Sonali de Rycker, general partner of Accel and one of the most influential venture capital in Europe, is optimistic about the perspectives of the continent in AI. But it is wary of the regulatory overtaking that could hammer.
During a techcrunch evening strictlyvc earlier this week in London, Rycker reflected in the place of Europe in the world race on AI, balancing optimism with realism. “We have all the pieces,” she told those who gathered for the event. “We have the entrepreneurs, we have the ambition, we have schools, we have the capital and we have talent.” All that is missing, she argued is the ability to “unleash” this large-scale potential.
The obstacle? The complex regulatory landscape of Europe and, in part, its pioneering but controversial law of artificial intelligence.
De Rycker has recognized that regulations have a role to play, especially in high -risk sectors such as health care and finance. However, she said that she feared that the wide range of AI of AI and that the fines will be potentially stifling to dissuade innovation at the very moment of European startups need space to iterate and develop.
“There is a real opportunity to make sure that we are going quickly and that we approach what we are capable of,” she said. “The problem is that we are also faced with contrary winds on regulations.”
The AI Act, which imposes strict rules on requests deemed “at high risk”, from credit notation to medical imaging, increased red flags among investors like Rycker. Although the objectives of ethical AI and consumer protection are laudable, it fears that the net can be flowed too wide, potentially discouraging experimentation and entrepreneurship at an early stage.
This emergency is amplified by the change of geopolitics. With the American support for the defense and economic autonomy of Europe under the direction of the current Trump administration, Rycker considers this moment as a decisive moment for the EU.
“Now that Europe must manage [for itself] In several ways, “she said,” we have to be self-sufficient, we must be sovereign. “”
This means unlocking the full potential of Europe. De Rycker highlights efforts such as the “28th regime”, a framework to create a single set of rules for companies across the EU, as crucial to create a more unified region adapted to startups. Currently, the mishmas of labor laws, licenses and corporate structures in 27 countries create friction and slows down progress.
“If we were really a region, the power you could release would be incredible,” she said. “We would not have these same conversations on Europe for technology.”
In the opinion of Rycker, Europe slowly catches up, not only in innovation but in its adoption of risk and experimentation. Cities like Zurich, Munich, Paris and London are starting to generate their own self-reinforced ecosystems thanks to high-level university establishments and a growing basis of experienced founders.
Accel, for its part, has invested in more than 70 cities across Europe and Israel, giving De Rycker a first row seat with the fragmented but flourishing technological landscape of the continent.
However, Tuesday evening, she noted a contrast that striking with the United States in terms of adoption. “We see much more propensity to customers to experiment with AI in the United States,” she said. “They spend money for these types of speculative companies in the start -up phase. This steering wheel continues. “
Accel’s strategy reflects this reality. Although the company has not supported any of the main companies of fundamental AI models like Openai or Anthropic, it has rather focused on the application layer. “We feel very comfortable with the application layer,” said Rycker. “These fundamental models are at high intensity of capital and do not really look like companies supported by a company.”
Examples of promising bets include synthesis, a video generation platform used in business training and Speak, a language learning application that recently jumped to an evaluation of a billion dollars. De Rycker (who dodged questions about Accel’s reported talks Another big name in AI), see it as early examples of how AI can create entirely new behaviors and models.
“We are expanding the total Addressable Markets at a rate that we have never seen,” she said. “It looks like the first days of the mobile. Doordash and Uber were not only mobilized websites. These are new paradigms. “
In the end, Rycker considers this moment as a unique challenge and opportunity. If Europe is based too much on regulations, this may suffocate innovation which could help it to compete globally – not only in AI, but on the entire technological spectrum.
“We are in a supercycle,” she said. “These cycles do not come often, and we cannot afford to be on a leash.”
With the geopolitical uncertainty that increases and the United States in search of the interior, Europe has no choice but to bet on itself. If he can find the right balance, from Rycker thinks he has everything he has to drive.
Questioned by a participant what the founders of the EU can do to be more competitive with their American counterparts, she did not hesitate. “I think they are competitive,” she said, citing ACCEL companies, including Supercell and Spotify. “These founders, they do not seem different.”
You can catch the full conversation with Rycker here:
