Europe’s VC funding reached $12.6 billion in Q1 2025, showing no change compared to both the previous quarter and the same time last year. While global funding patterns shifted—especially with massive AI investments in North America—Europe’s share of worldwide venture capital dropped to 11%, down from 16% in 2024.

Funding across Europe has fluctuated since the downturn began in 2022. Over the past year, quarterly investments have ranged from just above $10 billion to over $16 billion. Despite recent flat growth, Europe still outperforms its pre-pandemic levels, with 2023 and 2024 both showing higher totals than before 2020.

Healthcare Drives Europe’s VC Funding

Healthcare and biotech led all sectors, raising $4 billion in Q1—32% of the region’s total. Financial services followed with $2.8 billion, and AI-focused startups secured $2.7 billion. These three sectors made up the majority of Europe’s VC funding activity this quarter.

Spain Joins the Billion-Dollar Club

The U.K. remained the top market for VC investment in Europe, with startups raising $4.4 billion. Germany followed with $1.6 billion, France brought in $1.3 billion, and Spain hit a notable milestone, crossing the $1 billion mark for the first time in over two years.

Late-Stage Funding Overview

Late-stage startups attracted $5.6 billion across more than 80 deals. Major rounds included:

• Isomorphic Labs (London): $600M – AI drug discovery
• Rapyd (London): $500M – Payments platform
• Amboss (Berlin): $259M – Medical knowledge platform
• TravelPerk (Barcelona): $200M – Business travel management

Early-Stage Activity Still Strong

Early-stage companies raised $5.4 billion across 280+ funding rounds. Key investments included:

• Verdiva Bio (London): $411M – Obesity drug development
• Windward Bio (Sweden): $200M – Respiratory treatments
• Neko Health (Stockholm): $260M – Health scanning tech

Seed Funding Shows Steady Momentum

Seed-stage investments totaled $1.6 billion across 850 deals. These numbers are expected to rise, as seed rounds often continue to be reported after quarter-end.

Europe’s VC Funding Holds Firm Amid Global Downturn

While North America’s venture activity grew—thanks to massive AI rounds like OpenAI’s $40 billion raise—Asia and Latin America saw a slowdown. Still, Europe’s VC funding remains higher than it was before the pandemic, especially in early-stage investing.