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How good is Europe at creating startup unicorns?
Europe’s Unicorn Rate Matches the US, the $3bn startup without a product, and more...
SearchVentures
March 12, 2025
Europe Matches the US in Unicorn Efficiency
European startups are just as effective at turning funding into billion-dollar valuations despite receiving less attention.
What is driving this parity?
This Week’s Trends
Europe’s unicorn rate matches the US
The $3bn startup unicorn without a product
Klarna to file IPO next week and more
Read Time 3 minutes
The Startup Trend
Europe Matches the US in Unicorn Efficiency
The data above shows the percentage of startups that reach unicorn status at each funding level is nearly identical in Europe and the US.
> Europe’s startup ecosystem is just as effective as the US in creating unicorns, proving that funding efficiency (not geography) drives billion-dollar success.
> This challenges the notion that the US has a structural advantage over Europe when it comes to scaling companies.
💡 It’s important to note that the data is based on private valuations and doesn’t account for differences in IPO outcomes after public listing.
Startup Feature
Poolside AI Hits $3Bn Valuation Without a Product
Co-Founders Jason Warner and Eiso Kant
Poolside AI, a Paris-based startup, has raised $500 million at a $3 billion valuation without a product on the market. Founded in 2023 by former GitHub CTO Jason Warner and developer tools entrepreneur Eiso Kant, the startup is building AI capable of writing and optimizing code autonomously. Investors including Bain Capital Ventures, Nvidia, and DST Global are betting it will transform software development.
Replacing Coders With AI
Poolside AI is not building another coding assistant. Unlike GitHub Copilot, which helps developers write code, Poolside is working toward AI that can handle full software development cycles. Its system is designed to independently generate applications, fix bugs, and improve legacy code without human oversight.
“We are not just building AI to assist developers. We are building AI that can replace certain aspects of coding entirely.”
The startup has been training its models across multiple programming languages, aiming to make AI-driven software development scalable and cost-efficient. If successful, this could significantly reduce the time and expense of building and maintaining software.
Betting on a Product Before Launch
Poolside AI’s $500 million Series B was led by Bain Capital Ventures, with participation from Nvidia, StepStone Group, Citi Ventures, and HSBC Ventures. This brings its total funding to $626 million, making it one of Europe’s most well-funded AI startups.
Investors are betting that AI will transform software engineering in the same way automation reshaped manufacturing. While current AI tools assist programmers, Poolside AI aims to take over tasks traditionally handled by engineers.
“If we get this right, software development will look completely different in five years.”
With significant funding and backing from top investors, Poolside AI is preparing for its first product release. If it delivers on its vision, it could disrupt the software industry and redefine how code is written, tested, and deployed.
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Headline News
This Week In Startups ✍️
Founders
> Klarna aims to raise at least $1 bn in an initial public offering expected to be filed publicly as soon as next week, according to reports.
> YAi, a UK based AI content creation company has raised £250,000 in Seed Enterprise Investment Scheme (SEIS) funding from Jenson Ventures.
> Northvolt has officially filed for one of the biggest bankruptcies in Sweden, bringing its long-running financial drama to a head.
Investors & VCs
> Araya Ventures’ solo GP closes in on first fund of £20 million. The firm has its own angel academy, which trains women to become investors
> Thoma Bravo, a US private equity firm, has closed a €1.8 billion fund to target European software companies.
> Fund F, an Austrian VC firm closes €28 million fund to back gender-diverse fouding teams, surpassing its initial target of €20 million.
Sponsored by Mode Mobile
This tech company grew 32,481%..
No, it's not Nvidia. It's Mode Mobile, 2023’s fastest-growing software company according to Deloitte.
They’ve just been granted their Nasdaq stock ticker, and you can still invest at just $0.26/share.
*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.
Cheers,
Odin Lund & Hari Mohandas
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