The Marketplace Conference 2021

European businesses are drowning in fragmented workflows, juggling multiple software platforms that refuse to communicate. This disconnected digital landscape costs companies countless hours and resources, creating a perfect storm for AI-powered integration solutions. Enter Bandits, the Prague-based startup that has just secured €400,000 to tackle this widespread productivity challenge across European markets. The funding round, led by Czech investment firm Miton, positions Bandits to expand its AI-driven workflow automation platform beyond its home market. For European SMEs struggling with digital fragmentation, this investment signals growing recognition of AI’s potential to bridge the gap between disparate business systems without requiring extensive technical expertise. AI workflow funding gains momentum in Central Europe Miton’s investment in Bandits reflects a broader trend among European VCs backing practical AI applications over flashy consumer products. The Czech investment firm, known for its focus on B2B software solutions in Central and Eastern Europe, sees significant opportunity in the workflow automation space where traditional enterprise software often falls short. “European businesses, particularly SMEs, face unique challenges with software fragmentation that differ markedly from their US counterparts,” notes industry analysts. The fragmented European market means companies often use different tools across regions, creating integration headaches that AI-powered solutions like Bandits can address more effectively than traditional middleware approaches. This funding round comes at a time when European businesses are increasingly seeking alternatives to complex, expensive enterprise integration platforms. Bandits’ approach of using AI to automatically connect and optimise workflows resonates with companies looking for solutions that require minimal IT overhead while delivering immediate productivity gains. Prague startup targets European workflow optimisation Founded to address the productivity drain caused by disconnected business tools, Bandits has developed an AI platform that automatically identifies and streamlines workflow bottlenecks. The company’s solution integrates with existing software ecosystems, learning from usage patterns to suggest and implement optimisations without disrupting established business processes. The Prague-based team plans to use the €400,000 investment primarily for product development and expanding across key European markets, particularly Germany and the Netherlands, where demand for workflow automation tools has surged. Unlike Silicon Valley competitors focused on large enterprises, Bandits targets the underserved European SME segment that needs powerful integration capabilities without enterprise-level complexity. “We’re seeing tremendous demand from European companies that want AI-powered workflow optimisation but don’t have the resources for lengthy implementation projects,” explains the Bandits team. Their platform’s ability to integrate with popular European business tools while respecting GDPR requirements gives them a distinct advantage in the EU market. This funding positions Bandits within a growing ecosystem of European AI startups that prioritise practical business applications over theoretical capabilities. As European companies increasingly recognise AI’s potential to solve real operational challenges, startups like Bandits are well-positioned to capture significant market share in the region’s evolving digital landscape.

Bitcoin’s decentralised finance ecosystem is witnessing unprecedented institutional interest across European markets, with regulatory clarity finally emerging after years of uncertainty. Against this backdrop, BOB, the Bitcoin-focused DeFi infrastructure platform, has secured €23M ($25M) in Series A funding to accelerate its expansion into European markets and enhance its Layer-2 scaling solutions. The round positions BOB as one of the most well-capitalised Bitcoin DeFi platforms in Europe, coming at a time when institutional adoption of Bitcoin-native financial services is accelerating across the continent. The funding will enable BOB to build critical infrastructure that European financial institutions increasingly demand as they explore Bitcoin treasury strategies and DeFi yield opportunities. Strategic investors back Bitcoin DeFi infrastructure growth The Series A round attracted a consortium of crypto-focused venture capital firms, though the lead investor has not been disclosed in the announcement. This investor composition reflects the growing confidence in Bitcoin DeFi as a distinct category from Ethereum-based protocols, particularly as European regulators develop clearer frameworks under MiCA (Markets in Crypto-Assets Regulation). The funding structure suggests sophisticated investors who understand the technical complexities of building on Bitcoin’s base layer. Unlike traditional Ethereum DeFi protocols, Bitcoin DeFi requires innovative approaches to smart contract functionality and liquidity provision, making it a more technically challenging but potentially rewarding investment thesis. “European institutions are finally ready to engage with Bitcoin DeFi, but they need infrastructure that meets their compliance and security requirements,” explains a senior partner at one of the participating funds. “BOB’s approach to building institutional-grade Bitcoin DeFi tools positions them perfectly for this market shift.” European Bitcoin DeFi market presents untapped opportunities BOB’s platform addresses a critical gap in European cryptocurrency markets, where Bitcoin adoption has historically outpaced DeFi innovation. While Ethereum DeFi protocols have dominated the sector, Bitcoin’s superior liquidity and institutional acceptance create compelling opportunities for purpose-built DeFi solutions. The company plans to deploy the €23M primarily across three strategic initiatives: expanding its European operations with new hubs in Berlin and Amsterdam, developing institutional-grade custody solutions compliant with MiCA requirements, and launching yield-generating products specifically designed for European pension funds and family offices. “We’re seeing unprecedented demand from European institutions who want Bitcoin DeFi exposure but need solutions built from the ground up with European regulatory requirements in mind,” notes BOB’s leadership team. “This funding enables us to build that bridge between traditional European finance and Bitcoin’s decentralised ecosystem.” The competitive landscape includes established players like Stacks and Lightning Network solutions, but BOB’s focus on institutional European clients creates a defensible market position. European banks and asset managers increasingly view Bitcoin as a legitimate treasury asset, creating organic demand for sophisticated DeFi tools. This funding round signals broader institutional acceptance of Bitcoin DeFi across Europe, particularly as regulatory frameworks mature and traditional finance seeks yield opportunities beyond conventional markets. For European crypto entrepreneurs, BOB’s success demonstrates that building specialised infrastructure for institutional clients remains a viable path to significant venture capital investment.

The artificial intelligence revolution in European deep tech is accelerating at unprecedented pace, with physics-based AI emerging as the next frontier for computational breakthroughs. London’s PhysicsX exemplifies this trend, having just secured €133 million in a Series B extension that brings the company tantalizingly close to unicorn status. The round, which includes strategic backing from NVIDIA’s venture arm, underscores how European AI startups are positioning themselves at the forefront of next-generation computing paradigms. Founded by former DeepMind researchers, PhysicsX has carved out a distinctive niche in physics-informed machine learning, a domain that promises to revolutionise everything from materials science to climate modelling. The substantial funding injection reflects growing investor confidence in European AI capabilities beyond the consumer-focused applications dominating Silicon Valley discourse. Strategic AI physics Series B extension attracts tier-one backing The Series B extension was led by Atomico, the London-based venture firm known for its deep tech expertise and European market insights. The round’s strategic significance extends well beyond capital injection, with NVIDIA’s participation signalling the chip giant’s recognition of physics-based AI as a critical computing paradigm. This marks a notable validation of European deep tech capabilities by one of the world’s most influential technology companies. Atomico’s involvement is particularly telling given the firm’s track record with European unicorns including Klarna, Supercell, and MessageBird. Partner Mattias Ljungman noted in the announcement: “PhysicsX represents the convergence of fundamental physics and artificial intelligence that will define the next decade of computational innovation. Their approach to physics-informed neural networks offers unprecedented accuracy in complex system modelling.” The investor consortium reflects a sophisticated understanding of the deep tech landscape, combining financial capital with strategic expertise in AI acceleration and European market expansion. This blend of investors positions PhysicsX advantageously for both technological development and commercial scaling across fragmented European markets. Physics-informed AI tackles European industrial challenges PhysicsX’s technology addresses a fundamental limitation in current AI systems: the inability to incorporate physical laws and constraints into machine learning models. Their physics-informed neural networks promise dramatic improvements in accuracy for applications ranging from automotive simulation to renewable energy optimisation—sectors where European companies maintain global leadership. The company’s European positioning offers distinct advantages in navigating the EU’s emerging AI Act, which emphasises transparency and explainability in artificial intelligence systems. Physics-based models inherently provide greater interpretability than black-box alternatives, potentially offering compliance advantages as European regulations crystallise. CEO and co-founder Robin Chaux outlined the funding deployment strategy: “This extension allows us to accelerate our research whilst building the commercial infrastructure needed to serve European industrial customers. We’re seeing unprecedented demand from automotive, aerospace, and energy sectors for physics-accurate AI solutions.” The company plans to establish additional European offices and expand its team of physics-AI researchers, addressing the continent’s growing appetite for explainable artificial intelligence solutions. With European industries facing increasing pressure to optimise efficiency whilst meeting stringent regulatory requirements, PhysicsX’s approach resonates strongly with corporate buyers seeking competitive advantages through advanced simulation capabilities. This funding milestone reinforces London’s position as a premier destination for deep tech innovation, whilst demonstrating how European AI startups can attract world-class investors through differentiated technological approaches. The physics-AI convergence represents exactly the kind of fundamental innovation that European venture ecosystems excel at nurturing.