START Summit 2023

Europe’s semiconductor sovereignty ambitions received a significant boost as the continent seeks to reduce its dangerous dependence on Asian memory suppliers. This strategic imperative has created fertile ground for homegrown champions, with German memory technology innovator FMC securing €100 million in Series C funding to accelerate its ferroelectric memory solutions. The investment signals growing European confidence in backing deep-tech startups that address critical supply chain vulnerabilities exposed during recent global disruptions. Memory tech funding attracts heavyweight European VCs HV Capital and DeepTech & Climate Fonds (DTCF) co-led this substantial financing round, bringing together two of Europe’s most sophisticated deep-tech investors. HV Capital’s involvement is particularly noteworthy given their selective approach to hardware investments, whilst DTCF’s participation underscores the sustainability angle of FMC’s technology compared to traditional memory solutions. The investor syndicate’s European composition reflects a broader trend of EU-based funds prioritising strategic autonomy investments over Silicon Valley alternatives. “This investment represents more than capital—it’s a strategic bet on European technological sovereignty,” noted a partner from the lead investor group. The funding structure enables FMC to scale manufacturing capabilities whilst maintaining independence from Asian supply chains that have historically dominated memory markets. Both investors bring complementary expertise: HV Capital’s enterprise software networks and DTCF’s climate-focused portfolio positioning FMC advantageously for sustainable computing transitions. Ferroelectric memory positions Germany as semiconductor hub FMC’s ferroelectric memory technology addresses two critical European priorities: supply chain resilience and energy efficiency. Unlike conventional memory solutions requiring constant power to maintain data, ferroelectric memory offers non-volatile characteristics with dramatically reduced energy consumption—crucial for Europe’s aggressive climate targets. The Hamburg-based company’s approach leverages advanced materials science to create memory cells that retain information without continuous power, delivering both performance and sustainability advantages. The €100 million injection will accelerate FMC’s transition from research-stage prototypes to commercial production, with plans for a European manufacturing facility reducing reliance on Asian foundries. “We’re building the memory infrastructure Europe needs for digital sovereignty whilst advancing our climate goals,” explained FMC’s CEO, highlighting the dual strategic value proposition. The company’s technology roadmap includes partnerships with European automotive and industrial customers seeking secure, sustainable memory solutions for next-generation applications. This funding milestone positions FMC within Germany’s emerging semiconductor ecosystem, complementing government initiatives like the EU Chips Act’s €43 billion investment programme. By establishing European memory production capabilities, FMC addresses vulnerabilities highlighted during pandemic-era supply shortages whilst building foundations for future technological independence. The success signals growing investor appetite for European deep-tech startups tackling geopolitically sensitive technology domains.

The European buy-now-pay-later landscape is consolidating rapidly as regulatory pressures mount and consumer spending patterns shift. Against this backdrop, London-based Zilch has secured €161M ($175M) in growth funding from Czech investment group KKCG, positioning the fintech for potential strategic opportunities including mergers and acquisitions. The substantial funding round underscores KKCG’s confidence in Zilch’s differentiated approach to responsible lending within Europe’s increasingly regulated financial services sector. Unlike many competitors who rely purely on point-of-sale integrations, Zilch has built a comprehensive financial platform that combines BNPL with broader banking services, creating multiple revenue streams and deeper customer relationships. Strategic fintech growth funding targets European expansion KKCG’s investment represents more than capital injection—it signals a strategic partnership that could reshape Zilch’s trajectory across European markets. The Czech investment giant, known for backing technology companies with strong regulatory moats, sees opportunity in Zilch’s compliance-first approach to consumer credit. “Zilch has demonstrated exceptional discipline in building sustainable lending practices while maintaining strong unit economics,” noted KKCG’s investment team. This funding positions Zilch advantageously as European regulators tighten oversight of BNPL providers. The company’s existing FCA authorisation and robust risk management systems provide competitive advantages as smaller players struggle with compliance costs. KKCG’s backing also opens doors to Eastern European markets where the investor maintains significant influence and local expertise. The investment comes at a critical juncture for European fintech consolidation. While US players like Affirm and Sezzle face growth headwinds, European BNPL companies with strong regulatory foundations are attracting premium valuations from strategic investors seeking market consolidation opportunities. Zilch’s platform strategy differentiates in crowded market Founded in 2018, Zilch has distinguished itself by building beyond traditional BNPL functionality. The platform offers customers a virtual card that works across any retailer, eliminating merchant integration requirements that constrain competitors. This approach has enabled rapid scaling across the UK market while maintaining lower customer acquisition costs than point-of-sale dependent rivals. “We’ve built the infrastructure for responsible consumer lending at scale,” explained Zilch CEO Philip Belamant. “This funding allows us to accelerate our vision of becoming Europe’s leading financial platform, particularly as market consolidation creates opportunities for well-capitalised players.” The company reports over 3 million active customers and partnerships with major UK retailers including ASOS, JD Sports, and eBay. The €161M injection will fund product development, particularly in areas like savings accounts and investment products that complement the core BNPL offering. Zilch also plans significant hiring across its London headquarters, focusing on risk management and compliance teams—capabilities increasingly valued as regulatory scrutiny intensifies across European markets. KKCG’s investment validates Zilch’s strategy of building comprehensive financial services rather than pure-play BNPL functionality. As European fintech consolidation accelerates, well-funded platforms with regulatory expertise and diversified revenue models are positioning themselves as natural consolidators in an increasingly challenging market environment.

European businesses are increasingly recognising that traditional partner sales models are fundamentally broken. Whilst direct sales teams benefit from sophisticated CRM tools and data analytics, channel partnerships—which often represent 30-70% of enterprise revenue—remain managed through spreadsheets and manual processes. Introw, the London-based AI platform transforming how companies manage partner relationships, has secured €3M in funding from Visionaries Club to address this critical gap in the European market. The funding represents a significant validation of Introw’s approach to solving one of B2B sales’ most persistent challenges. Unlike the saturated direct sales technology market, partner sales remains remarkably underserved by modern tooling, creating substantial opportunities for European companies willing to tackle this complex domain. AI partner sales funding attracts strategic European backing Visionaries Club’s investment in Introw reflects the fund’s thesis around AI-enabled business transformation tools that address real operational pain points. The London-based investor has built a reputation for backing European B2B companies that use artificial intelligence to solve traditionally manual business processes, particularly in areas overlooked by mainstream venture capital. “Partner sales has been the forgotten stepchild of sales operations for far too long,” explains a Visionaries Club partner. “Whilst companies invest millions in optimising their direct sales processes, they leave billions in partner revenue potential untapped due to outdated management approaches. Introw’s AI-first platform finally brings partner relationships into the data-driven era.” The investment timing aligns with broader European regulatory trends favouring data transparency and partnership accountability. Recent GDPR enforcement actions have highlighted how poor partner data management can create compliance risks, whilst upcoming AI Act requirements will likely mandate greater algorithmic transparency in partnership decisions. European market expansion drives product development strategy Introw’s platform uses machine learning to analyse partner performance patterns, predict relationship outcomes, and automatically optimise resource allocation across channel partnerships. This approach particularly resonates with European enterprises, where complex multi-country partnerships and regulatory compliance requirements make manual management increasingly untenable. The company plans to use the €3M primarily for European market expansion, with particular focus on Germany and France where enterprise partner ecosystems are both sophisticated and fragmented. Additional funds will support product development around compliance automation and multi-language partnership analytics. “European businesses face unique partnership challenges that US-designed tools simply don’t address,” notes Introw’s CEO. “Our AI models understand European business culture, regulatory requirements, and the complex multi-party relationships that define how enterprises actually operate across borders here. This isn’t about applying Silicon Valley solutions—it’s about building specifically for European partnership complexity.” The funding positions Introw to compete directly with established players like PartnerFleet and Channeltivity, whilst targeting the substantial market of European enterprises still managing partnerships through legacy systems. This investment signals growing European investor confidence in vertical AI applications that solve specific business problems rather than pursuing broad horizontal platforms. As partnership complexity continues increasing across European markets, Introw’s focused approach may prove exactly what the continent’s enterprises need.