Weekly roundup of European tech news: Deals worth €848M and bright spots from July
European Tech Funding Surges in July 2025
Europe's tech ecosystem experienced a significant surge in investment activity in July 2025, with a total capital raise of €9.3 billion across 355 funding deals. This marked a 43.1% increase from June’s €6.5 billion and 323 deals, highlighting a remarkable increase in both the volume and value of tech funding activity in Europe.
The UK led the funding efforts, raising a substantial €5.9 billion, a 227.8% increase from the previous month’s €1.8 billion. The telecom and AI sectors largely drove this growth, with the telecom sector securing €2.8 billion, nearly tripling fintech’s June total of €957.1 million.
The surge in funding was marked by a number of large deals, including CityFibre’s €2.6 billion combined debt/equity round in the UK telecom sector. Many of the top 10 deals involved debt-based financing.
While specific aggregate statistics for July 2025 M&A activity are less detailed, over 15 exits, M&A transactions, rumours, and related news stories were tracked last week, reflecting an active market.
The funding landscape was polarized between very large “mega-rounds” (over €100 million) primarily in AI-driven companies, and many early-stage, smaller rounds typically under €20 million. There was a notable lack of mid-size growth-stage rounds (€30m–€80m).
AI-centered companies dominated the large funding rounds, while other sectors such as mobility, robotics, and green tech remained largely at early stages without large-scale growth funding.
In summary, July 2025 saw a sharp increase in European tech funding, especially fueled by the UK telecom and AI sectors, with a marked polarization between mega-deals and seed-stage investments. The European tech ecosystem demonstrated increased investment activity and strategic maturity, but without detailed aggregate figures on deal volume or value for M&A.
- The surge in European tech funding in July 2025 was not limited to the telecom and AI sectors, as it also extended to the finance sector, with several businesses receiving significant investments.
- As technology continues to revolutionize various industries, the increasing investment in the European tech ecosystem in July 2025 could potentially lead to advancements and innovations in the business sector, contributing to overall economic growth.
