Premier Inn Turns to High-Margin Rooms to Offset UK Hotel Weakness
Premier Inn says it's outperforming rivals in a soft UK market, but it's doing so by squeezing more value from fewer guests, not a rebound in demand.
Premier Inn-owner Whitbread reported a drop in UK accommodation sales in its fiscal first quarter and is trying to offset weaker demand by charging guests for room upgrades and add-ons.
UK accommodation revenue declined 2% for the period that ended May 29. RevPAR also fell 2%, while occupancy dropped to 78.6%, down more than 3 points from last year.
Trading "was against a softer demand backdrop," Whitbread CEO Dominic Paul said on the company's earnings call Thursday.
1. Upselling to lift spend per guest: With fewer bookings, Premier Inn is tryi
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
Contemplated Capital Increase of € 1.35 Billion, to Secure the Execution of Eutelsat Long-Term Strategic Vision, Anchored by the French State and Other Reference Shareholders
PARIS, June 19, 2025--(BUSINESS WIRE)--Regulatory News: Eutelsat (ISIN: FR0010221234 - Euronext Paris / London Stock Exchange: ETL) announces a Contemplated capital increase of € 1.35 billion, anchored by key reference shareholders, to secure the execution of long-term strategic vision. Strong market momentum in the LEO-enabled connectivity market with significant long-term value creation potential Eutelsat is one of only two global operators with active commercial LEO (Low Earth Orbit) fleets and with a clear differentiation, being the only one exclusively focused on the B2B and B2G markets. While the global satellite connectivity market is expected to increase by 12% per annum between 2025 and 2029, the global LEO B2B connectivity market, valued at over $2.1 billion in 20251, is expected to grow at a 28% CAGR through 2029 and multiply its current size fivefold over the next eight years, offering significant short to long-term growth potential. The LEO revolution, both technological and industrial, has brought satellite communications into a new era, delivering affordable and ubiquitous connectivity at scale, with unprecedented customer experience for satcoms. This unlocks a huge market potential, from bridging the digital divide across all customer segments on a global basis, to unlocking numerous new use cases, such as mobility over land, sea and air. Barriers to entry into LEO – in particular access to, and the requirement to share spectrum secured by Eutelsat - mean only a limited number of players will participate in the massive growth ahead, creating compelling conditions for value creation. Eutelsat, the only GEO-LEO operator, and the only European operator with a fully operational LEO network, uniquely positioned to capture the momentum in the connectivity market Eutelsat is uniquely positioned to capture this market opportunity, thanks to its legacy, fully-invested high cash-flow generating GEO business, its operational scale, commercial momentum, and targeted focus on professional and institutional use cases. Since its acquisition of OneWeb, it has expanded its coverage – now expected to be fully achieved in calendar year-end 2026, secured regulatory approvals in many addressable markets, developed its distribution network and improved its offer with consistent service levels, as evidenced by a backlog of €3.7bn revenues, mostly coming from Connectivity. Going forward, Eutelsat leadership will build upon its operations improvements (e.g. hosted payloads, additional deployment of Satellite Network Portals) a differentiated go-to-market model (focused on B2B/B2G), a resilient GEO-LEO offering, and a strong European anchoring. Its priority spectrum rights grant Eutelsat a unique benefit in the exploitation of spectrum resources and coordination with other LEO players. As the only European operator with a fully operational LEO network, Eutelsat is positioned to play a strategic role in supporting critical sectors such as military communications, cyber-resilience, and secure government connectivity, fully aligned with European Union and NATO objectives for strategic autonomy. The landmark 10-year framework agreement announced earlier this week with France's Ministry of the Armed Forces, aimed at strengthening the integration of civilian and military assets (Nexus program), for a maximum amount of €1 billion, illustrates the strategic role of the LEO constellation in France's model for sovereign defense and space communications. Moreover, with its role as the largest private investor in the European Union's IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite) program, the public-private partnership aiming to build a multi-orbit constellation delivering secure communication services to the EU and its Member States, Eutelsat confirms its status as a central player in assuring Europe's space and connectivity sovereignty. €1.35 billion equity capital increase to be executed by year-end to fulfill strategic plan and longer-term ambitions Eutelsat is contemplating raising €1.35 billion of capital by way of (i) a reserved capital increase of €716 million at a price per share of €4 corresponding to a +32%2 premium to the 30-day-VWAP of the shares as computed on Euronext Paris (the "Reserved Capital Increase"), which would be subscribed by the French State via the Agence des Participations de l'Etat ("APE")3, Bharti Space Limited, CMA CGM, and Le Fonds Stratégique de Participations ("FSP"), and (ii) a rights issue of €634 million (the "Rights Issue"), which would be subscribed for their rights by the above investors. Prior to the approval of the Reserved Capital Increase by Eutelsat's shareholders, the APE will acquire the shares of the Company currently held by Bpifrance Participations, at a price per share equal to the subscription price of the Reserved Capital Increase. Consequently, the Board member representing Bpifrance Participations would be replaced by a representative of the French State. This capital increase would represent a pivotal step in Eutelsat's strategic and financing roadmap, enabling the execution of its strategic vision. Coupled with a dedicated debt refinancing plan, this capital increase will reinforce the Company's financial flexibility by accelerating its deleveraging and support investment in its existing Low Earth Orbit (LEO) capabilities and the future IRIS² constellation. On the back of the forthcoming capital increase, Eutelsat would reduce its leverage to c. 2.5x4 by year-end FY'2025-26, and would be well placed to tap debt capital markets, raise export credit financing and extend its bank debt maturities in order to fully cover the financing needs of its medium-term plan. The French State via the APE, Bharti Space Limited, CMA CGM, and FSP (together the "Reserved Capital Increase Investors") have entered into commitments to subscribe to the Reserved Capital Increase and the Rights Issue pro-rata their shareholding post the Reserved Capital Increase. Such commitments are subject to, inter alia, shareholders' approvals at an Extraordinary Shareholders' Meeting to be held around the end of the third quarter of calendar 2025, customary regulatory approvals, as well as the execution, under mutually acceptable conditions, of an amended, non-concerting shareholders' agreement reflecting the ownership structure post Reserved Capital Increase. The capital increase has been unanimously approved by the Eutelsat Board members present or represented. Subject to the above, the Reserved Capital Increase Investors have also committed to vote in favor of the transaction at the extraordinary shareholders' meeting (which would implement the governance5 changes in connection with the Reserved Capital Increase and during which the Company will also request new authorisations for the Rights Issue) and to maintain their share ownership until the launch of the Rights Issue. The Reserved Capital Increase and the Rights Issue are expected to be completed by the end of calendar 2025 at the latest. The Reserved Capital Increase would be subscribed by the French State via APE for €526.4 million, Bharti Space Limited for €31.4 million, CMA CGM for €100.4 million, and FSP for €57.8 million. Discussions are ongoing with other interested investors, including His Majesty's Government6, which could join the capital raise in due course. Following the two transactions, and subject to participation from investors, the French State would hold a stake of 29.99% of the capital and voting rights, while Bharti Space Limited, CMA CGM and FSP would respectively hold 18.70%, 7.81% and 5.22% of the share capital and voting rights, being specified that the Reserved Capital Increase Investors would not be in a position to launch a public takeover. Financial outlook: solid growth and an industry-leading margin Eutelsat demonstrates some of the most attractive growth and profitability prospects in the sector, with revenue expected to range between €1.5 and €1.7 billion by the end of FY'2028–297, supported by the strong momentum of LEO revenues, which are significantly outperforming the market. Operating leverage is expected to drive mid-to-high-single-digit percentage point improvements in EBITDA margin8, resulting in a margin of at least 60% by FY'2028-29. In the longer-term (post FY'2028-29), B2B connectivity market is expected to pursue its growth at a double-digit rate, mostly driven by LEO market expansion. For FY'2025-269, Eutelsat targets revenues in line with, and an adjusted EBITDA margin slightly below, those of FY'2024-25, notably due to the impact of Russian sanctions in the Video Business. Benefitting from commercial momentum, LEO revenues are expected to grow by 50% year-on-year. Eutelsat confirms its objectives for FY'2024-25, to be published on 5th August, of Operating Vertical Revenues around the same level as FY'2023-24 and an adjusted EBITDA margin slightly below the level of FY'2023-24. Gross capital expenditure is expected in a range of €500-600 million. Gross capital expenditures are expected to reach approximately €1.0 to €1.1 billion in fiscal year 2025–26, reflecting the timing of key milestones— including the order of an initial batch of 100 additional satellites starting in December 2024, as well as the procurement of 340 more satellites for the current LEO constellation. From 2025–26 onwards, gross capex will be focused on LEO activities, in line with the Group's strategic vision, primarily for the Gen-1 follow-on program (with a total envelope of €2 billion between 2024–25 and 2028–29). Gross capex will also be deployed for GEO operations to ensure service a gross capital expenditure envelope of around €2 billion will be allocated to the deployment of IRIS2, for the essential starting from 2027–28 onwards. The abovementioned capital increases would secure Eutelsat's deleveraging path, with Net Debt/EBITDA estimated at c.2.5x by year-end FY'2025-26, ensuring a robust and self-funded financing structure. Jean-François Fallacher, CEO of Eutelsat Group, stated: "Eutelsat enters a new chapter, centered on the deployment of LEO, a major innovative and technological revolution for the Satellite industry. Thanks to its differentiated GEO-LEO positioning and global coverage, Eutelsat is ready to become a central player in the development of the European sovereign space of tomorrow. I welcome the contemplated capital increase which will give Eutelsat the requisite financing to implement its strategic roadmap. I am grateful for the support of the French State and the ongoing commitment of our other anchor shareholders – Bharti, CMA CGM and FSP and thank them for their confidence." Eric Lombard, Minister for the Economy, Finance and Industrial and Digital Sovereignty, stated: "The French State is proud to contribute to strengthening Eutelsat's capital structure and support the company at pivotal stage of its development. This transaction reflects our strong commitment towards a major player in satellite connectivity — a strategic sector at the heart of Europe's digital sovereignty — while fostering remarkable potential for technological innovation and sustainable economic this transaction, France reaffirms its determination to build, together with the company and its European partners, a competitive, resilient, and sovereign space industry, particularly around the IRIS² program, which is a key pillar of our strategic are convinced that the company's solid fundamentals — its recognized expertise in geostationary orbit, its innovative solutions in low Earth orbit, its committed team, and its ambitious vision — are the foundations for lasting success. Eutelsat is opening a new chapter in its history, and the State will be fully present to help write it alongside the company." +++ENDS+++ THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE EU MARKET ABUSE REGULATION 596/2014, AS AMENDED AND THE UK MARKET ABUSE REGULATION. Note: Goldman Sachs Bank Europe SE, Ravel & Co. and Rothschild & Co. are acting for Eutelsat in connection with the transaction. Bredin Prat and Linklaters are acting as legal counsels to Eutelsat. About Eutelsat GroupEutelsat Group is a global leader in satellite communications, delivering connectivity and broadcast services worldwide. The Group was formed through the combination of the Company and OneWeb in 2023, becoming the first fully integrated GEO-LEO satellite operator with a fleet of 34 Geostationary satellites and a Low Earth Orbit (LEO) constellation of more than 600 satellites. The Group addresses the needs of customers in four key verticals of Video, where it distributes more than 6,500 television channels, and the high-growth connectivity markets of Mobile Connectivity, Fixed Connectivity, and Government Services. Eutelsat Group's unique suite of in-orbit assets enables it to deliver integrated solutions to meet the needs of global customers. The Company is headquartered in Paris and the Eutelsat Group employs more than 1,500 people across more than 50 countries. The Group is committed to delivering safe, resilient, and environmentally sustainable connectivity to help bridge the digital divide. The Company is listed on the Euronext Paris Stock Exchange (ticker: ETL) and the London Stock Exchange (ticker: ETL). Find out more at DISCLAIMERThe forward-looking statements included herein are for illustrative purposes only and are based on management's views and assumptions as of the date of this press release. Such forward-looking statements involve known and unknown risks. For illustrative purposes only, such risks include but are not limited to: risks related to the health crisis; operational risks related to satellite failures or impaired satellite performance, or failure to roll out the deployment plan as planned and within the expected timeframe; risks related to the trend in the satellite telecommunications market resulting from increased competition or technological changes affecting the market; risks related to the international dimension of the Group's customers and activities; risks related to the adoption of international rules on frequency coordination and financial risks related, inter alia, to the financial guarantee granted to the Intergovernmental Organization's closed pension fund, and foreign exchange risk. Eutelsat Communications expressly disclaims any obligation or undertaking to update or revise any projections, forecasts or estimates contained in this press release to reflect any change in events, conditions, assumptions, or circumstances on which any such statements are based, unless so required by applicable regulation. The information contained in this press release is not based on historical fact and should not be construed as a guarantee that the facts or data mentioned will occur. This information is based on data, assumptions and estimates that the Group considers as reasonable. No communication and no information in respect of the transaction referred to in this press release may be distributed to the public in any jurisdiction where a registration or approval is required. No steps have been or will be taken in any jurisdiction (other than France and United Kingdom) where such steps would be required. The issue, subscription for or purchase of Eutelsat Communications' securities may be subject to specific legal or regulatory restrictions in certain jurisdictions. Eutelsat Communications assumes no responsibility for any violation of any such restrictions by any person. This press release is not and should not be construed as a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017, as amended (the "Prospectus Regulation") or Prospectus Regulation as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018 (the "UK Prospectus Regulation"). In the context of the transaction, the Company will make available to its shareholders the preparatory documents and information in accordance with the French Commercial Code, including the report of the Board of Directors prior to the holding of the proposed ordinary and extraordinary general meeting. In accordance with the Prospectus Regulation and the UK Prospectus Regulation, the Company will also make available: (a) a French voluntary prospectus relating to the rights issue prepared in accordance with the Prospectus Regulation that will be submitted for the approval of the French financial markets authority (Autorité des marchés financiers) in connection with the public offering in France and the admission on Euronext Paris of the new shares issued in the rights issue, (b) an information document prepared in accordance with Annex IX of the Prospectus Regulation and to be made available pursuant to Article 1(5)(bbis) of the Prospectus Regulation relating to the admission on Euronext Paris of the new shares issued in connection with the reserved capital increases, and (c) a prospectus prepared in accordance with the Prospectus Regulation Rules of the Financial Conduct Authority ("FCA") made under section 73(A) of the Financial Services and Markets Act 2000 and to be approved by the FCA, in respect of the applications for the new shares to be issued in connection with the reserved capital increases and the rights issue to be admitted to the equity shares (international commercial companies secondary listing) segment of the Official List of the FCA and to trading on the London Stock Exchange's main market for listed respect to the member States of the European Economic Area other than France (the "Member States"), no action has been undertaken or will be undertaken to make an offer to the public of securities requiring the publication of a prospectus in any Member States. As a result, any securities of Eutelsat Communications may only be offered in Member States (i) to qualified investors, as defined by the Prospectus Regulation; (ii) to fewer than 150 natural or legal persons per Member State, other than qualified investors (as defined in the Prospectus Regulation) ; or (iii) in any other circumstances, not requiring Eutelsat Communications to publish a prospectus as provided under Article 1(4) of the Prospectus Regulation; and provided that none of the offers mentioned in paragraphs (i) to (iii) above requires the publication of a prospectus by Eutelsat Communications pursuant to Article 3 of the Prospectus Regulation, or a supplement to the Prospectus Regulation pursuant to Article 23 of the Prospectus Regulation. With respect to the United Kingdom, no action has been undertaken or will be undertaken to make an offer to the public of securities requiring the publication of a prospectus in the United Kingdom. As a result, any securities of Eutelsat Communications may only be offered in the United Kingdom (i) to qualified investors, as defined under Article 2 of the UK Prospectus Regulation; (ii) to fewer than 150 natural or legal persons, other than qualified investors (as defined under Article 2 of the UK Prospectus Regulation); or (iii) in any other circumstances falling within Section 86 of the Financial Services and Markets Act 2000 (the "FSMA"), provided that no such offer shall require Eutelsat Communications to publish a prospectus pursuant to Section 85 of the FSMA or supplement a prospectus pursuant to Article 23 of the UK Prospectus Regulation. This press release and any other materials in relation to the securities of Eutelsat Communications have not been made, and have not been approved, by an "authorised person" within the meaning of section 21(1) of the Financial Services and Markets Act 2000. As a consequence, this press release is directed only at persons who (i) are located outside the United Kingdom, (ii) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order"), or (iii) are high net worth body corporates, unincorporated associations or partnerships, trustees of a high value trust and other persons to whom it may be lawfully communicated within Article 49(2)(a) to (e) of the Order (all such persons mentioned in paragraphs (i), (ii) and (iii) collectively being referred to as "Relevant Persons"). Any securities are intended only for Relevant Persons and no invitation, offer or agreements to subscribe, purchase or acquire the securities may be proposed or made other than with Relevant Persons. Any person other than a Relevant Person may not act or rely on this press release or any provision thereof. This press release is not a prospectus which has been approved by the Financial Conduct Authority or any other United Kingdom regulatory authority within the meaning of Section 85 of the FSMA. This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered, subscribed or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities in respect thereof have not been and will not be registered under the U.S. Securities Act and Eutelsat Communications does not intend to make a public offer of its securities in the United distribution of this press release in certain countries may constitute a breach of applicable information contained in this press release does not constitute an offer of securities for sale in the United States, Canada, Australia or Japan. Goldman Sachs Bank Europe SE (« GSBE ») and Rothschild & Co ( acting exclusively for Eutelsat Communications and no one else in connection with the proposed transaction and will not regard any other person as its respective clients and will not be responsible to anyone other than Eutelsat Communications for providing the protections afforded to its respective clients in connection with the proposed transaction or otherwise, nor for providing any advice in relation to the proposed transaction, the content of this press release or any transaction, arrangement or other matter referred to of GSBE or any of their respective directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this press release (or whether any information has been omitted from this press release) or any other information relating to Eutelsat Communications, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith. 1 Market value and growth figures sourced from Euroconsult and Novaspace2 Volume Weighted Average Price over the last 30 trading days, €3.02 as at close of June 18 (Source: Bloomberg)3 The French Government to invest via Agence des Participations de l'Etat ("APE") vehicle4 After impact from passive ground segment partial disposal of €0.5bn5 At this stage, the non-concert agreement would provide the Investors in the Reserved Capital Increase a board representation, proportional to their shareholding (with half of the board composed of independent directors).6 via The Secretary of State for Science, Innovation and Technology of the United Kingdom.7 After impact from passive ground segment partial disposal.8 Including an estimated annualized adjusted EBITDA impact of €(75-80)m due to passive ground segment partial disposal.9 Before impact from passive ground segment partial disposal. View source version on Contacts Media enquiries Joanna DarlingtonTel. +33 674 521 Anita BaltagiTel. +33 643 930 Katie DowdTel. +1 202 271 Investors Joanna DarlingtonTel. +33 674 521 Hugo Laurens-BergeTel. +33 670 80 95 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
36 minutes ago
- Yahoo
Where the smart money went: Spring 2025's lessons for European VC sector
Spring 2025 marks a turning point for the European venture capital market: the turbulence of previous years is giving way to a search for new points of stability. On the surface, the overall volume of investments has held steady at around $12–13 billion for Q1, but the logic of deals and investor priorities has clearly shifted. There are fewer rounds, average check sizes have grown, and both startups and founders now face much higher standards. In this article, I outline the key trends of the spring season, analyse where the money is actually going, which segments are attracting the attention of major and niche funds, and what this means for the market, LPs, GPs, and founders. I explain why infrastructure, deep tech, and B2B have come into focus—and which previously hyped sectors are now being left behind. This perspective aims to understand how the market is building new foundations after the 'easy money' era, how the strategies of leading players are evolving, and which scenarios are becoming most likely for the second half of the year. In spring 2025, European venture capital has taken a deliberate step away from chasing the next big platform for everyone. Instead, investors are channelling capital into start-ups that own one specific pain point—and solve it better than anyone else. This change is most visible in the priorities of leading funds. When Cathay Innovation launched its $1B fund this spring, it made clear: that the capital would flow only into vertical AI applications, such as healthcare diagnostics, financial automation, or energy optimisation. The era of 'AI for everything' is over; now, investors want AI for something real. Smartfin, too, repositioned itself strictly as a backer of B2B infrastructure scale-ups, while Cherry Ventures doubled down on single-solution early-stage bets in key European hubs. Investment rounds echo the same shift. Isomorphic Labs raised €556M for AI-driven drug discovery, not a generic platform. Rapyd's €474M round was all about expertise in the toughest corner of payments compliance. Even Reneo's €600M in climate tech was grounded in focused, technical innovation. Why does this matter? Because LPs have grown tired of stories and scale for scale's sake. They want evidence: deep product-market fit, visible technical advantage, and a defensible moat. At Zubr Capital, we see this as a healthy correction. The winners will be those who choose depth over spread—delivering mastery in one vertical, not chasing every market at once. This spring, European venture capital has drawn a clear line: the era of quick-to-market wrappers and surface-level 'innovation' is over. Investors are backing startups that build true technology—from the ground up—with substantial engineering and proprietary IP at their core. The distinction is sharp. Isomorphic Labs, a UK spinout from DeepMind, raised €556m not for a generic AI platform, but for a domain-specific stack in drug discovery: new algorithms, unique data pipelines, and technical depth rooted in biology and chemistry. Investors are no longer satisfied with startups layering a pretty interface on public models—they want hard science and engineering. The same is true beyond AI. Sweden's Neko Health secured $260 million by combining proprietary hardware, sensors, and software for preventive diagnostics—redefining early health screening by building every layer in-house. France's Loft Orbital became a unicorn not by selling vision, but by delivering engineering: modular satellite buses, custom mission software, and reliable payload integration. Their latest funding will scale working infrastructure, not just prototypes. Even in creative AI, substance wins. Synthesia's $180 million round is about advancing proprietary technology for avatar and voice generation—no reliance on off-the-shelf models, but a real R&D engine. And while Quantum Motion (UK) hasn't raised a headline round this spring, its pursuit of silicon-based quantum processors—rooted in physics, not hype—demonstrates the kind of depth investors now prize. The signal is clear: capital is flowing to teams that deliver real, defensible technology. For founders, engineering depth and original IP are now the strongest currency in the European market. Spring 2025 has brought a new level of discipline to European venture capital, as thesis-driven funds moved decisively into the spotlight. Instead of spreading bets across the entire innovation spectrum, more VCs are building portfolios around tightly defined investment themes and industry problems. This trend is reshaping the funding landscape. Funds like Keen Venture Partners have launched dedicated vehicles for European defense and security tech, raising €40 million from EIF specifically for startups tackling national security infrastructure. Recent portfolio moves—EclecticIQ, Avalor AI, Rescale—underline a sharp focus on deep, vertical technologies with immediate strategic value. Other funds are taking a similar approach. 7percent Ventures now concentrates on aerospace, dual-use AI, and moonshot innovation, consistently backing engineering-heavy founders solving mission-critical problems. Their recent investments—satellite comms, cybersecurity AI, aerospace telemetry—reflect this 'vertical expertise first' logic. Lab-to-market models are also gaining ground. Chalmers Ventures has systematized partnerships with scientific teams, turning real innovations into commercial deep tech businesses—not just following buzzwords. Creator Fund backs only PhD-led start-ups in AI, life sciences, and frontier tech, while Deeptech Labs specializes in seed-stage, IP-rich companies moving from prototype to product. The message is clear: targeted capital is a sign of genuine conviction. As generalist portfolios lose ground, thesis-driven strategies are setting new standards for discipline and sector insight. For founders and LPs alike, clarity of purpose and deep industry expertise have become critical differentiators in Europe's maturing VC market. This spring, European venture capital sent a strong signal: location matters less than ever, and operational quality now outweighs geography. The largest rounds and new fund launches consistently favored execution and market traction over traditional 'hotspots.' Take Reneo's €600m cross-border round—one of the biggest in Q1 2025. Its operations span France and Spain, proving that VC now follows product readiness and strategic vision, not the location of a company's headquarters. Similarly, Milan-based Hotiday raised €5,5M from top-tier investors, breaking through Italy's usual funding ceiling thanks to strong product focus and niche traction. The fund landscape reflects the same shift. Soulmates Ventures closed a €50M fund for sustainability startups across Central and Eastern Europe, while 4Founders Capital launched a €44M fund for Spanish and Southern European founders—emphasising local expertise and regional commitment. Defiant's $30M fund connects Western and peripheral European markets, and Voima Ventures' €100M Fund III targets deep tech across the Nordics and Baltics. Even previously secondary regions—Benelux, DACH, Southeast Europe—are seeing increased activity, as new funds target talent and technical strength wherever they emerge. The bottom line: investors now assess startups by execution, product, and real market potential, regardless of location. For founders, this means access to capital is more meritocratic than ever. For the ecosystem, it signals a Europe-wide race for quality—where substance, not geography, wins. Spring 2025 confirmed that infrastructure is now at the heart of Europe's tech agenda—not just for performance, but for resilience, control, and sovereignty. Governments and VCs are aligned: funding no longer just chases growth, but prioritizes the foundational layers powering AI, data, automation, and security. This shift is massive in scale. The EU's InvestAI program launched with €200 billion to build core AI infrastructure—giga-factories, sovereign clouds, and advanced chips. France added €109 billion for AI leadership, and the European Technological Competitiveness Initiative is rolling out over €10 billion into chips, cybersecurity, and cloud through fund-of-funds structures. Private capital is following suit. Investments in sovereign data pipelines, chip design, and next-gen autonomy are on the rise. Established players like Graphcore (UK) embody Europe's silicon ambitions, while stealth-mode AI hardware startups are quietly closing large rounds. Industrial infrastructure is another hotbed: FLOW X (Romania) stands out for integrating deep analytics and automation into industrial processes—moving far beyond dashboards. Funding is now targeting digital twins, industrial IoT, and process automation, making deep tech synonymous with infrastructure. Cybersecurity has become a national priority. Deals now focus on architecture for industrial and state security, with companies like Unseen (UK) pioneering AI-native protection that moves beyond traditional firewalls. Zero-trust systems, sovereign clouds, and industrial cyber platforms are quietly attracting both private and state capital. The message is clear: in 2025, infrastructure is no longer a supporting function—it's the main event. For investors and founders, building and owning the tech backbone of Europe is the highest-value play on the market. Spring 2025 has redefined the European VC landscape: investors now demand focus, technical depth, and real traction. This new discipline is making the market quieter but stronger, with capital gravitating toward deep tech, infrastructure, and clearly defensible niches—regardless of geography. Looking ahead, we expect this logic to hold. The second half of 2025 is likely to bring continued selectivity, with larger rounds flowing to proven teams and sectors solving fundamental problems—AI infrastructure, climate, industrial tech, and security. Government and private capital will keep reinforcing each other, driving further consolidation and accelerating the shift from hype to substance. For founders and investors, the message is clear: building real technology and demonstrating market resilience will remain the keys to unlocking capital and long-term success. At Zubr Capital, we see a maturing market—one poised not just to survive, but to lead the next cycle of European innovation. Oleg Khusaenov is CEO and founder of Zubr Capital Investment Сompany "Where the smart money went: Spring 2025's lessons for European VC sector" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Bloomberg
41 minutes ago
- Bloomberg
Diesel Passes $105 a Barrel on Mideast Worry and Key Spreads Rip
By and Alex Longley Save Diesel soared for a fifth day — topping the equivalent of $105 a barrel in Europe — with spreads that traders view as measures of market strength spiraling higher. Concern about imports from the Middle East, where Israel's conflict with Iran is roiling wider oil markets, is compounding what was already a tight market. Europe has become increasingly reliant on the region's fuel since losing Russian supply.
