Weekly highlights in European technology: Over €824 million in deals sealed and essential trends identified from the first half of 2025
Last week witnessed a flurry of tech-related activities across Europe, with more than 15 M&A transactions, rumors, and news stories being reported[1]. This surge in events was geographically distributed, occurring in various countries across the continent[1].
In addition to these events, over 85 tech funding deals were tracked, with the total worth of these deals surpassing €824 million[2]. The UK led all countries in European tech investment in H1 2025 with €8.4 billion, followed by Germany and the Netherlands[3].
Key trends and sector highlights from the first half of 2025 (H1 2025) reveal a robust and nuanced tech investment landscape[2].
- AI and Deeptech: AI is the dominant theme in H1 2025 European tech investment, with AI-native startups receiving €3.04 billion, a 61% increase from H1 2024’s €1.89 billion[2]. The surge in both deal numbers and investor participation is driven by the broad disruptive potential of AI across industries.
- Healthtech: Healthtech stands out as one of the top-funded sectors, with multiple large funding rounds among Europe’s biggest equity raises. It benefits from three main drivers: healthcare systems under pressure to reduce costs via prevention, accelerated adoption of AI for diagnostics and drug discovery, and consumer shifts toward proactive health management[2].
- Energy Tech: Energy tech funding remains significant, especially with investments targeting the infrastructure to support AI workloads, such as Sweden’s EcoDataCenter securing large capital for expansion[2].
- Fintech: Investment in fintech showed mixed signals. According to Innovate Finance, fintech attracted $4.4 billion (~€4 billion) across 653 deals in H1 2025, marking a 17% increase compared to the previous half year and reflecting resilience and regional leadership by the UK, France, and Germany[4]. However, Sifted data indicates a contrasting trend of fintech funding falling by 20% year-on-year in Europe[5].
In summary, Europe’s H1 2025 tech investment landscape is characterized by strong interest and rapid growth in AI and healthtech, substantial activity in energy tech, while fintech shows some signs of cooling or realignment[2]. The overall investment environment is robust but somewhat cautious compared to 2024’s peak, reflecting selective investor focus on sectors with demonstrated technological urgency and scalability.
For a comprehensive view of the European innovation landscape in H1 2025 and insights on what's ahead for the second half of 2025, a report is available for viewing[6]. This report offers key data and insights from investors, startups, and ecosystem leaders, providing a valuable resource for anyone interested in the European tech scene.
[1] https://www.sifted.eu/articles/european-tech-deal-activity-q2-2025/ [2] https://tech.eu/news/european-tech-investment-h1-2025/ [3] https://www.sifted.eu/articles/european-tech-deal-activity-q2-2025/ [4] https://www.innovatefinance.com/newsroom/innovate-finance-reports-record-fintech-investment-in-h1-2025-as-european-tech-investment-drops-31-year-on-year/ [5] https://www.sifted.eu/articles/european-tech-deal-activity-q2-2025/ [6] https://www.atlantic-academy.org/research/state-of-european-innovation-report-2025/
- In the first half of 2025 (H1 2025), Europe witnessed a robust and nuanced tech investment landscape, with healthtech being one of the top-funded sectors, benefiting from the accelerated adoption of AI for diagnostics and drug discovery, as well as consumer shifts toward proactive health management[2].
- Alongside healthtech, fintech showed mixed signals, with France and Germany demonstrating regional leadership, but investments falling by 20% year-on-year, indicating a potential realignment in the sector[5].
