10 Medtech Startups to watch in 2021 – Selected

The European renewable energy sector is witnessing unprecedented capital allocation as institutional investors recognise the continent’s energy transition as a generational investment opportunity. Leading this charge is Enpal, Germany’s solar-as-a-service pioneer, which has secured a €700M asset-backed securities facility from M&G Investments, marking one of the largest green financing arrangements in European tech history. This facility represents more than capital—it validates the maturation of European climate tech beyond venture funding into institutional finance. For European households grappling with energy costs that remain 40% above pre-2021 levels, Enpal’s model offers immediate relief without upfront investment, precisely when traditional energy incumbents struggle with infrastructure modernisation. Solar Energy Financing Facility Attracts Institutional Capital M&G’s commitment reflects a strategic shift among European asset managers towards renewable infrastructure as core portfolio allocation. Unlike traditional venture rounds, this asset-backed structure allows Enpal to scale without dilution whilst providing M&G with predictable returns tied to German solar generation—a market with 20-year government-backed feed-in tariffs. “We’re seeing institutional capital recognise that European energy transition isn’t just policy—it’s profitable infrastructure,” notes Mario Kohle, Enpal’s co-founder. “This facility enables us to install solar systems across 100,000 additional European homes, each generating predictable cash flows for two decades.” The timing coincides with EU renewable energy directives requiring member states to achieve 42.5% renewable electricity by 2030. M&G’s portfolio strategy specifically targets assets supporting this transition, positioning the facility within broader European regulatory tailwinds rather than speculative tech investment. German Solar Market Leadership Drives European Expansion Enpal’s differentiation lies in removing residential solar adoption friction through its comprehensive service model. Customers receive solar installation, maintenance, insurance, and battery storage without upfront costs, paying monthly fees typically 20% below previous electricity bills. This approach has captured 15% of Germany’s residential solar market since 2017. The facility specifically funds European market expansion, with Netherlands and Austria identified as priority markets where similar regulatory frameworks exist. Unlike fragmented European markets that challenge many startups, energy transition benefits from harmonised EU directives creating consistent opportunities across member states. “European households understand solar economics but lack capital or expertise for implementation,” explains Kohle. “Our model transforms this infrastructure challenge into a subscription service, whilst our asset-backed financing structure scales without traditional venture constraints.” With over 50,000 installations completed and €2B in previous funding, Enpal demonstrates how European climate tech can achieve both environmental impact and institutional-grade financial returns. This facility positions the company to cement leadership as Europe’s residential solar sector evolves from early adoption to mass market deployment.

European enterprises are rapidly embracing conversational AI to transform customer interactions, with businesses across the continent investing heavily in intelligent automation solutions. This shift towards AI-powered customer service represents a fundamental change in how European companies approach customer engagement, driven by rising labour costs and increasing demand for 24/7 support capabilities. Leading this transformation is Aunoa, a Stockholm-based conversational AI platform that has just secured €15 million in funding to accelerate its expansion across European markets. The round was led by Eoniq and Faraday, two investors with strong portfolios in enterprise AI and customer experience technologies. Strategic backing fuels conversational AI expansion The funding represents a significant vote of confidence in Aunoa’s ability to capture the growing demand for sophisticated conversational AI solutions across Europe’s fragmented markets. Eoniq, known for backing enterprise software companies with strong product-market fit, brings deep expertise in scaling B2B platforms across multiple European jurisdictions. “European enterprises need AI solutions that understand the complexity of operating across different languages, regulations, and business cultures,” explains the investment thesis behind the round. Faraday’s participation adds crucial go-to-market expertise, particularly valuable given the firm’s track record of helping Nordic startups expand into central and southern European markets. The investor combination signals recognition that conversational AI is moving beyond simple chatbots towards sophisticated agents capable of handling complex customer interactions. This evolution is particularly relevant in Europe, where GDPR compliance and multilingual requirements create higher barriers to entry but also stronger competitive moats for successful platforms. European market dynamics drive product development Aunoa’s platform addresses specific challenges that European businesses face when implementing conversational AI at scale. The company’s technology handles multilingual conversations seamlessly, a critical capability for enterprises operating across the EU’s 24 official languages and numerous regional dialects. The funding will primarily support product development focused on European market needs, including enhanced compliance features for GDPR and the upcoming AI Act. “We’re building conversational AI that doesn’t just work in Europe—it’s designed specifically for European business requirements,” the company’s leadership team emphasises. This European-first approach differentiates Aunoa from US-based competitors who often struggle with the continent’s regulatory complexity and linguistic diversity. The platform’s ability to maintain context across multiple languages while ensuring data sovereignty requirements are met positions it strongly against both Silicon Valley incumbents and emerging local competitors. Market expansion plans focus on establishing strong partnerships with system integrators and consultancies across key European markets, leveraging the local expertise these relationships provide to navigate complex enterprise sales cycles. This funding round reflects the broader maturation of Europe’s enterprise AI sector, where sophisticated solutions tailored to European business needs are increasingly attracting significant investment. Aunoa’s success in securing substantial backing from experienced investors suggests that conversational AI platforms with genuine European market understanding are well-positioned to capture growing enterprise demand across the continent.

European laboratories are embracing AI-powered microscopy at unprecedented rates, with productivity gains of up to 75% driving investment across the continent. This surge in digitalisation reflects broader trends in MedTech automation as regulatory frameworks like the EU’s Medical Device Regulation create demand for more precise, traceable diagnostic tools. Swedish biotech Cytely has secured €3 million in funding to accelerate its smart microscopy platform across European markets. The round was led by Ugly Duckling Ventures, positioning the Stockholm-based company to capitalise on growing demand for AI-enhanced laboratory equipment. Founded in 2021, Cytely has developed automated microscopy solutions that reduce analysis time whilst improving accuracy in cellular research. The company’s platform combines advanced imaging with machine learning algorithms to streamline workflows for pharmaceutical research and clinical diagnostics. Smart microscopy funding attracts Nordic investors Ugly Duckling Ventures, known for backing early-stage Nordic deeptech companies, led the investment round. The Stockholm-based VC has previously invested in companies like Kognic and Recorded Future, demonstrating their commitment to AI-powered solutions with global potential. “We’re seeing laboratories across Europe struggling with bottlenecks in microscopy analysis,” explains a spokesperson from Ugly Duckling Ventures. “Cytely’s approach of combining hardware optimisation with intelligent software creates compelling value for research institutions facing increasing workloads.” The funding positions Cytely within a growing ecosystem of Nordic companies applying AI to traditional industries. Sweden’s strong research infrastructure and talent pipeline in both life sciences and artificial intelligence create natural advantages for companies like Cytely competing in global markets. European investors are increasingly focused on companies that can demonstrate clear productivity improvements in regulated industries, particularly where AI adoption has lagged behind other sectors. European laboratories drive adoption of automated microscopy Cytely’s platform addresses specific challenges within European research environments, where varying regulatory requirements across member states create complexity for traditional microscopy workflows. The company’s automated approach helps standardise analysis protocols whilst maintaining compliance across different jurisdictions. “Traditional microscopy requires extensive manual intervention, creating variability in results,” notes Cytely’s leadership team. “Our platform ensures consistent, reproducible analysis whilst dramatically reducing time-to-insight for research teams.” The funding will support expansion across key European markets, including Germany’s pharmaceutical research sector and the UK’s biotech clusters. Cytely plans to establish partnerships with major research institutions whilst developing additional AI capabilities for specialised microscopy applications. Competition in the automated microscopy space includes established players like Leica Microsystems and emerging AI-first companies. However, Cytely’s focus on European regulatory requirements and local partnership strategies provides differentiation in fragmented markets. This investment reflects growing confidence in Nordic deeptech companies that combine hardware innovation with AI capabilities. As European laboratories face increasing pressure to improve efficiency whilst maintaining quality standards, solutions like Cytely’s platform become increasingly attractive for research institutions and commercial laboratories alike.