Ben’s List 20

As digital fraud losses surge past €4.2 billion annually across Europe, the continent’s identity verification sector is attracting unprecedented investor attention. Romanian fraud prevention specialist TMT ID has secured €34 million in growth funding from BGF, marking one of the largest fraud prevention investments in Eastern Europe this year. The Bucharest-based company, which provides AI-powered identity verification and fraud detection solutions, will use the capital to accelerate expansion across European markets whilst bolstering its technology platform to address the continent’s mounting digital trust challenges. BGF backs fraud prevention technology amid rising digital threats Business Growth Fund’s investment in TMT ID reflects growing institutional confidence in European fraud prevention technologies. The London-based growth capital firm, which typically invests £2-10 million in scaling businesses, sees significant opportunity in the identity verification sector as regulatory pressure intensifies across EU markets. “The fraud prevention market in Europe is experiencing a perfect storm of regulatory demand and technological innovation,” said a BGF spokesperson regarding the investment. “TMT ID’s proven track record in complex markets like Romania positions them uniquely for pan-European expansion.” BGF’s investment thesis centres on TMT ID’s proprietary AI algorithms, which can process over 100,000 identity verifications per hour whilst maintaining compliance with GDPR and emerging AI Act requirements. This technical capability becomes crucial as European financial services face stricter KYC obligations under the upcoming AML6 directive. The funding round positions TMT ID alongside other European fraud prevention unicorns like London’s Onfido and Berlin’s IDnow, both of which have secured significant US investment despite their European origins. Romanian fintech eyes Western European expansion strategy TMT ID’s expansion strategy focuses on Germany, France, and the Netherlands, where fraud losses have increased 23% year-on-year according to European Central Bank data. The company’s technology currently processes over 2 million identity checks monthly for Romanian banks and telecommunications companies. “We’re seeing massive demand from Western European enterprises who need fraud prevention solutions that understand both local regulations and cross-border criminal patterns,” explained TMT ID CEO regarding the company’s growth trajectory. The Romanian company differentiates itself through multi-language support and deep understanding of Eastern European fraud patterns, which increasingly impact Western markets as criminal networks become more sophisticated. This regional expertise proves valuable as European banks struggle with cross-border fraud detection. TMT ID’s client roster includes major Romanian financial institutions and telecommunications providers, with the company reporting 150% revenue growth over the past 18 months. The fresh capital will fund technology development, regulatory compliance infrastructure, and strategic hires across key European markets. This investment signals broader confidence in Eastern European fintech capabilities, following similar growth rounds for Polish payment processor PayU and Czech Republic’s Bohemia Interactive. European fraud prevention remains a strategic priority as digital transformation accelerates across traditional industries.

Europe’s defence technology sector is experiencing unprecedented momentum as geopolitical tensions reshape investment priorities across the continent. Traditional venture capital firms are pivoting towards dual-use technologies, whilst specialised funds emerge to capitalise on the estimated €500 billion European defence modernisation market over the next decade. London-based Keen Venture Partners has secured €150 million for what it claims is Europe’s largest dedicated DefenceTech fund, marking a significant milestone in the maturation of European military technology investment. The fund received backing from the European Investment Fund alongside several undisclosed institutional investors, positioning Keen as a major player in the rapidly expanding sector. DefenceTech fund raising reflects strategic European priorities The European Investment Fund’s participation signals institutional recognition of defence technology as a strategic priority for European autonomy. Unlike traditional Silicon Valley defence investors focused on large-scale contracts, Keen’s thesis centres on dual-use technologies that serve both civilian and military applications—a distinctly European approach that navigates complex regulatory frameworks whilst maximising commercial potential. “Modern battlefield requirements are evolving faster than traditional defence procurement cycles can accommodate,” explains the investment team. “We’re backing founders who understand that today’s conflicts demand software-first solutions, autonomous systems, and cyber resilience capabilities that can be deployed rapidly across multiple domains.” This €150 million represents more than double the typical European defence-focused fund, reflecting both increased LP appetite and the scale of opportunities emerging across the continent. The fund’s structure accommodates longer development cycles typical of defence applications whilst maintaining the growth trajectory expectations of institutional investors. European DefenceTech ecosystem gains institutional momentum Keen’s strategy targets startups developing autonomous systems, cybersecurity infrastructure, satellite communications, and advanced materials—sectors where European companies increasingly compete with established US and Israeli defence contractors. The fund’s European focus addresses a critical gap in defence technology financing, where American investors often require US-centric business models that limit European market penetration. The timing proves strategic as NATO’s Defence Innovation Accelerator ramps up activity and member states increase defence spending commitments to 2% of GDP. European governments are actively seeking indigenous alternatives to reduce dependence on non-EU defence suppliers, creating substantial market opportunities for portfolio companies that can navigate complex certification processes. Portfolio construction will emphasise companies with proven dual-use applications, regulatory compliance expertise, and scalable technologies adaptable to different European markets. This approach differentiates Keen from generalist VCs attempting to add defence exposure through occasional investments in the sector. This fund launch reinforces Europe’s emergence as a serious player in defence technology innovation, moving beyond traditional aerospace and shipbuilding towards the software-defined capabilities that will determine future military effectiveness. For European defence startups, access to dedicated capital with sector expertise removes a significant barrier to scaling within the continent’s complex regulatory and procurement environment.

The European AI customer support market is experiencing unprecedented consolidation, with traditional helpdesk solutions rapidly giving way to intelligent agent platforms. Leading this transformation is GetVocal, which has secured €24 million in Series A funding led by Creandum to accelerate its AI-powered customer support platform across European markets. This funding round positions GetVocal among the better-capitalised European AI customer support startups, reflecting growing investor confidence in the sector’s potential to reshape how businesses handle customer interactions. The round’s timing coincides with increased enterprise demand for AI solutions that can handle complex customer queries whilst maintaining the personalised service European customers expect. Creandum leads AI customer support investment surge Creandum’s investment in GetVocal reflects the Stockholm-based VC’s systematic approach to backing European B2B software companies with strong product-market fit. The firm, known for its early investments in Spotify and Klarna, sees particular value in GetVocal’s ability to navigate the complex regulatory landscape that governs customer data across European markets. “GetVocal has demonstrated exceptional understanding of European enterprise needs, particularly around data sovereignty and GDPR compliance,” said a Creandum partner. “Their platform doesn’t just automate customer support—it enhances the quality of customer interactions whilst ensuring full regulatory compliance across all EU jurisdictions.” The investment aligns with broader European VC interest in AI infrastructure companies that can serve fragmented European markets effectively. Unlike their Silicon Valley counterparts, European AI startups must navigate 27 different regulatory frameworks, making compliance-first platforms like GetVocal particularly attractive to enterprise customers. Beyond capital, Creandum brings valuable go-to-market expertise across Nordic and broader European markets, where enterprise software adoption patterns differ significantly from US markets. This strategic partnership positions GetVocal to compete effectively against both established players like Zendesk and emerging AI-first competitors such as Intercom’s Resolution Bot. European AI compliance creates market opportunity GetVocal’s platform addresses a critical gap in the European customer support market: AI-powered automation that maintains compliance with stringent European data protection regulations. The company’s technology processes customer interactions in real-time whilst ensuring all data remains within appropriate geographical boundaries—a crucial requirement for European enterprises. The startup plans to deploy the Series A capital primarily across product development and European market expansion, with particular focus on DACH and Benelux regions where enterprise AI adoption is accelerating. Current metrics indicate strong traction, though specific customer numbers remain undisclosed. “European businesses need AI customer support solutions built specifically for European requirements,” explains GetVocal’s CEO. “We’re not adapting a US platform for European markets—we’re building European-first technology that happens to compete globally.” This European-centric approach extends to GetVocal’s multilingual capabilities, supporting seamless customer interactions across major European languages whilst maintaining context and nuance that generic AI platforms often miss. The company’s technology stack is optimised for European cloud infrastructure, ensuring low latency and high availability across the continent. GetVocal’s Series A success signals growing European confidence in homegrown AI solutions, particularly those addressing specific regulatory and cultural requirements that global platforms struggle to meet effectively. As European enterprises increasingly prioritise data sovereignty, startups like GetVocal are well-positioned to capture significant market share from incumbent providers.