European startups raised 12.3 billion in Q2 2025 as investor confidence quietly rebounds - Silicon Canals

"That's what Q2 2025 looks like across Europe's startup ecosystem. According to data compiled from multiple tracking sources, European startups collectively raised approximately €12.3 billion in the second quarter of the year - a notable uptick from the subdued figures that characterised much of 2023 and early 2024, and a signal that investor confidence, while not fully restored, is quietly rebuilding."

"But Q2 2025 tells a different story - not one of exuberance, but of recalibration. Deal volume across the continent has stabilised, and average round sizes at Series A and B have inched upward. Several mega-rounds in the climate tech and defence sectors padded the headline figure, but even stripping those out, the underlying trajectory is positive."

"This isn't a return to 2021. Nobody serious is suggesting that. But it does suggest that the European venture ecosystem has found something resembling a new equilibrium - one shaped by harder lessons about unit economics, capital efficiency, and the difference between growth and value creation."

European startups raised approximately €12.3 billion in Q2 2025, marking a significant recovery from the subdued funding environment of 2023 and early 2024. This uptick reflects rebuilding investor confidence, though not a return to 2021 exuberance. Deal volume has stabilized across the continent, and average round sizes at Series A and B levels have increased. The recovery demonstrates the ecosystem's recalibration toward sustainable metrics including unit economics, capital efficiency, and value creation over pure growth. Several mega-rounds in climate tech and defence sectors contributed to headline figures, but underlying positive trajectory persists even when excluding these outliers. The funding movement represents deliberate capital allocation based on renewed belief in European startup viability.

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