Weekly roundup of European tech developments: €824 million in deals sealed and noteworthy patterns from the first half of 2025
In the first half of 2025, the European tech sector has shown a mixed picture, with both a drop in overall funding compared to the previous year and notable large investments in key sectors.
### Funding Trends
The total investment in European tech dropped by 31% year-over-year to €33.7 billion, though it remained 17% above the level in H1 2023. This decrease in funding was somewhat offset by a slight increase in the number of equity deals, with 2,143 deals recorded in H1 2025, compared to the previous year [5]. The continent also saw 46 megarounds (funding rounds of €100 million or more), putting it on pace to match or surpass the 2024 total of 94 [3].
### Sectors
Software, AI, fintech, biotech, and climate tech were the top-funded sectors in H1 2025. Notable investments include $260 million for AMBOSS, $200 million for TravelPerk, and $175 million for Quantexa in the software category [1]. In the AI sector, large raises like $690 million for Helsing and $600 million for Isomorphic Labs were recorded [1][3].
Healthtech, driven by pressures to reduce healthcare costs and leverage AI for diagnosis and drug discovery, also saw substantial investments [3].
### Exits and M&A
While the focus of this report is primarily on funding, M&A deal volumes in the broader technology sector globally decreased by 11% in H1 2025 due to macroeconomic pressures [2]. Specific details on M&A transactions and exits in Europe for H1 2025 are limited in the available data, but a recent week saw over 15 exits and M&A transactions reported, indicating a generally active environment [5].
### Regional Performance
The UK led the way with €8.4 billion in investments, followed by Germany and the Netherlands, which also saw significant investment activity [5].
In conclusion, despite a decrease in overall funding levels, Europe's tech ecosystem remains vibrant, with a focus on strategic sectors like AI, healthtech, and fintech. The report, which offers key data and insights from investors, startups, and ecosystem leaders, provides a comprehensive view of European innovation today and what's ahead for the second half of 2025. The report is available for further analysis and understanding of the European tech landscape.
Business ventures in the tech sector, particularly fintech and healthtech, have received significant investments in H1 2025, aligning with increased emphasis on these sectors. Despite a 31% year-over-year drop in total funding, technology continues to flourish in Europe, with finance and other strategic areas like AI and software receiving notable investments as well.
