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.
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