Venture Funding in Europe Holds Steady: Q1 2025 Insights
Data from Crunchbase reveals that Europe’s venture capital investment plateaued at $12.6 billion in the first quarter of 2025, marking no significant change from both the previous quarter and the same period last year. Notably, the lack of record-breaking funding rounds, especially in artificial intelligence, which were observed in North America, contributed to a decline in Europe’s share of global venture capital.
Stability Amid Fluctuations
The reported figures for Q1 2025 are on the lower end of a broader trend, which has seen quarterly funding in Europe fluctuate since the venture funding downturn initiated in 2022. Despite this, it is important to note that every quarter in the past year saw funding exceed $10 billion, with the highest reaching above $16 billion.
When compared to pre-pandemic levels, funding in Europe has shown resilience, with annual totals for 2023 and 2024 surpassing those of 2020 and earlier years.
Sector Performance: Healthcare at the Forefront
In terms of sector performance, the healthcare and biotech industries emerged as the top beneficiaries, attracting $4 billion or 32% of total funding in Q1. Financial services startups based in Europe garnered $2.8 billion, closely followed by AI-related companies, which secured $2.7 billion.
Regional Highlights: Spain Shines
The United Kingdom continues to dominate European venture funding, raising approximately $4.4 billion in the first quarter. Germany secured $1.6 billion, while France followed with $1.3 billion. Spain marked a significant milestone as its startups raised $1 billion, representing the first time in over two years that Spanish companies achieved this level in a single quarter.
Growth Trends: Late-Stage Investment Leads the Way
Q1 2025 saw around $5.6 billion invested throughout more than 80 growth-stage financing rounds. Prominent late-stage funding included:
- Isomorphic Labs, a London-based AI drug discovery firm, raised $600 million backed by Google.
- Payments platform Rapyd successfully secured $500 million in investments.
- Berlin’s Amboss, which specializes in medical knowledge for clinical decision-making, raised $259 million.
- Barcelona-based TravelPerk, a business travel management service, obtained $200 million.
Early and Seed Stage Developments
Early-stage investment in Europe totaled $5.4 billion across more than 280 funding rounds. Noteworthy Series A investments were made in:
- Verdiva Bio, based in London, received $411 million for obesity drug development.
- Sweden’s Windward Bio, focused on respiratory treatments, raised $200 million.
- Neko Health, a healthcare scanning innovator located in Stockholm, closed a $260 million Series B round.
The seed funding landscape also remained active, with a total of $1.6 billion raised through 850 rounds in Q1. These numbers are expected to grow as additional seed funding reports are finalized after the quarter ends.
Global Context: Variable Trends by Region
The global venture funding environment is experiencing mixed trends. North America has seen a resurgence driven by significant funding in AI, while Asia and Latin America have encountered notable slowdowns. However, European venture funding, particularly at the early stage, has shown growth post-pandemic, even amidst the current downturn.
Methodology
This analysis is derived from data reported by Crunchbase as of April 2, 2025, and reflects the status of venture capital funding across various stages. Importantly, the values stated are denominated in U.S. dollars and are based on historic currency conversion rates for past financial events.
Glossary of Funding Terms
For clarity:
- Seed and angel funding: Includes pre-seed rounds and angel investments generally capped at $3 million.
- Early-stage funding: Comprises Series A and Series B rounds, defined as funding exceeding $3 million and up to $15 million.
- Late-stage funding: Encompasses Series C, D, E, and later rounds starting from $15 million upwards.
