London-based Encord Raises €50 Million to Support Next Phase of Physical AI Deployment: Revolutionizing the Future of AI

As the world moves towards a more technologically advanced future, the demand for Artificial Intelligence (AI) is growing rapidly. In response, London-based startup Encord has raised €50 million in Series C funding to support the next phase of physical AI deployment. With this investment, Encord aims to accelerate product development, expand into new markets, and scale its AI-native data infrastructure platform.

Encord’s mission is to revolutionize the future of AI by providing a universal data layer for AI teams. The platform helps these teams manage, curate, annotate, and align the multimodal data that physical AI systems depend on. This includes audio, video, images, sensor data, 3D point clouds, and other formats that legacy data platforms struggle to handle.

The funding round was led by Wellington Management, bringing Encord’s total funding to €93 million. Existing investors Y Combinator, CRV, N47, Crane Venture Partners, and Harpoon Ventures also participated in the round, along with new investors Bright Pixel Capital and Isomer Capital. This significant investment highlights the growing interest and demand for AI infrastructure and autonomy stack in Europe.

Encord’s co-founder and co-CEO, Ulrik Stig Hansen, explains that while many are focused on building bigger AI models, the bottleneck for physical AI is data readiness. The most sophisticated model in the world will still fail if the data feeding it is incomplete, inconsistent, or misaligned with real-world conditions. Encord solves this problem by providing a unified data layer that scales with the complexity of AI workflows.

The company’s Series C funding comes at a crucial time as physical AI systems move from pilot programs to full production. This shift has led to sustained capital flows into Europe’s AI infrastructure, with significant investments in companies such as Mistral AI, Nscale, and Stanhope AI. Together, these rounds represent over €3 billion in funding, highlighting the massive scale of investment directed towards AI models, compute infrastructure, and physical-world applications.

Encord’s raise reflects the continued investor focus on the data layer, which is essential for the success of physical AI systems. The company’s customer, Vantor, a critical infrastructure and national security company, emphasizes the importance of a scalable data platform. Encord provides them with a unified data layer that can handle the complexity of their geospatial workflows, from curation to annotation to evaluation.

Founded in 2021, Encord has already established partnerships with over 300 AI teams, including big names like Woven by Toyota, Zipline, AXA, and Skydio. The company’s platform has seen a surge in demand, with data on the platform growing from 1 petabyte to over 5 petabytes in just twelve months. Revenue from physical AI customers has also grown 10x over the same period, showcasing the company’s success in the market.

Encord’s co-founder and co-CEO, Eric Landau, states that the funding will accelerate product development and expansion into new markets. He also highlights the crucial role of data in physical AI, stating that the companies excelling in this field understand that the model is only as good as the data behind it. Encord’s platform provides the infrastructure to make this data usable, continuously improving as these systems learn and evolve in the real world.

Encord’s successful funding round and growing customer base demonstrate the immense potential and demand for physical AI. As analysts project that over 400 million AI robots will come online in the next four years, and the physical AI industry size will exceed €25 billion, Encord is well-positioned to lead the way in providing the necessary data infrastructure for this rapidly growing market.

Key Takeaways:

• London-based startup Encord has raised €50 million in Series C funding to support the next phase of physical AI deployment.
• The company provides a universal data layer for AI teams, managing, curating, annotating, and aligning the multimodal data that physical AI systems depend on.
• The funding round was led by Wellington Management, bringing Encord’s total funding to €93 million.
• Encord’s platform has seen a surge in demand, with data on the platform growing from 1 petabyte to over 5 petabytes in just twelve months.
• The company works with over 300 AI teams, including big names like Woven by Toyota, Zipline, and Skydio.
• Encord’s successful funding round highlights the growing interest and demand for AI infrastructure and autonomy stack in Europe.
• The company’s platform plays a crucial role in the success of physical AI systems, providing the necessary data infrastructure for continuous improvement and evolution.
• As the demand for AI continues to grow, Encord is well-positioned to lead the way in revolutionizing the future of physical AI.

Source: https://www.eu-startups.com/2026/02/london-based-encord-raises-e50-million-to-support-next-phase-of-physical-ai-deployment/