The European tech landscape witnessed a significant funding surge last week, with over €2.8 billion invested across more than 70 deals. This wave of investment spanned various industries and countries, highlighting the continent’s vibrant tech ecosystem. The top three sectors attracting the most funding were cloud computing (€790.8 million), fintech (€660 million), and energy (€471.4 million).
At the country level, the United Kingdom led the pack with €1.7 billion in investments, followed by Germany (€511.9 million) and France (€258.4 million). These figures underscore the dynamic nature of Europe’s tech scene and the growing interest from investors in the region’s innovative startups and scale-ups.
Notable funding rounds across Europe
The funding landscape was diverse, with notable investments across various sectors and countries. In the UKHyperscaler Nscale secured a £670 million credit facility, while Lendable raised $670 million for global expansion. Germany saw the largest European fusion investment on record, with Proxima Fusion raising €411 million.
In FranceSkello secured €200 million to grow its AI tools for frontline workforce management. Meanwhile, Kraken Technology a maritime defence startup, hit unicorn status after a $175 million raise in the UK. Lithuania‘s Oxylabs ended its bootstrapped streak after securing €113.6 million at a €3.1 billion valuation.
The European Tech Champions Initiative 2.0
Complementing these funding rounds, Europe has launched a major investment initiative to help innovative technology companies grow into global leaders. The European Tech Champions Initiative (ETCI 2.0) aims to mobilise up to €80 billion in funding for European tech scale-ups. This initiative marks the second phase of a program designed to address the funding gap faced by high-growth technology companies.
The ETCI 2.0 will provide equity financing to promising tech companies seeking to expand while keeping more European innovators anchored within the region. The European Investment Bank Group will invest up to €1.25 billion into ETCI 2.0, with institutional investors and asset managers from across Europe joining the alliance. This initiative aims to ensure that European companies developing advanced technologies have access to the resources needed to scale within Europe.
Venture capital reaches second-highest level on record
According to Invest Europe venture capital recorded its second-highest annual transaction value on record in 2026, reaching €35.3 billion. This growth was driven by larger financings, with transactions above €30 million accounting for a growing share of invested capital. The ICT sector remained the leading sector, attracting €17.2 billion while the UK & Ireland continued to lead regional investment activity.
Growth capital also rebounded after three consecutive years of decline, with transaction value increasing 12 per cent year-on-year to €33.4 billion. This recovery was driven primarily by larger deals exceeding €30 million with ICT and biotech and healthcare remaining the most active sectors. Buyout activity remained broadly stable, supported by consistently strong financing structures, with €189 billion invested in buyouts during the year.
The European tech funding landscape is thriving, with significant investments across various industries and countries. As the region continues to attract substantial funding, it is poised to strengthen its position in the global innovation economy.
