European seed rounds are ballooning, with AI startups like Yann LeCun's AMI Labs securing $1 billion at a $3 billion valuation. Philipp Moehring, partner at microfund Tiny VC, tells Sifted's Amy Lewin that such mega-rounds aren't yet standard across Europe, though he finds the trend concerning. Moehring co-founded Tiny VC with Andy Chung nearly a decade ago to invest in Europe's hottest startups before others.

Tiny VC's portfolio includes 450+ companies like self-driving pioneer Wayve, AI video creator Synthesia, legal tech Lawhive, and workflow automation platform N8n. Unlike traditional VCs, Tiny doesn't join boards, lead rounds, or court media attention. The firm raised its third £53 million fund in 2023 and was named 20VC's 'top European microfund' earlier this year. This approach has allowed Tiny to maintain flexibility in its investment strategy.

On the Sifted podcast, Moehring discusses how venture capital will evolve over the next decade, when Tiny takes money off the table, and why young founders often excel. He also addresses anxiety-inducing LinkedIn posts and the tech industry's cultural shifts. Moehring's insights reflect growing concerns about valuation inflation in Europe's startup ecosystem while highlighting the advantages of staying nimble in an increasingly competitive market.