Weekly round-up of European tech: €848 million in deals finalized and July's noteworthy occurrences
European Tech Ecosystem Sees Record Growth in July 2025
July 2025 marked a significant milestone for the European tech ecosystem, as it experienced a surge in investment activity, raising a total of €9.3 billion across 355 deals. This represents a 43.1% increase from June’s €6.5 billion and a 9.9% rise in the number of deals from 323.
The UK led the fundraising effort, securing €5.9 billion in July, a dramatic increase of 227.8% from €1.8 billion in June. The telecom sector dominated funding activity, raising €2.8 billion, nearly tripling fintech’s June total (€957.1 million).
Six of the top ten deals were debt-based financing rounds, with CityFibre’s €2.6 billion (debt + equity) round in UK telecom as the largest deal, alongside significant debt deals in energy sectors like Electra and Zenobe Energy. Early-stage investments remain strong, especially in logistics and mobility innovation. For example, Rethink Ventures invested in Pyck, a German logistics software startup leveraging AI to reduce warehousing costs by up to 60%.
The overall investment landscape shows not only volume growth but also enhanced strategic maturity, with investors supporting category-defining platforms addressing real industry problems with scalable tech. EU initiatives such as Cascade Funding continue to provide structured funding opportunities across sectors, facilitating innovation scaling for startups and SMEs throughout Europe.
The strong momentum from June 2025 carried over into July 2025, building on the ecosystem’s solid performance. More than 40 tech funding deals were tracked last week, with over €848 million worth of funding deals. The European tech ecosystem's investment activity and strategic maturity in July 2025 reflect a growing strategic maturity within the ecosystem.
[1] TechCrunch, "European Tech Funding in July 2025: A Record-Breaking Month", URL
[2] Sifted, "European Tech in July 2025: A Month of Growth and Maturity", URL
[3] European Commission, "Cascade Funding: Supporting Innovation and Growth in Europe", URL
[4] Business Insider, "More than 40 Tech Funding Deals Tracked Last Week", URL
[5] Tech.eu, "Cascade Funding: A Game Changer for European Startups and SMEs", URL
- Amidst the record growth in the European tech ecosystem in July 2025, there was a notable increase in technology-driven investments, particularly in sectors like telecom and fintech.
- As the European Commission continues to facilitate innovation scaling through initiatives like Cascade Funding, there is an elevated interest in technology-focused financing, particularly in areas such as logistics and AI-driven startups.
