In recent years, discussions around artificial intelligence have predominantly centered on the capabilities of models—bigger, faster, smarter. Attention then shifted to agents, systems designed to autonomously plan, reason, and act. However, true advancements in AI utility emerge at a higher level: Skills. Unlike models or agents, Skills are the practical layer where AI becomes truly operational and impactful in real-world applications. A Skill is distinct; it isn't just a prompt, chatbot, or agent—it represents the actionable capacity of AI to deliver value.
Artificial Intelligence (AI) might seem like a concept from sci-fi films such as Robocop or The Matrix, but its presence in our daily lives is longstanding. From streaming platforms offering recommendations after a movie ends to e-commerce sites suggesting related products, AI quietly powers these experiences. Digital advertisements too leverage sophisticated machine-learning algorithms to boost engagement and conversions. For years, businesses have employed AI-driven automation and machine learning to enhance operations and processes. However, the rise of generative AI signals a new chapter in AI’s evolution, promising even more transformative impacts ahead.
I've often observed that most products on the market aren't groundbreaking innovations but rather reflections of our everyday behaviors, habits, and concerns. Design tends to follow these patterns. Consider this: many people already consult ChatGPT regularly for health-related advice—not just once in a while, but as a trusted second opinion, a confidential sounding board, or even a source of emotional support without fear of judgment. Once these behaviors become consistent, companies shift from merely watching to actively developing solutions tailored to these needs.
The AI sector excels at self-assessment through benchmarks and performance metrics that signal advancements with each new release. However, a crucial question lingers: Which AI model truly offers a better user experience? Which outputs gain genuine human trust? And which AI can confidently be deployed in front of clients, staff, or the public? Filling this crucial gap is LMArena, a company that has recently attracted $150 million in a Series A funding round, valuing it at $1.7 billion. This demonstrates a shift towards evaluating AI beyond just numbers, focusing more on practical effectiveness and trustworthiness in real-world applications.
Europe's concentrated investment surge in AI technology is sidelining crucial innovation in women's health, known as femtech. While AI attracts massive venture capital, femtech funding has sharply dropped from €1.89bn in 2021 to €1.1bn in 2022, reflecting broader market shifts and changing investor interests. This disparity threatens to undermine health advancements for half of the population. The capital rush towards AI coincides with a femtech funding crisis influenced by market conditions, reduced investor risk appetite, and sector maturation.
Europe's future in deep tech depends on changing investment approaches. Traditional venture capital struggles to provide the long-term funding required for deep tech innovation. Despite Europe's strong scientific research, the focus on short-term gains hinders early commercialization and growth in the sector. Startups contribute positively, but Europe still trails behind the US and Asia in translating lab breakthroughs into market-ready technologies. To stay competitive, Europe must promote advances in AI, robotics, synthetic biology, and quantum computing.
As we progress into the latter half of 2025, the global technology sector faces a complex blend of uncertainty and opportunity. Investment dynamics in emerging tech startups vary significantly, with growth seen in cities like Beijing, Los Angeles, and Tokyo, contrasted by stagnation in Paris and declines across much of Europe. Concurrently, rapid technological advancement underscores the critical importance of technology optimisation and transformation, as innovation continuously drives further innovation, shaping a challenging yet promising landscape for tech enterprises.
Denmark is set to establish itself as a leader in quantum computing with an ambitious project to build the world's most powerful quantum computer. Supported by €80 million from the EIFO and the Novo Nordisk Foundation, the initiative, named QuNorth, will launch the Nordic region's first "Level 2" quantum system. Microsoft and California-based Atom Computing are collaborating on the Magne system, named after Thor's mythological son. Microsoft will provide its Azure Quantum software, while Atom Computing will supply hardware using its neutral atom technology. The Magne system is anticipated to feature around 50 logical qubits, marking a significant advancement in quantum technology.
London-based insurtech startup Laka has successfully raised $10.4 million in a Series B funding round. The company specializes in "collective" insurance for bicycles and e-scooters, where customers pay a monthly variable fee tied to the total number of claims made by the community. This model encourages fewer claims, leading to lower costs for all users. Laka aims for profitability by the end of next year and sells insurance both directly and through partners like Decathlon, Brompton Bikes, Gazelle, and Ribble Bikes.
Our Funding Focus series delves into the flow of investments within the European tech ecosystem. Recently, we examined major funding rounds in the Netherlands; now, our attention turns to Europe’s emerging fusion energy startups. In the first half of this year alone, European fusion companies secured an unprecedented €290 million, surpassing last year's total of €185 million. This surge in venture capital reflects strong confidence in fusion technology’s potential to provide nearly limitless clean energy. The leading investors and companies are centered in Munich, marking a major milestone for the sector, according to Dealroom data.