For nearly a decade, the transatlantic venture capital playbook was predictable: European funds handled the risk at the seed stage, and top-tier Silicon Valley firms swooped in with massive checks at Series B or C once the metrics were proven. That era appears to be ending. Andreessen Horowitz (a16z), armed with $15 billion in fresh capital raised in 2025, is dismantling this hierarchy by aggressively targeting European startups at their earliest inception points.
The firm is no longer content to wait for growth metrics. Instead, it is deploying a ‘boots on the ground’ strategy designed to spot potential unicorns before local investors can even print the term sheets. This shift was underscored recently when a16z led a $2.3 million pre-seed round for Dentio, a Swedish AI startup focused on dental administration. While the check size is a rounding error for a firm with billions in assets under management, the signal it sends to the European ecosystem is deafening: a16z is open for business at day zero.
Why is a16z changing its European investment strategy now?
The primary driver is a realization that waiting for maturity is becoming too expensive and competitive. By the time a European standout reaches Series B, the valuation premium is substantial. To secure ownership in the next generation of category-defining companies, a16z is moving upstream.
Gabriel Vasquez, a partner at a16z, has become the face of this pivot. Vasquez has been aggressively courting the Nordic ecosystem, reportedly making nine trips to Stockholm in a single year to scout deals. This isn’t remote due diligence; it is a high-frequency physical presence designed to build relationships before founders even incorporate.
Vasquez has been quoted noting that the firm dedicates significant time to understanding specific markets, with a particular focus on tracking ecosystems like SSE Labs at the Stockholm School of Economics. The strategy is clear: embed the firm into the university and incubator level to capture talent at the source.
How does the ‘Global Scouting Network’ actually work?
One of the logistical challenges for a US-based firm investing at the pre-seed stage is the sheer volume of noise. To filter this, a16z has constructed what industry insiders call a ‘global scouting network.’ Rather than relying solely on visiting partners, the firm has deputized prominent local founders to act as scouts.
Notable figures in this network include Fredrik Hjelm, CEO of the micro-mobility giant Voi, and Johannes Schildt, CEO of the digital health unicorn Kry. By leveraging founders who have already navigated the path to scale, a16z gains a layer of operational diligence that pure financiers lack. These scouts are embedded in the local fabric, hearing the whispers about promising engineers and spin-outs long before they hit the radar of a traditional VC database.
This network allows a16z to operate with the agility of a local angel investor while wielding the balance sheet of a global heavy hitter. It is a sophisticated arbitrage of information, aimed at identifying the ‘next European unicorn’—a goal that seems increasingly attainable given the region’s recent performance.
Is Stockholm the new battleground for early-stage AI?
While London and Berlin have historically dominated the headlines, Stockholm has emerged as a critical node in a16z’s strategy, particularly for AI. The firm’s investment in Dentio is indicative of a broader trend where Nordic pragmatism meets generative AI application.
The timing is auspicious. Despite broader economic headwinds, the European ecosystem remains resilient. In January 2026 alone, the region minted five new unicorns, including Aikido Security, which hit a $1 billion valuation led by DST Global, and Harmattan AI, valued at $1.4 billion. These exits and up-rounds validate the thesis that Europe is not just a secondary market but a primary engine for deep tech innovation.
Furthermore, the firm’s political connectivity is evolving alongside its investment thesis. Former a16z partner Sriram Krishnan was recently appointed Senior White House Policy Advisor on AI. While this removes him from day-to-day deal flow, it strengthens the firm’s macro-level understanding of AI regulation, a crucial asset for European founders looking to navigate the complex US regulatory landscape.
What impact will this have on local European VCs?
The entry of a16z into pre-seed rounds places immense pressure on established European funds like Notion Capital and Creandum. Historically, these firms enjoyed a period of exclusivity at the early stage. Now, they face a competitor that can offer founders not just capital, but an immediate bridge to the US market and a brand halo that simplifies future recruiting.
This competition will likely force European funds to move faster and potentially drive up early-stage valuations. For founders, this is a net positive: they gain earlier access to global networks and potentially better terms. For local VCs, it is an existential challenge to prove their value-add beyond the check.
What This Really Means
This is not merely about a16z diversifying its portfolio; it is a calculated move to corner the market on European technical talent before it becomes expensive. By entering at the pre-seed stage, a16z is effectively attempting to price local VCs out of the most promising deals, turning European funds into follow-on investors rather than kingmakers. This signals a maturation of the European tech scene where the distinction between ‘Silicon Valley’ and ‘Global Tech’ is finally dissolving, but it also warns local investors that their home-field advantage is evaporating. Expect to see a bifurcation in the market: founders will either take the ‘American fast-track’ or stick with local partners, and the choice will define the trajectory of the next decade of European innovation.
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