Sifted - The next French unicorns

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Chinese AI startup Monica has raised alarm bells throughout the US and Europe over the past week, with some branding it "another DeepSeek moment". 

Videos uploaded to social media site X show the company's AI agent Manus rapidly building websites, designing games and planning vacations. 

But what does it mean for Europe's AI agent startups? Some experts tell Sifted that Europe "risks being left behind in the race for AI leadership" while investors are keeping their cards close to their chest.

Elsewhere today:

• The AI tools founders say are actually useful
• Are these companies the next French unicorns?
• EV startup Arrival shuts down operations, lays off staff after sale plan collapses

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⚡️ Electric vehicle startup Arrival has shut down operations and made all but one member of staff redundant after a planned sale of the beleaguered company collapsed.

💸 London-based payments fintech Curve close to halved pre-tax losses according to its latest financial results published yesterday.

🌯 Deliveroo is the latest speedy delivery firm to retreat from international markets, after shutting down its Hong Kong operation.

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🤖 Manus, the AI model developed by Chinese company Monica, caused a stir last week, leaving investors questioning the future of Europe’s AI agents startups. 

🦄 These 10 French startups could be the country’s next unicorns.

❗Founders, these are the AI tools you should be using.

🎁 Trump is a gift to European AI, according to investor Rasmus Rother and entrepreneur Robert Kilian, who argue the US president’s controversial agenda may benefit the EU’s tech ecosystem.

Stand out on Sifted’s DACH & CEE Leaderboard

Apply to feature among the fastest-growing startups on our DACH & CEE Leaderboard for 2025. Don’t miss out this year — apply below for the chance to gain unparalleled exposure and recognition of your startup’s success. 

Helsinki-based Valo Therapeutics, which develops novel immunotherapies in cancer and infectious diseases, raised €13m in funding. Indaco Venture Partners and CDP Venture Capital SGR led the round and were joined by investors including Fondazione ENEA Tech e Biomedical. It raised an additional €6m from investors supported by Freeman Road.

Kraków, Poland-based Reality Games, the gaming studio behind Monopoly World which allows users to trade real-world properties, raised €4.3m in funding from investors including Unfold VC, Republic and Acquinox Capital.

Copenhagen-based PhaseTree, an AI-powered simulation platform for sustainable material discovery, raised €3m in funding. Heartcore Capital led the round.

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