9 success factors for a European TrustTech startup

“Digital trust is the expectation that digital technologies and services – and the organizations providing them – will protect all stakeholders’ interests and uphold societal expectations and values,”¹ states one widely quoted document. This expectation underpins a burgeoning ecosystem that spans several fields, including payments, cybersecurity, identities, and trustworthy AI, among many others. 

As the market grows, so too does investment. Startups have been entering the field. But all that innovation requires backing from the market itself. The good news is that financial support is available to the right players. “We actively seek out startups that make digital technologies trustworthy, secure, and resilient,” noted Andreas Barthelmes, Investment Principal at G+D Ventures. “Trust forms the foundation of innovation, security, and growth in the digital world. The technology that underpins that trust – what we call TrustTech – is a strategic focus for us.” 

When it comes to Europe, however, there can be a perception that funding lags behind what is available in other places. But that isn’t necessarily true. As Barthelmes pointed out, there are unique reasons why European-based startups enjoy an advantage when plotting a path to success.

Among other things, these include:

• Europe’s robust regulatory structure, from the General Data Protection Regulation (GDPR) to the AI Act. Firms that are on their way to compliance in the eurozone will be compliant in other places. Scalability begins here.
• Further, compliance with European regulation fosters trust when it comes to making sales elsewhere. For instance, for a company that values data privacy, or for someone looking for a partner with a responsible and future-focused AI policy, a European background helps.
• Europe’s world-class educational and training infrastructure. Leveraging this key strength is a critical success factor, from talent to testing to partnerships. 

G+D Ventures is a venture capital fund backed by the larger G+D group and the European Investment Bank (EIB), focused on European-based early-stage companies that are innovating in the TrustTech field. If you’re a European cybersecurity startup wondering what a well-established venture fund with a TrustTech portfolio considers essential to success, then read on.

Team structure

1. It’s the team, not just the idea

“Team composition is the strongest signal of future success,” noted Barthelmes. For instance, does it have sales expertise? A team that is too weighted toward the technical side could run into issues when it transitions to selling its solutions. Experience is key as well. “Have you built something before in this field? Have you shown initiative? There’s a lot of learning there, including dealing with rejections and failure,” he said.

2. Have you felt the pain?

Someone who has directly encountered a vulnerability or system weakness is often best placed to lead a solution to overcome it. Those with a background in penetration testing or red teaming – or enterprise security backgrounds in banks and large corporations – are uniquely suited to come up with products that address the gaps they’ve found. “We’ll take lived experience over abstract identification every time,” smiled Barthelmes.

More than just tech

3. The code can wait

“Do the customer discovery first,” stressed Barthelmes. “Speak to the companies, map the workflows, compare how it plays across different organizations. Is the problem you’re seeking to solve universal, and if so, will the customer pay for your solution? If they won’t … Well, what’s the point?” 

4. Customer feedback is key

Don’t get too focused on building the perfect product. The idea is to iterate rapidly based on real-world customer environments, while controlling risks. Further, a pilot customer can serve as a credibility anchor that unlocks further deals. Please note that converting pilots into sales remains a key obstacle. If you’ve already done that, you’re well on your way to success.

5. Distribution matters more than tech

This is especially true in the era of AI. “Products are getting made faster, and more easily,” shrugged Barthelmes. “Differentiation is hard. In that scenario, competitive advantage comes from speed of execution, customer integration, and go-to-market capability.”

Network, customers, hardware

6. Network, network, network

“Early go-to-market is highly relationship-driven,” noted Barthelmes. Cold outreach rarely works in enterprise security sales. Growth depends on advisors with industry credibility, investor introductions, and internal champions within large organizations. 

7. AI helps, but raises the pressure: stay customer-focused

While it is great in reducing development cycles – in some cases from years to months – AI has shifted the stress point from engineering to customer access and speed of execution. “It helps if the team is small and well aligned,” stated Barthelmes. “But only if they’re tightly connected to the customer’s actual needs.” 

8. The return of hardware

The advent of AI means software has become easier to replicate. As a result, hardware-based security or hardware-software hybrid solutions are in the spotlight, as they create higher barriers to entry and stronger long-term moats. Companies looking to innovate in these fields can find a path to success, for instance in defense, satellite communications, and physical security infrastructure.

It’s all about values

9. Demonstrate the right values

Founders can sometimes feel torn between looking for funding and wanting to retain control of what they’ve created. But the truth is that it doesn’t have to be an either/or. The right venture capital partner invests in people and teams that integrate human values into their innovations. Once that commitment is demonstrated, the magic can begin. “For a responsible investor, the idea is to be an engaged partner on your company’s path to success,” noted Barthelmes. 

It isn’t about building the best product in isolation, anymore, but rather to be quick and nimble, well-integrated, and, above all, trusted. Because trust is the word that matters most.

Published: 18/08/2026