Swedish startups are at a crossroads, facing a critical decision: sell early for quick gains or hold out to potentially become Europe's first trillion-dollar company. This dilemma highlights the broader challenges in the European tech ecosystem, where **AI innovation** is booming but **exit strategies** often favor acquisitions over long-term growth. Many founders grapple with the pressure to monetize their breakthroughs versus betting on **exponential scaling** in a competitive global market. The article underscores how this choice impacts not just individual companies but Europe's ambition to rival Silicon Valley in producing **unicorn giants**. Key factors include access to **venture capital**, regulatory environments, and the allure of **strategic partnerships** with larger tech firms. As AI reshapes industries, the path these startups choose could define the continent's economic future.

Swedish start-ups show dilemma over choosing between selling up or betting on becoming huge

Europe's AI Startups: The Billion-Dollar Dilemma of Selling Out vs. Scaling Up

A group of RNA veterans is launching a new startup aimed at getting **RNA-interfering (RNAi) molecules** into the brain to silence the genes that cause neurodegenerative diseases. Called **Aerska**, the Dublin-headquartered firm has raised **$21 million in seed funding**, with plans to treat Alzheimer’s and Parkinson’s diseases.

"It started in a pub in Ireland, like all good ideas," says CEO Jack O’Meara. It was late 2024, and O’Meara had just stepped away from Ochre Bio, a startup he’d cofounded to make RNAi drugs to treat liver diseases. O’Meara had for years wanted to use RNAi to tackle brain disorders, but he’d run into a series of technical challenges: first, getting RNAi molecules across the **blood-brain barrier**, then getting them to distribute throughout the brain’s 400 miles of capillaries instead of settling in one spot.

Meetings in bars and restaurants in Ireland and Boston sparked the beginnings of Aerska. O’Meara reconnected with Stuart Milstein, a former Alnylam Pharmaceuticals scientist who’d helped lead neuroscience efforts at the RNAi-focused firm, and David Coughlan, another Ochre Bio veteran, to help refine his ideas. O’Meara then reached out to some of his former investors. It didn’t take long for Aerska to get off the ground: the startup emerged from stealth on Wednesday with 15 employees spread across Ireland, the UK, and the US, including Milstein as cofounder and Coughlan as head of early development.

Aerska’s key technology is what O’Meara and his team have termed **"brain shuttles"**.

The **blood-brain barrier strictly controls what molecules can pass** into the brain, and the endothelial cells that make up the barrier have receptors that determine which molecules, like iron and glucose, they can safely allow across the wall. "We basically try and trick the blood-brain barrier into thinking your RNA is something it wants to internalize," O’Meara says.

To do that, the Aerska team attaches **transferrin-receptor-targeting antibodies** to the interfering RNA molecules, making antibody-oligonucleotide conjugates. The shuttle binds to that receptor, "and then the payload gets pulled across [the blood-brain barrier], in concert with the antibody or peptide that’s used to conjugate the RNA." From there, the RNAi medicine would—in theory—be distributed throughout the brain through its bloodstream.

O’Meara and his team are hoping to avoid spinal injections and intravenous infusions, instead engineering for a more patient-friendly approach: **under-the-skin injections**, the same way medicines like semaglutide are administered. But that’s still a few years away. O’Meara says Aerska is in conversation with potential licensing partners for technology that could speed up the startup’s preclinical work. The $21 million seed round will last a couple of years. After that, O’Meara will need to raise more money before Aerska can begin testing in humans.

O’Meara and his team intend to take a **precision medicine approach** to treating Alzheimer’s and Parkinson’s diseases. That is, they will likely try to find certain subpopulations that have a greater chance of responding to Aerska’s drug candidates.

"We’re looking for patient populations where we’re more confident in the biology and the target that we’re going for," O’Meara says. "If we could try to take some lessons learned from the oncology field, once you start to divide these diseases up into more tractable subdiseases, they get easier."

With $21 million, Aerska plans to treat neurodegenerative diseases

Unlocking the Brain's Secrets: How Aerska's RNAi 'Shuttles' Could Revolutionize Neurodegenerative Disease Treatment

## Europe's Impact Startup Landscape

According to the latest **Norrsken's impact/100** list, **46 of the world's most promising impact startups** are based in Europe, highlighting the continent's growing influence in the sustainable and socially responsible business sector.

### Germany Takes the Lead

**Germany** emerges as the clear frontrunner with **17 startups** on the list, showcasing its strong commitment to innovation in impact-driven ventures. This dominance underscores Germany's robust ecosystem for supporting startups that prioritize environmental and social goals alongside profitability.

### UK and France Follow Closely

Following Germany, the **United Kingdom** and **France** secure prominent positions, reflecting their vibrant startup scenes and increasing focus on sustainability. These countries are nurturing a new generation of entrepreneurs dedicated to addressing global challenges through innovative business models.

### The Rise of Impact Investing

This selection by investors signals a **growing trend in impact investing**, where financial returns are balanced with positive societal and environmental outcomes. Europe's strong representation in the Norrsken list suggests that the region is becoming a hub for startups that are not only profitable but also purpose-driven.

46 companies of Norrsken's impact/100 are based in Europe. Germany leads the list with 17 startups, followed by the UK and France.

Europe's Top 46 Impact Startups Revealed: Which Countries Are Leading the Charge?

![Toyota CES 2025 Media Day](https://s.yimg.com/ny/api/res/1.2/th_2aqpWNrIP9aIS08juiQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTY0MDtoPTQyNztjZj13ZWJw/https://media.zenfs.com/en/techcrunch_finance_785/7b6f1a44b008c2a8289a4558f1c54df5)
*Akio Toyoda, Chairman and Master Driver of Toyota, delivers an address at CES 2025, showcasing the company's latest innovations in Las Vegas. | Image Credits: Artur Widak/Anadolu / Getty Images*

Toyota is aggressively seeking the next big innovations in **mobility**, **climate technology**, **AI**, and **industrial automation**. The automaker is backing this vision with a substantial **$1.5 billion in new capital**, aimed at investing in startups across their entire lifecycle—from the earliest seed stages through growth phases and into maturity.

## Toyota's Strategic Investment Moves

This week, Toyota unveiled two key initiatives that highlight its deepening commitment to the startup ecosystem. These efforts are closely tied to **Woven City**, a prototype city in Japan designed to nurture startups, which recently opened its doors.

- **Toyota Invention Partners Co.**: A new strategic investment subsidiary has been established with approximately **$670 million in capital**. This entity will focus on **Japan-based startups** and adopt a long-term approach, moving away from fixed investment periods typical of traditional funds.

- **Woven Capital's Second Fund**: The growth-stage venture arm launched a new **$800 million fund**, continuing its mission to support scaling companies.

George Kellerman, General Partner at Woven Capital, described Toyota Invention Partners as a "bookend" to Toyota's other investment arms. It handles the "**zero to one**" stage, while **Toyota Ventures** manages early-stage investments, and **Woven Capital** focuses on growth stages. Importantly, Toyota Invention Partners may stick with startups through all phases, potentially integrating successful ventures into Toyota's balance sheet.

## A Unified Investment Strategy

Kellerman emphasized that these announcements reflect Toyota's strong belief in startup-driven innovation. With over **$3 billion committed** across various funds, Toyota is "leaning in" to meet the evolving needs of founders and the market.

This strategy is already in action. For instance, **Machina Labs**, a Los Angeles startup using **AI and robotics** for rapid metal structure production, received a strategic investment from Woven Capital. Toyota Motor North America is piloting Machina Labs' technology to manufacture automotive body panels and accessories, though specific investment details were not disclosed.

Toyota made two announcements that reflect the automaker's growing interest in startups working on mobility, climate, AI, sustainability, and industrial automation.

Toyota's $1.5B Startup Bet: Fueling the Future of Mobility, AI, and Climate Tech

Legora, a Swedish artificial intelligence startup that works with law firms, is in discussions to raise more than **$100 million** in financing that would value the company at around **$1.7 billion**, according to people familiar with the talks.

Bessemer Venture Partners is set to lead the round, the people said, asking not to be named as the information is not yet public.

Legora, a Swedish artificial intelligence startup that works with law firms, is in discussions to raise more than $100 million in financing that would value the company at around $1.7 billion, according to people familiar with the talks.

AI Startup Legora Valued at $1.7 Billion to Revolutionize Legal Work

## A Life-Changing Layoff

**Steph Kumar's world turned upside down when she was laid off from Twitter**. Like many in the tech industry, she had built her entire identity around her career. The sudden job loss forced her to confront a fundamental question: **Who was she beyond her professional title?**

![Steph Kumar standing under a stone archway in a narrow Barcelona alley, smiling with arms crossed](https://i.insider.com/68dbec195dbc4fd10da9d6f3?width=700)

*Steph Kumar relocated her family from the Bay Area to Barcelona after getting laid off and founding her own company.*

## The Identity Crisis That Sparked Transformation

For years, Kumar had been climbing the corporate ladder at major tech companies including **Twitter, Pinterest, and Google**. Her career defined her sense of self-worth and purpose. When the layoff hit, she experienced what many high-achievers face: **a profound identity crisis**.

"My career had become my entire identity," Kumar realized. "The layoff wasn't just about losing a job—it was about losing who I thought I was."

## The Barcelona Decision

Instead of immediately jumping back into the Bay Area tech rat race, Kumar made a bold move. She packed up her family and **moved to Barcelona**, trading Silicon Valley's intense pressure for Spain's more balanced lifestyle.

**The relocation wasn't just geographical—it was psychological**. Kumar decided to redefine what success meant to her, moving away from corporate validation and toward personal fulfillment.

## Building a Startup on Her Own Terms

In Barcelona, Kumar **founded her own startup**, applying the skills she'd honed at major tech companies but with a completely different mindset. Her new venture focuses on creating meaningful impact rather than chasing venture capital or rapid scale.

"Starting my own company after years in big tech felt like reclaiming my power," she explains. "I'm building something that aligns with my values, not just corporate metrics."

## The Happiness Equation

Kumar's story highlights a growing trend among tech professionals: **the search for work-life balance and authentic fulfillment**. Her experience shows that sometimes the most career-defining moments come from stepping away from traditional success paths.

**Moving to Barcelona provided more than just scenic views**—it offered a new perspective on what truly matters in life and career. The slower pace, rich culture, and emphasis on living rather than just working have transformed Kumar's approach to entrepreneurship.

After Steph Kumar was laid off from Twitter, she realized how her career shaped her identity. She redefined success by founding a startup and moving to Barcelona.

From Twitter Layoff to Barcelona Bliss: How One Founder Redefined Success and Found Happiness

## Meta's Strategic Acquisition to Boost AI Infrastructure

**Meta Platforms Inc.** is making a strategic move to strengthen its artificial intelligence capabilities by acquiring chip startup **Rivos Inc.**, according to sources familiar with the deal. This acquisition represents a significant step in Meta's ongoing effort to enhance its internal semiconductor development and gain greater control over its AI infrastructure.

### Bolstering Internal Chip Development

Rivos has been actively developing its own **graphics processing unit (GPU)**, the specialized chip that powers most artificial intelligence workloads. This aligns perfectly with Meta's existing internal chip development initiatives, particularly the **Meta Training and Inference Accelerator (MTIA)** team that's already building custom chips for AI development.

### Reducing Dependence on External Suppliers

Despite having internal chip development teams, Meta continues to spend **billions of dollars annually** on GPUs from external partners, with **Nvidia Corp.** being the dominant supplier in this space. The Rivos acquisition signals Meta's commitment to reducing this dependence and bringing more chip development capabilities in-house.

### The Bigger Picture for AI Infrastructure

This move reflects the growing trend among major tech companies to develop proprietary AI hardware solutions. By controlling more of their semiconductor infrastructure, companies like Meta can potentially achieve better performance optimization, cost efficiency, and technological independence in the increasingly competitive AI landscape.

Meta Platforms Inc. is acquiring chips startup Rivos Inc., according to a person familiar with the deal, part of an effort to bolster its internal semiconductor development and control more of its infrastructure for artificial intelligence work.

Meta's Secret AI Chip Power Play: Acquiring Rivos to Challenge Nvidia Dominance

**Venture capital firm NEXT Global Capital** has made a major announcement: it is relocating its global headquarters to **Salt Lake City** and appointing former U.S. Congressman **Chris Stewart** as its new chief strategy officer. This strategic move underscores the company's commitment to growth and innovation in a region known for its entrepreneurial spirit.

L.R. Fox, the founder of NEXT Global, emphasized the significance of this expansion, stating, "NEXT Global’s move to Utah and the appointment of Chris Stewart as chief strategy officer reflect NEXT Global’s investment in strategic expansion and our long-term organizational goals. At NEXT Global, we are committed to identifying and investing in breakthroughs that will change the world. We’re thrilled to expand these contributions in a community that shares our values of innovation, collaboration, and community building."

Fox is also recognized for launching **WhiteFox Defense**, a leading counter-drone solutions company that specializes in drone detection, tracking, and mitigation to protect critical airspace. Additionally, NEXT Global manages **NEXT Life Sciences**, which is pioneering the development of "Plan A," the first nonhormonal and reversible male contraceptive designed to last up to 10 years, aiming to empower individuals in family planning decisions.

The new Salt Lake City office will serve as the central hub for NEXT Global's core operations and as a regional center for engaging with entrepreneurs focused on **high-impact projects** that could redefine the future.

In his new role, Fox, who also works as a venture partner at California-based **Okapi Venture Capital**, is moving to Utah to help expand that firm's presence in the Mountain West, with a strong emphasis on supporting Utah's dynamic business community.

Chris Stewart expressed his enthusiasm, saying, "I’m honored to join NEXT Global Capital as the company establishes its headquarters in Salt Lake City. Utah has long served as a hub of innovation and entrepreneurship. Fox joining this hub has already led to significant investment that will be felt globally. NEXT Global Capital aligns with my personal mission to advance solutions that make a real impact."

Stewart brings extensive experience in aerospace and technology, having previously served as chairman of **47G**, Utah's defense and aerospace association. Although former Utah House Speaker Brad Wilson took over as chairman in April, Stewart remains an active member of the board of directors.

Venture capital firm NEXT Global Capital announced last week that it is relocating its global headquarters to Salt Lake City and appointing former U.S. Congressman Chris Stewart as chief strategy officer.

Europe's AI Startups: The Billion-Dollar Dilemma of Selling Out vs. Scaling Up

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