Startupnews KW 10 - 2025

Radical Dot receives 2.7 million euros. Proxima Fusion presents concept for commercial fusion power plant. Netto opts for invisium. Alexander Dokters joins Rivean Capital. Epoch Biodesign with 18.3 million US dollars Series A. Timegrip acquires Software4You. IDnow receives strategic majority stake from Corsair Capital. Conversion Maker presents data protection-compliant AI solution for SMEs. Alpine Eagle successful with 10.25 million euros seed.

Venture Capital & Rounds

Needle successful with 2.2 million dollar round

Needle, an AI-powered platform for search and agent development, has raised 2.2 million dollars in a funding round led by 468 Capital and Presight Capital. The funds will be used to expand the engineering team, strengthen the core technology and accelerate time to market. The platform enables companies to quickly and efficiently access data from various sources such as Gmail, Confluence and Dropbox to implement AI applications without in-depth technical knowledge. Needle addresses the problem of inaccessible data in legacy systems and facilitates the adoption of RAG technology, allowing organizations to reap the benefits of AI.

Radical Dot secures €2.7 million for innovative plastics recycling technology

Munich-based startup Radical Dot has raised 2.7 million euros in an oversubscribed pre-seed financing round. The round was led by UVC Partners and Visionaries Tomorrow and supported by well-known climate and business leaders. The company is developing a novel, energy-efficient chemical recycling technology that converts mixed plastic waste into competitive chemical raw materials. This is intended to promote a sustainable circular economy and help reduce CO₂ emissions in the chemical industry. The funds will be used to build a prototype at the Technical University of Munich to further develop and scale up the technology.

Epoch Biodesign secures $18.3 million in Series A funding to scale enzymatic recycling

London-based biotech startup Epoch Biodesign has raised $18.3 million in an oversubscribed Series A funding round to scale its pioneering enzymatic recycling technology. The round was led by Extantia, with participation from Inditex (Mundi Ventures), Lowercarbon Capital, Happiness Capital, Kibo Invest, Day One Ventures, KOMPAS VC and other investors. Epoch plans to use the funds to build its first biorecycling plant, which is scheduled to go into operation in 2025 and will be able to recycle 150 tons of plastic waste per year.

Alpine Eagle successful with 10.25 million euros seed

According to Linkedin, the Munich-based defense technology start-up Alpine Eagle GmbH has raised 10.25 million euros in a seed financing round led by IQ Capital, with participation from HTGF, Expeditions Fund, Sentris Capital and existing investors General Catalyst and HCVC. Founded by Jan-Hendrik Boelens (formerly Airbus, Volocopter, Quantum Systems) and Timo Breuer (formerly Microsoft Research, Fraunhofer), Alpine Eagle is developing Sentinel, a hardware-independent platform for detecting and neutralizing hostile drones. The funds will be used for the further development of Sentinel, the expansion of the commercial teams and international expansion to counter threats posed by autonomous warfare. The German Armed Forces and other government organizations are already among the customers.

Further news

Proxima Fusion presents concept for commercial fusion power plant

The Munich-based startup Proxima Fusion has presented "Stellaris", the world's first integrated concept for a commercial fusion power plant. The high-field stellarator design combines physical performance with technical requirements and is intended to enable continuous, safe and cost-efficient energy generation. The company plans to build the Alpha demonstration stellarator by 2031, which for the first time will generate more energy than it consumes. The project is based on findings from the Wendelstein 7-X experiment and is being developed with the support of leading research institutes and industrial partners. Stellaris is regarded as a significant step towards an economically viable, clean and virtually inexhaustible source of energy.

Conversion Maker presents data protection-compliant AI solution for SMEs

Offenburg-based startup Conversion Maker is launching Pryvet, a solution that enables companies to use AI models such as ChatGPT or Claude securely and in compliance with data protection regulations. Pryvet pseudonymizes sensitive information in AI prompts before it is processed, thereby protecting sensitive data from unwanted access. The solution is designed to help medium-sized companies use AI technology efficiently without having to set up their own infrastructure. Managing Director Michael Witzenleiter emphasizes that Pryvet offers a simple and secure way to use innovative AI models while meeting data protection requirements.

Netto Marken-Discount relies on automated load carrier control with invisium

The startup invisium is launching a project partnership with Netto Marken-Discount and introducing its VisionPort multifunctional scanning system in two of the discounter's central warehouses. The technology records reusable load carriers such as pallets or boxes as they pass through a warehouse door in real time, eliminating the need for stocktaking and reducing costs. VisionPort uses AI-supported image processing to precisely detect and track load carriers without affecting logistics processes. Following a successful test phase, the collaboration is to be expanded. The system was recognized as one of the inVISION Top Innovations 2024 and is funded by the German Federal Ministry of Education and Research.

Personnel

Alexander Dokters returns to Rivean Capital as Director

Alexander Dokters has joined the Frankfurt team of Rivean Capital, a European private equity investor, as a Director. In his new role, he will focus on investment opportunities, transactions and the management of portfolio companies. Dokters has extensive experience in the private equity sector, including working at Equistone Partners Europe and IK Partners. He was already a Senior Associate at Rivean Capital from 2013 to 2016. With his return, the company aims to further strengthen its presence in the DACH region.

M & A

Majority stake in IDnow sold to Corsair Capital

IDnow, a European provider of digital identity verification, announces the acquisition of a majority stake by the investment company Corsair Capital. Corsair, which specializes in payment transactions, software and business services in the financial services sector, has already been an investor since 2019 and is now increasing its commitment. The aim of the investment is to further accelerate IDnow's growth, expand its European market leadership and tap into new markets through additional acquisitions and an expanded solution portfolio. IDnow CEO Andreas Bodczek sees the deepened partnership as an important step towards the continuous development of the platform and securing the company's leading technological position in the industry.

Timegrip acquires Software4You

The Danish workforce management specialist Timegrip has acquired the German software provider Software4You, thereby strengthening its position in the HR software market. The integration of Software4You's HR controlling and cost planning software 4PLAN HR with Timegrip's existing workforce management solutions creates a more comprehensive HR suite that enables companies to optimize workforce planning, budgeting and analysis. The acquisition is part of the buy-and-build strategy of Timegrip, which has been part of Main Capital Partners' portfolio since 2022, and is expected to expand the company's geographic reach and provide AI-powered, automated solutions for more efficient workforce management.

Reports & knowledge

Market for critical battery materials growing at 10.6% CAGR until 2035

Demand for critical materials for lithium-ion batteries (LIBs) is expected to increase by a factor of three by 2035, with an annual growth rate of 10.6%, according to the new IDTechEx report "Critical Battery Materials 2025-2035". Demand for manganese and nickel is growing particularly strongly, while other materials such as copper and cobalt are growing more slowly. The increasing demand poses challenges in terms of the supply of raw materials, as global production cannot keep pace with the growing demand from the battery industry. The refining of these materials, particularly in China, poses geopolitical risks, which is why diversification and vertical integration initiatives are becoming increasingly important. The development of advanced extraction and processing technologies is seen as key to overcoming these challenges. Read the full IDTechEx report here.

Destatis: Figures on gender paygap and research expenditure

Research expenditure in Germany continues to rise

In 2023, €129.7 billion was invested in research and development in Germany - an increase of 7% compared to the previous year. The share of expenditure in gross domestic product (GDP) thus remained stable at 3.1% and exceeded the EU target of 3% for the sixth time in a row. At 88.7 billion euros, industry accounted for the largest share, while universities and non-university research institutions also recorded rising investment. Expenditure was particularly high in the natural sciences and mathematics, with physics, astronomy and biology accounting for the largest share.

Gender gap in the labor market continues to decline

The gender gap in the labor market fell to 37% in 2024, down 2 percentage points on the previous year. The main reason for this was the decline in the unadjusted gender pay gap, which fell from 18% to 16%, as women's gross monthly earnings increased more than men's. Differences in paid working hours (18 %) and labor force participation (9 %), on the other hand, remained constant. A long-term comparison shows a positive trend: within ten years, the gender gap in the labor market has decreased by 8 percentage points, which indicates an alignment of the earnings and employment situations of women and men.