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illuminem summarises for you the essential news of the day. Read the full piece in The Wall Street Journal or enjoy below:
🗞️ Driving the news: European AI startups are increasingly turning to U.S. investors for early-stage funding, citing faster deal-making, larger capital commitments, and a more risk-tolerant culture
• Entrepreneurs like Brandon Abreu Smith, co-founder of Structured AI, report securing funding within days in Silicon Valley — after struggling for months in London
• This trend highlights a widening transatlantic gap in AI startup support and early-stage investment ecosystems
🔭 The context: Despite political momentum in the EU around AI regulation and digital sovereignty, Europe has long lagged behind the U.S. in tech financing
• American venture capital firms raised roughly 10 times more funding than their European counterparts in 2024, enabling them to place bigger and faster bets on capital-intensive AI ventures
• Programs like Y Combinator further consolidate the U.S. advantage by offering funding, mentorship, and rapid exposure to global investors
🌍 Why it matters for the planet: AI has far-reaching implications for energy efficiency, climate modelling, and sustainable infrastructure
• If European AI innovators continue relocating to the U.S. for funding, the region risks losing talent critical to developing responsible, sustainability-aligned AI systems
• Moreover, Europe's ambitions for AI sovereignty and regulatory leadership may weaken without a robust domestic startup pipeline
⏭️ What's next: European policymakers and investors face growing pressure to respond with deeper pools of patient capital, streamlined funding processes, and stronger support infrastructure for AI startups
• Initiatives like the European Innovation Council and national AI strategies may need to scale quickly to prevent long-term talent drain
• Without these reforms, Europe’s role in shaping ethical and sustainable AI could be increasingly marginalized
💬 One quote: "We had all but given up until we landed in San Francisco. The difference in investor mindset was night and day," — Brandon Abreu Smith, co-founder, Structured AI
📈 One stat: In 2024, U.S. venture capital firms invested over $50 billion in AI startups—compared to less than $5 billion from EU-based firms
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