Top 10 Notable European Tech Deals to Watch Out for in July 2025
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In July 2025, the European tech landscape experienced a significant funding surge, with the top 10 tech companies collectively raising approximately €9.3 billion across 355 deals. This surge, particularly from the UK and telecom sector, has left the industry optimistic about the opportunities ahead.
Michael Buchinger, a Venture Capitalist at Rethink Ventures, commented on the July numbers, expressing enthusiasm for the vibrant and diversifying European tech ecosystem.
Sector Focus
The telecommunications sector was the most funded, raising approximately €2.8 billion, almost tripling the fintech sector's June total. The energy sector also featured prominently, with major debt transactions. Other sectors attracting notable investments include logistics and mobility, fintech, and AI-driven software development for regulated industries.
Leading Deals
The largest deal was by CityFibre, a UK telecom company, with a €2.6 billion round combining debt and equity, supporting network expansion. Other top deals involved companies like Electra and Zenobē Energy in the energy sector, which were largely debt-based deals. Significant funding rounds also included Propel Finance (UK) and Lovable (Sweden), highlighting cross-sector growth. In Central and Eastern Europe (CEE), strategic investments included Poland’s Callstack and Estonia/UK’s Lightyear, focusing on software development and fintech respectively.
Sector Performance Highlights
The UK leads Europe's tech funding landscape, raising €5.9 billion in July, a 227.8% increase from June. The data indicates a shift with increased debt financing in some sectors alongside equity rounds. Early-stage logistics and mobility startups are attracting attention for AI-driven innovations that reduce operational costs dramatically. Besides telecom and fintech, other sectors like energy and AI-enhanced regulated software development are drawing significant VC interest.
Summary
The European tech ecosystem is experiencing a thriving and diversifying period, with telecom leading the capital infusion, followed by momentum in energy, fintech, and AI-driven verticals. The UK leads funding volume and deal size, while the CEE region also shows a strong presence. Key companies and deals, sector performances, and location focus are detailed in the table below:
| Sector | Key Companies / Deals | Funding / Highlights | |------------------|-----------------------------------------|---------------------------------------------------| | Telecom | CityFibre (UK), Zenobē Energy | €2.8 billion total; largest deal €2.6 billion CityFibre (debt+equity) | | Energy | Electra, Zenobē Energy | Several major debt-based deals | | Fintech | Propel Finance (UK), Lightyear (Est/UK) | Fintech raised €957M in June; continued solid growth | | Logistics/Mobility| Pyck (Germany), Swotzy (Latvia) | Early-stage AI logistics platforms gaining traction | | Software / AI | Callstack (Poland), axem (Hungary) | AI development for regulated industries and mobile dev | | Location Focus | UK (leading) with €5.9B; strong CEE presence | UK leads funding volume and deal size |
This report provides a detailed review and in-depth analysis of the European tech ecosystem, including industry and country performance, exit activities, and more. Rethink Ventures, for instance, invested in Pyck, a German logistics software disruptor, in July. The July report is a testament to the meaningful mobility and logistics innovation happening in Europe.
Financing in the fintech sector, despite tripling in June, still trails behind the telecommunications sector in terms of funding, highlighting the continued preference for technology investments in the European landscape.
The UK's leading position in Europe's tech funding landscape, raising €5.9 billion in July, suggests a significant increase in technology-focused business investments across various verticals, including fintech, telecom, energy, and AI-driven software development.
