Dear hustlers, founders, operators and visionaries,

Startups are constantly told to innovate, but maybe Amazon took it a bit too far? Italian prosecutors say the company evaded €1.2B in taxes using its algorithm to “optimize” VAT payments—or rather, avoid them. While founders struggle with bureaucracy, Amazon seems to have AI-powered loophole detection. Maybe it’s time to pivot into tax-tech? In the meantime: Follow the Gradient and stay tuned!

🫶🏼 Melanie & Christian

PS: Has this e-mail been forwarded to you? Sign up here.

Your talk track for this week’s cocktail AI party

The AI Action Summit: Real impact or just talk?

Last week’s AI Action Summit in Paris split opinions. Supporters hailed it as a turning point for Europe, with €200B in AI investments and a shift toward innovation over regulation. Critics, however, dismissed it as political show with no real action plan, noting that the US and UK refused to sign its declaration. Wake-up call or will Europe hit the snooze button once again? Time will tell.

EU scales back AI regulation

The EU is easing AI rules, scrapping a liability directive and limiting new reporting requirements. Digital chief Henna Virkkunen insists this is about boosting competitiveness, not giving in to US pressure. The AI Act still enforces strict rules on high-risk AI, despite Big Tech pushback, but Brussels says it remains committed to balancing innovation with regulation.

Europe’s open source AI bet

The EU is investing €37.4M in OpenEuroLLM, an open-source AI model covering all EU languages. While it’s meant to reduce reliance on US and Chinese tech, critics argue a sprawling 20+ partner collaboration may lack the speed and focus of private AI firms like Mistral and that the funding is a fraction of what Big Tech spends. Supporters say it’s a crucial step toward AI sovereignty— will it deliver?

What do you meme?

Food for thought

OpenAI’s Europe expansion: Brain drain or future boost?

OpenAI’s arrival in Munich and Zurich has startups worried about losing top talent to Big Tech salaries. While it’s a challenge now, the pain could be temporary—when Google set up in Zurich 20 years ago, it initially pulled talent from startups but later helped expand the ecosystem. If history repeats itself, Munich and Zurich may struggle today but benefit in the long run.

Does the name of your VC matter for hiring?

Yes—a lot. A 2022 AngelList study found:

→ 30% more candidate interest when a top-tier VC was highlighted
→ 67% more applications, especially for early-stage startups
→ No effect when only recent funding was mentioned

It’s who invested, not just the money. Top VCs attract talent, reinforcing their edge: brand → talent → outcomes → brand. For founders, VC choice isn’t just about capital and founder fit—it’s a recruiting tool.

Do you really need a big team to win?

Where do unicorn founders come from?

Not from business schools or consulting firms. A study by Endeavor analyzing 200 unicorn founders found they:

→ Worked at a startup before founding their own
→ Had ~10 years of experience, mostly in product & engineering
→ Lived, worked, or studied abroad

So the real billion-dollar blueprint is: Work at a startup, learn to build, and see the world.

Mark your calendar

Sweden

Tech Arena in Stockholm, 20-21 February [Program]

Sifted’s Mimi Billing will be there, get in touch if you’re around!

Switzerland

Moin Startup Camp in Rapperswil, 20 February [Program - here you can still get 20% off the ticket]

Online 

Sifted Talks: Raising, regulation and risk: What’s next for deeptech?, 19 February 1pm CET [Register here]

Did we miss an important event? Let us know by replying to this email.

Do you like what we do at Follow the Gradient? Help us grow this community and share a like and add a comment to our LinkedIn post that just went live:

Smart hack

Most companies mistake a goal or a to-do list for a strategy. A real product strategy is a set of reinforcing choices that make you hard to copy.

The Product Strategy Canvas by Pawel Huryn helps you define:
🚀 Vision: Why should people care?
🎯 Market: Who are you really building for?
💡 Value: What problem do you uniquely solve?
📉 Trade-offs: What won’t you do?
📊 Success: What key metrics matter?
🛠 Capabilities: What resources do you need?
📈 Growth: How will you scale?

Remember: If your strategy could be copied, it’s not a strategy—it’s a wish list.

One good read

The Unicorn Boom Is Over, and Startups Are Getting Desperate by Katie Roof

Join the entrepreneurial journey

Are you ready to take your first steps into the startup ecosystem or seeking an exciting new opportunity? Below is a curated list of startup job openings across Europe for you to explore.

Internships

Intern R&D Strategy [📍Munich], Energy Tech, Marvel Fusion [Apply]
Financial Planning & Analysis [📍Berlin], Transportation, Blacklane [Apply]
Tech Intern – Development & Customer Solutions [📍Hamburg], B2B SaaS, Procuros [Apply]
Internship Global Product Management [📍Berlin], CleanTech, 1KOMMA5° [Apply]
Intern [📍Berlin], AI, Text Cortex AI [Apply]

We assume you use AI already to prep for your interviews, if not, take this as an inspo.

Customer Success

Head of Customer Success [📍London], AI, Synthesia [Apply]
Customer Success Manager [📍Berlin], SaaS, Miss Moneypenny [Apply]

HR & Finance

Payroll Automation & Data Specialist [📍Remote], HR, Remote [Apply]
HR Manager [📍Hamburg], Infrastructure, Kubermatic [Apply]

Marketing & Comms

Global Partner Marketing [📍London], FinTech, Stripe [Apply]
Head of Growth [📍Helsinki], 3D, Teleport [Apply]
Affiliate Marketing Manager [📍Paris], Gaming, Sorare [Apply]
Sr. Marketing Campaigns Manager, EMEA [📍Amsterdam or London], AI, Databricks [Apply]

Sales

Senior Sales Representative[📍Berlin], Health Tech, Kyan Health [Apply]
German-speaking Account Executive [📍Stockholm], Sales Tech, Funnel [Apply]

Strategy & Ops

R&D Project Manager [📍Madrid], AI, SENSIA [Apply]

Product & Tech

Member of Design Staff - Product [📍Stockholm], FinTech, Bluebook [Apply]
Product Manager [📍 Lausanne, Switzerland], Semiconductor, Corintis [Apply]
Senior Backend Engineer [📍Zurich], Cleantech, Norm [Apply]

Final words — take what you need