2025 figure and over ten times Europe's total.
That said, overall the money flows into fewer startups. In Germany, rounds are down about a quarter from 2021, and early-stage rounds are stagnating as business angels hold back. Fewer startups raise, but those who do raise bigger rounds.
And who writes those big cheques? Increasingly, US investors: they supply 39% of the volume in German startups, as much as at the 2021 peak. German investors are down to 23% and other European ones to 28%. Local funds are often simply too small for mega rounds.
So, are we back? We've moved much further away from the "it's so over" end, but I don't think we're quite back yet. Yes, we see growth in many areas. But we need more speed in attracting capital, opening companies and expanding within the continent.
The next months will be pivotal for Europe. If EU Inc is adopted, it'd be the biggest push for Europe's founders in years. If not, well, we'll still figure it out.
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🗓️ Startup Events
Handpicked for this week.
🤖 AI Everywhere
Tuesday, October 13
Revenue for Breakfast #1 (English): Learn how automation and AI are turning GTM engineering into the new sales engine, at the first Hamburg edition of this breakfast format.
Thursday, October 15
Claude Code Meetup (English): Swap tips and projects with other Claude users at a casual evening meetup, with speakers still to be announced.
Google AI Day × ambition (German): Learn how AI is changing marketing and business strategy, with two tracks for executives and practitioners, sessions from Google and a networking dinner.
🧑💻 Tech Bite
Wednesday, October 14
robotics & physical ai CLUB (English): Bring your hardware, or just yourself, and meet Hamburg's robotics and physical AI builders.
Friday-Saturday, October 16-17
DevFest Hamburg (English): Get two days of sessions, workshops and showcases on mobile, web and cloud, hosted by the Google Developer Groups.
Sunday, October 18
agentic coffee (English): Talk about building with AI agents over Sunday coffee, with no talks and no demos, just an open round on what you learned lately.
🔨 Startup 101
Tuesday, October 13
Founders Toolbox: Taxes for Startups (German): Learn the tax basics every startup should know, from setup questions to common pitfalls, in a practical founders session.
Wednesday, October 14
Lead Generation Workshop (English): Build a structured customer acquisition strategy and sharpen your sales pitch in a full-day workshop with facilitators and peers.
Friday, October 16
build fridays (English): Work on your own startup alongside other founders doing the same, and end the week with something shipped.
✨ Get Inspired
Wednesday, October 14
Hamburg Global Innovators Circle Meetup (English): Swap stories and life hacks for building a life in Germany, over drinks with an international crowd and no agenda.
Art & Innovators (English): Explore artworks made by deeptech and life sciences professionals at a vernissage where scientists, engineers and founders step into the studio.
Thursday, October 15
Körber Start-Hub Final Pitch (German): Watch six teams under 30 pitch their society-focused startups in three minutes each, with prize money for one winner.
Friday, October 16
Founders Padel (English): Play padel with founders, entrepreneurs and investors for real connections on and off the court, with all levels welcome.
Saturday, October 17
Founders Court x Founders Running Club (English): Run an easy 5K with founders and startup people, then stay for coffee and networking.
📍Monthly Highlights
Monday, October 26
Co-working Day (English): Work alongside founders and operators from 10 to 18, start with a round of introductions and get fresh eyes on whatever you are stuck on.
Wednesday, October 28
Grok Bot Meetup Hamburg #1 (English): Meet people building bots, from work automation to personal assistants, and trade setups over pizza, community talks and live demos.
Thursday, October 29
Climate Coffee (English): Meet people building, funding and supporting climate solutions over coffee, from founders to investors and researchers.
Wednesday, November 4
#3 Hamburg Hardware Afterwork (English/German): Meet people who build physical products, from founders and engineers to makers and suppliers, over craft beer and shuffleboard.
Women of SaaS Hamburg: Reshape Your Work (English): Hear women from the SaaS world on how AI is changing their work and visibility, with a fireside chat, Q&A and networking.
📣 Open Calls
Startup grants, programs, and opportunities.
SET Award 2027 — For climate and energy-transition startups founded in 2016 or later, with a proof of concept and a client, partner or prototype. €10,000 equity-free prize money per category, no fee found, global entry in English. Deadline: November 30.
Deutscher Gründerpreis 2027 — For startups founded in 2024 or 2025 with at least 3 full-time employees. Germany's best-known founder award: finalists get business consulting and two years of mentoring, no fee found. Deadline: November 15.
💼 Job Picks
3 open roles worth a look this week.
Deployment Engineer at GoodBytz, a robotics startup building robotic kitchens.
Senior Account Executive at Secjur, a SaaS startup automating compliance with AI.
Solution Engineer at Buildlinx, a startup making modular software that cuts energy costs and CO2 in commercial buildings.
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That’s a wrap!
Check out the tune of the week from the found playlist
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See you next week,
Kyrylo from found