Laxman Pai, Opalesque Asia: VC investment in Europe dipped slightly from $16.3 billion in Q1'25 to $14.6 billion in Q2'25, said a study.
According to KPMG's Q2'25 Venture Pulse Report, deal volume fell more significantly over the same period - from 2,358 deals to 1,737 deals as VC investors in the region showed some reticence towards dealmaking given the uncertain geopolitical and trade environment.
The strong geographic diversity of VC investments in Europe was on display in Q2'25, with companies from five different jurisdictions attracting the largest deals in the region during the quarter, including Germany-based Helsing ($683 million), Portugal-based Tekever ($500 million), Netherlands-based ATS Holding ($444 million), Israel-based Cato Networks ($359 million), and UK-based Believ ($339 million).
Several other jurisdictions in Europe and the Middle East also saw $100 million+ funding rounds, including Spain, Ireland, Iceland, the UAE, Switzerland, and Latvia.
According to the study, the AI space remained a highly attractive sector for VC investment in Europe during Q2 2025. While startups focused on developing AI models and AI infrastructure attracted sizeable funding rounds - including Israel-based AI21 Labs, which raised $300 million - the hottest segment of AI investment in Europe was the intersection of AI and defencetech.
Meanwhile, the robust deal sizes reflect the keen interest of VC investors in the application of AI to defence technologie...................... To view our full article Click here
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