The Dealflow by Founders Capital - Edition 3

Key News and Trends

​No more watching from the sidelines, Europe is here to build. Project Europe is a new $10 million fund aiming to support young European entrepreneurs aged 18 to 25 by providing €200,000 investments to build tech startups. Spearheaded by podcaster-turned-investor Harry Stebbings, the initiative seeks to counteract Europe's "brain drain" to the US and revitalise the continent's innovation landscape. Over 120 prominent European tech founders, including leaders from Shopify, Klarna, and Mistral, are backing the fund, offering both capital and mentorship. Unlike the U.S.-based Thiel Fellowship, which provides grants, Project Europe will take a 6.66% equity stake in the startups it invests in. Read more here.

AI may be smart, but keeping it safe requires old-school security. Anthropic is urging the U.S. government to strengthen AI security, advocating for industry collaboration to protect frontier AI labs. In a recent submission to the White House’s OSTP, the company proposed working with U.S. intelligence agencies to safeguard proprietary AI advancements. Meanwhile, Anthropic’s annualised revenue has surged 40% to $1.4 billion, as its AI solutions continue to gain traction. Read more here.

Big Tech is tripling down on nuclear, because AI won’t power itself. ​In a significant move to bolster global energy sustainability, tech giants Amazon, Google, and Meta have pledged to triple nuclear power capacity by 2050. Interest in small modular reactors (SMRs) is growing, with technology groups signing dozens of agreements to explore their potential. However, they still face significant technical, regulatory, and financial challenges. Read more here.

Founder’s Take: Europe’s Startup Revolution Is Overdue

Project Europe is exactly what the European startup scene has been missing. The reality is that America has outshone Europe for some time when it comes to building world-leading startups. The difference in success and scale isn’t due to a lack of talent, but rather the unequal platform available to European versus American entrepreneurs. Project Europe is a step toward fixing that, ensuring Europe’s brightest entrepreneurs have the backing they need to build, scale, and compete on a global stage.

Top Venture Deals

Celestial AI – $250M Series C1 (Fidelity Management and Research)

• Celestial AI, a Santa Clara-based startup developing light-based data transfer technology to enhance AI data center performance and energy efficiency, has raised $250 million at a $2.5 billion valuation. The round included participation from BlackRock, Maverick Silicon, Tiger Global Management, and Lip-Bu Tan, alongside returning investors AMD Ventures, Koch Disruptive Technologies, Temasek, Xora Innovation, Porsche Automobil Holding, and The Engine Ventures. This latest funding brings Celestial AI’s total raised to over $515 million. Read more here. 

Reflection AI – $105M Series A (Lightspeed Venture Partners, CRV)

• The superintelligence startup founded by former DeepMind researchers, has raised $105 million in Series A funding to advance AI-driven autonomous coding systems. The round was co-led by Lightspeed Venture Partners and CRV, with participation from Sequoia Capital, which previously backed the company at the seed stage. Read more here.

4C Medical – $175M Series D (Boston Scientific)

• 4C Medical, a Maple Grove, MN-based company developing minimally invasive treatments for structural heart diseases, has raised $175 million in Series D funding led by Boston Scientific. The investment will accelerate the AltaValve™ System, its next-gen transcatheter mitral valve replacement (TMVR) technology, and support the ongoing ATLAS trial in the U.S. and Europe. AltaValve aims to provide a surgical alternative for mitral regurgitation (MR), a condition affecting nearly 10% of Americans over 75. Read more here.

Upcoming Public Offerings

Gemini

• The cryptocurrency exchange backed by the billionaire Winklevoss twins has filed confidentially for an initial public offering. The company is collaborating with Goldman Sachs and Citigroup on the offering, aiming to go public as soon as this year. Backers include Nyca Partners and Morgan Creek. Read more here.

Hinge Health

• ​Hinge Health, a digital musculoskeletal (MSK) care provider, has filed for an initial public offering in the United States. Founded in 2014, the company has raised approximately $828 million over its funding rounds. In 2024, Hinge Health reported revenues of $390 million, reflecting a 33% increase from the previous year. Read more here.

Project Europe is an exciting prospect for Europe’s young entrepreneurs, signalling a shift toward greater access to funding and opportunity. The momentum is here, and the only question now is: who’s ready to seize it?

See you in the next edition,
Sam Scott and the Founders Capital Team