Europe Posted Its Strongest Quarter In Q3 In 4 Years, As Its Venture Ecosystem Expands Beyond The UK

What happened

European startup funding reached $25 billion last quarter, well above the $14 billion invested in Q3 2025 and up slightly from the $24 billion invested in Q2. Table of contents Billion-dollar fundings Venture expands beyond the UK Late-stage rise Early stage Seed Looking forward Methodology Glossary of funding terms Billion-dollar fundings Four European companies raised billion-dollar-plus fundings, representing close to 40% of the region’s startup capital raised last quarter.

Quarterly funding was up 77% year over year, per Crunchbase data. In Q3, Europe posted its strongest venture funding quarter in four years, with AI companies driving those gains, Crunchbase data shows.

continued to lead startup funding totals last quarter, Germany and France both posted their strongest quarters since the boom years of 2021 and early 2022. Last quarter’s funding totals were boosted heavily by a $3.5 billion investment in Paris-based Mistral , the largest venture round ever for a Europe-based company.