📬 EWVC April Newsletter: AI & Capital: The Power Surge and the $600B Question
Venture capital is betting big on AI, but the future hinges on whether (many of) these investments will pay off. Will this technology transform or challenge the global economic landscape?
Quote of the day: "AI will be a greater revolution for humanity than electricity. However, unlike for electricity, we still have a relatively limited understanding of how artificial intelligence actually works." — Zuzanna Stamirowska, Founder and CEO of Pathway
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Are we in one of the most exciting times to be alive in history? The disruption potential is even larger than that of mobile or the internet. There is no doubt that the global AI market is surging, reshaping not just how we live and work - but also how VC allocates capital, how policymakers regulate technology, and how startups are valued.
Despite market fluctuations and tight liquidity conditions, AI remains a dominant catalyst in venture markets. As of January 2025, global VC funding totaled $26 billion, with $5.7 billion (22%) going to AI-related startups. This momentum builds on the $110 billion invested in AI throughout 2024 - up 62% YoY (according to TechCrunch and Startups Magazine).
But here's the tension: Sequoia’s David Cahn frames it as "AI’s $600B Question"—a reference to the annual revenue that would be needed to rationalize today’s infrastructure investments across chips, data centers, and energy. The bet is that AI will become so foundational that it generates this kind of economic return. But the gap between cost and realized value is still massive.
So the question isn’t just how much we’re investing—it’s what kind of future we’re underwriting. Are we building systems that serve the broadest set of humans? Are we thinking beyond profit - toward durability, fairness, and long-term resilience?
“AI will be a greater revolution for humanity than electricity. However, unlike for electricity, we still have a relatively limited understanding of how artificial intelligence actually works. There’s a good chance that the transformer architecture—the 'T' in GPT—is not the final word in the AI saga. New architectures have the potential to create trillion-dollar markets. By deepening our understanding of the underlying dynamics in large language models, we may be able to advance human progress by proverbial light years.” — Zuzanna Stamirowska, Founder and CEO of Pathway.
The truth is, we probably don’t know yet. The coming year will be pivotal in defining the trajectory of AI over the next decade.
Mira Murati believes that, while AI capabilities are becoming essential, there are key gaps to address. Especially regarding the knowledge of how these systems are trained. This expertise is concentrated within the top research labs, limiting both the public discourse on AI and people's abilities to use AI effectively. She plans to address this with her new venture.
“I started Thinking Machines Lab alongside a remarkable team of scientists, engineers, and builders. We're building three things: - Helping people adapt AI systems to work for their specific needs - Developing strong foundations to build more capable AI systems - Fostering a culture of open science that helps the whole field understand and improve these systems Our goal is simple, advance AI by making it broadly useful and understandable through solid foundations, open science, and practical applications”. — Mira Murati, Co-Founder and CEO of Thinking Machines Lab, Ex-CTO of OpenAI on X.
🌍 Europe’s Position in AI: The Race to Strategic Player
In Q1 2025, European tech startups raised €11.6B, a slight dip from €11.8B in Q1 2024.
AI startups accounted for €2.9B of that—+52% YoY from €1.9B.
Meanwhile, the 🇺🇸 U.S. remains dominant with 74% of global AI VC, led by power players betting heavily on foundational models and infra tools.
European Regulation: A Short Note on AI Redtape ⚖️
The regulatory climate in Europe is shifting from obstacle to driver. These past few months, the European Commission has taken a step forward and began promoting de-regulation to foster European competitiveness. Regarding AI, the EU AI Act, passed in 2024, now shapes due diligence, especially for high-risk AI systems in health, finance, and hiring. The impact and future use of this piece of regulation is still to be determined.
“Today, one-fourth of all money invested in construction projects is spent on correcting errors. In an industry worth over €12 trillion annually, this leads not only to massive financial losses but also to hundreds of millions of tons of unnecessary waste every year.
Having spent over a decade in construction, I saw these inefficiencies up close – and at one point, my frustration hit the roof. There had to be a better way. I decided to listen, learn, and read everything I could get my hands on about AI, and then something clicked.
That’s when I founded AI-BOB, with the vision to prevent building errors before they even occur. The response we’ve received, both in Sweden and internationally, shows that this kind of innovation not only has the potential for huge impact but is also truly long-awaited.
My hope is that more women feel that spark of curiosity, that sense of urgency, to explore AI as a tool to solve the real-world problems they care about.”
“At Dexory, we're transforming warehouse operations through AI-powered robotics, providing real-time visibility and data-driven insights that enhance efficiency and safety. As a woman leading in this space, I believe our diverse perspectives are crucial in shaping technology that serves everyone. Our journey underscores the importance of inclusivity in innovation, and I'm proud to be part of a movement where women are not just participating in AI advancements but are at the forefront of driving meaningful change.”
“AI gives us the unique opportunity to leapfrog outdated systems and address longstanding neglected areas and markets —like women’s health. It compresses both discovery and its integration into care: insights that once took a decade of clinical research—and another to reach everyday medical practice—can now be generated and embedded into tools used by clinicians all across the world, and not just in top-tier research hospitals.” — Raphaelle Taub, Co-Founder and CEO of Matricis AI
AI is absorbing more VC than ever: 22% of global VC in January 2025 went to AI-sustaining momentum after a $110B year in 2024.
Europe is finding its AI niche: While the U.S. leads in foundational models, Europe is dominating real-world AI applications.
Regulation is now a value driver: Startups with ethical guardrails and compliance baked in are more fundable than ever.
Investors are shifting their lens: From speed and hype to profitability, safety, and productized value.
Want to learn more? Check the articles below! 💡
The state of gender diversity in European startups: Female Innovation Index 2025. Female founders across Europe are embracing AI-driven opportunities and doubling down on tackling the toughest challenges– Tech.eu
AI’s Missing Link: The Gender Gap in the Talent Pool – Interface EU
Aqemia, a 🇫🇷 Paris-based biotech that uses AI to fast-track drug discovery and design, secured $68 million across two fundraising rounds, bringing its total funding to over $100 million, co-founder: Emmanuelle Martiano Rolland
Thasunda has recently become the First Female CEO of a Trillion-Dollar Financial Giant. Current CEO of TIAA and a mother of four, she rose from humble beginnings to managing over $1 trillion in assets. One of the few Black women to lead a Fortune 100 company.
Lucy Guo founded and runs Passes, a platform for creators to share advice and more. The company raised $50 million from investors from 2022 to 2024. Prior to Passes, Guo cofounded artificial intelligence company Scale AI with Alexandr Wang in 2016; she left the company in 2018. Guo made Forbes' 30 Under 30 list in 2018.
Volution launched $100m 🇬🇧 UK fund in partnership with leading Japanese venture capital investors, SBI Investment. Through its new fund, Volution aims to bridge this gap by backing businesses that have already established strong revenue streams but require additional capital to expand.
🇩🇪 Revent II €100M fund to invest in 👥 people and the 🌏 planet!
Revent has just announced the closing of their new €100M fund to back founders who “don’t just want to build a big company, but also want to make sure the company they’re building is important”. They will back European startups in climate, health, and 'empowerment'.
Founded in 2020 by Dayna Grayson and Rachel Holt., Construct’s successful fundraise reflects growing investor interest in defense tech amid geopolitical tensions, and the revitalization of foundational industries - manufacturing, logistics, mobility, critical infrastructure, and defense - sectors long neglected, forgotten, and sacrificed.
At 🇪🇺 #EICSummit25, Women in Venture Capital met with Commissioner for Startups, Research, and Innovation, Ekaterina Zaharieva, to discuss the current state and the future of Venture Capital and diversity in 🇪🇺 Europe.
The solution is clear: We need to unlock European Pension Fund Investments into Fund of Funds and Venture Capital. We can build a strong and healthy tech supported economy by matching the right funding vehicles within Europe!
We are thrilled and super proud for the Bootstrap Europe team ringing the bell at the London Stock Exchange to celebrate the amazing Invest in Women Taskforce and Bootstrap 4F's appointment as the Fund of Funds manager for the £250M initiative to back high-performing, female-led venture funds across the 🇬🇧 UK! As partners of this groundbreaking project, we look forward to this huge milestone in our work for the UK market and for all the female GPs and female founders who are delivering amazing financial and impact results!
