Weekly round-up of European tech industry: €824 million in dealings and important trends from the first half of 2025
European Tech Investment in H1 2025: A Mixed Picture of Growth
European tech investment in the first half of 2025 presents a complex landscape, with signs of growth in some sectors while overall investment volume has cooled compared to the previous year.
According to a recent report, over 85 tech funding deals were tracked last week, shedding light on the sustained interest in innovation across various sectors in Europe.
The total European tech investment in H1 2025 was more than €33.7 billion, a decrease of 31% year-over-year, but still 17% higher than H1 2023. The UK led the way with €8.4 billion, followed by Germany and the Netherlands.
One of the most significant trends in H1 2025 was the growth in AI-native startups. AI investments reached €3.04 billion, up 61% from H1 2024, with the number of investors nearly tripling compared to Q1 2022.
European FinTech investment also showed resilience, growing by 17% half-on-half to $4.4 billion. The UK led Europe in FinTech investment, with $1.5 billion coming from 240 deals, followed by France and Germany.
In the UK, early-stage funding rebounded strongly, with around $7 billion raised in H1 2025, the strongest Q1 since 2022. Although the number of deals decreased, average deal sizes increased, indicating a preference for backing fewer but higher-potential startups.
Besides AI and FinTech, fintech, healthtech, and energy tech were the top-funded sectors in Europe, indicating sustained innovation interest.
The report offers a comprehensive view of European innovation today and what's ahead for the second half of 2025. It provides key data and insights from investors, startups, and ecosystem leaders about European innovation.
For further details about European tech investment in H1 2025, the report is a valuable resource. Additionally, more than 15 exits, M&A transactions, rumors, and related news stories were also tracked last week.
| Trend | Detail | |-------------------------------|-----------------------------------------------------------------------------------------| | Total European Tech Investment | €33.7 billion, down 31% YoY but 17% above H1 2023[2] | | AI Investment | €3.04 billion, +61% vs. H1 2024; investor count tripled from Q1 2022[1] | | FinTech Investment | $4.4 billion (+17% vs H2 2024); UK leads with $1.5 billion[3] | | UK Early-Stage Funding | ~$7 billion raised; fewer deals but larger average size; growth outside London[4] | | Leading Countries | UK > Germany > Netherlands for tech; UK > France > Germany for fintech[2][3] | | Top Sectors | AI, fintech, healthtech, energy tech[1][2] |
- Despite the overall decrease in European tech investment, the FinTech sector demonstrated resilience, with a 17% growth in investments, totaling $4.4 billion in the first half of 2025.
- The HealthTech sector, along with FinTech, AI, and EnergyTech, were the top-funded sectors in Europe, indicating a continued focus on innovation across various industries.
