As 2025 unfolds, investors across Central and Eastern Europe (CEE) are zeroing in on transformative technologies reshaping industries, with AI at the center of the storm. IT Logs reached out to leading CEE venture capitalists to discuss their priorities for the next 12 months.
Some of the insights reveal a clear focus on AI-driven solutions, industrial transformation, and defense technologies tailored for a volatile geopolitical environment.
AI at the helm of industry disruption
Borys Musielak, managing partner at Poland-based SMOK VC, highlights the sweeping impact of AI across diverse sectors. He explains that alternative food companies are adopting AI-driven automation to oversee production with minimal human input. This shift not only reduces operational costs but also ensures consistency in scaling production.
“Innovation is reshaping industries across the board,” Musielak says. “Alternative food companies are using AI to automate production with minimal human involvement.”
In software development, AI is bridging the gap between rapid iteration and reliability. Code verification tools now ensure that software generated by large language models (LLMs) aligns with intended functionality. This is particularly crucial in an era where LLMs increasingly handle tasks that previously required skilled human engineers.
AI’s influence also extends to traditional industries like energy, logistics, and real estate. Musielak notes that new AI-driven tools are displacing decades-old reliance on Excel, offering smarter, more efficient alternatives. “In traditional sectors like energy, logistics, and real estate, new AI tools are replacing Excel, offering smarter and more efficient solutions,” he observes.
As geopolitical tensions rise, European defense technology is also undergoing a transformation of its own. Musielak emphasizes that the focus is shifting from dual-use technologies to specialized military applications. “European defense tech is focusing on advanced combat systems, prioritizing dedicated military applications over dual-use technologies,” he tells IT Logs.
Betting on founders and efficiency
Karol Lasota, principal at Inovo VC, brings a different perspective, one grounded in founder ambition and adaptability. He acknowledges the unpredictability of technological and societal shifts but believes that betting on bold, visionary founders remains the safest strategy.
“No one knows which way technology, social changes, etc. will go these days,” Lasota says.
“Every week, something new and groundbreaking comes out, such as the recent DeepSeek, which has greatly changed the perception of many things as true open source with such performance and then based on that many people would have to change their prediction. You can bet on what will be the next big thing, but what’s constant with us is that we just want to bet on wildly ambitious founders from the region,” he emphasizes.
According to him, small teams of two to three founders can now deliver tenfold output compared to previous generations, thanks to advancements in AI and software productivity tools. “I think such teams will disrupt all kinds of more traditional industries with just more efficiency,” he predicts.
Industrial transformation in a post-globalized world
In a recent op-ed for IT Logs, Bogdan Iordache, general partner at Bucharest-based Underline Ventures, discussed the evolving industrial manufacturing landscape. He explains how the dominance of globalization over the last five decades is being replaced by a focus on local productivity, fueled by intelligent automation and other technological breakthroughs.
“In the world of industrial manufacturing, the last 50 years have been dominated by globalization – the transition of manufacturing to countries with lower salaries, alongside continuous supply chain optimization,” Iordache explains. “But things are changing, and the latest technological developments, geopolitical trends, and Gen Z culture are accelerating a deep transformation of the manufacturing landscape.”
Key innovations driving this change include industrial co-pilots, digital twinning, and integrated factories. These advancements enable greater autonomy and precision, bridging the gap between digital and physical workflows. “In 2024, we have connected with some of the best industrial tech founders, investors, and experts, and have identified some of the key use cases that are accelerating the transformation of industrial manufacturing,” Iordache added, noting that this will likely continue to be a trend in 2025 as well.
Furthermore, from AI-powered alternatives to traditional systems to specialized military technologies and localized industrial solutions, the year ahead promises to be one of accelerated transformation, with European investors ensuring they remain actively involved in discovering the next potential unicorn.
