Europe’s Venture Funding Landscape: Q1 2025 Insights
In the first quarter of 2025, venture funding in Europe reached a total of $12.6 billion, marking no change compared to the previous quarter and the same period last year, according to data from Crunchbase. This stagnation comes amidst a notable decrease in Europe’s share of global venture capital funding, primarily influenced by significant AI funding rounds that took place in North America during the same timeframe.
Trends and Fluctuations in Funding
The landscape of venture funding in Europe has shown significant fluctuations since the downturn began in 2022. Over the past year, the region has seen quarterly funding figures range considerably, from a low exceeding $10 billion to highs above $16 billion. Despite the current plateau, venture funding levels in 2023 and 2024 have surpassed the amounts recorded in pre-pandemic years.
Sector Performance in Q1 2025
The healthcare and biotech sector emerged as the frontrunner, securing $4 billion, which accounts for 32% of the total funds raised in Europe. Other notable sectors included:
- Financial services: $2.8 billion
- AI-related companies: $2.7 billion
Regional Highlights: Spain Secures Milestone
The United Kingdom continues to lead in venture capital within Europe, with startups in the region raising approximately $4.4 billion in Q1 2025. Other countries reported the following funding levels:
- Germany: $1.6 billion
- France: $1.3 billion
- Spain: $1 billion (a significant milestone since it was the first time in over two years that Spanish startups crossed the $1 billion mark)
Investment Stages Overview
Late Stage Funding
In the late-stage funding category, approximately $5.6 billion was allocated across more than 80 growth stage deals. Noteworthy large financing rounds included:
- Isomorphic Labs (London): $600 million
- Rapyd (London): $500 million
- Amboss (Berlin): $259 million
- TravelPerk (Barcelona): $200 million
Early Stage Highlights
Early-stage companies in Europe garnered $5.4 billion through over 280 funding rounds. Notable investments included:
- Verdiva Bio (London): $411 million
- Windward Bio (Basel): $200 million
- Neko Health (Stockholm): $260 million
Seed Funding Insights
Seed funding across Europe totaled $1.6 billion in Q1, across approximately 850 rounds. It is important to note that these figures may increase as funding amounts are sometimes reported after a quarter ends.
Global Context: Regional Variations
The venture funding downturn has manifested differently across continents. North America is witnessing a revival fueled by substantial investments in the AI sector, while both Asia and Latin America face a slowdown. Interestingly, despite the downturn, European funding levels remain robust, surpassing pre-pandemic figures and showcasing growth, particularly in the early-stage sector.
Data Methodology
The information presented in this report is derived from Crunchbase, based on data as of April 2, 2025. It is worth noting that there can be delays in reporting, especially at the earliest stages of venture funding, leading seed funding amounts to adjust over time. All funding values are in U.S. dollars unless stated otherwise, using prevailing exchange rates from the respective funding dates.
Glossary of Funding Terms
The following definitions apply to the types of funding mentioned:
- Seed and Angel: Includes seed, pre-seed, and angel rounds.
- Early-stage: Comprises Series A and Series B rounds.
- Late-stage: Encompasses Series C, D, E, and beyond.
- Technology Growth: Refers to private-equity rounds raised by companies following an initial venture round.
As Europe navigates its venture funding landscape in early 2025, the data shows resilience and evolving trends among its startups, especially in key sectors like healthcare and fintech.
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