Observed Signal · Apr 22, 2025 · Funding · Source: Tech.eu · Impact: 2/5 · Sentiment: Positive
Europe’s healthtech and AI startups raise $13.9B in Q1 as global investors return
According to Dealroom data, European healthtech and AI startups raised $13.9 billion in Q1 2025, a 2% year-over-year increase and flat quarter-over-quarter. Healthtech led with $4.3 billion, up 65% YoY, marking its fourth consecutive quarter at the top, driven by mega-rounds including Isomorphic Labs ($600M), Verdiva Bio ($411M), and Neko Health ($260M). AI startups secured $3.4 billion, up 55% YoY, representing 25% of all European VC funding—up from 7% a decade ago. International investors contributed over 40% of the total, with US investment hitting its best Q1 since 2021. AI for drug discovery led AI sub-sectors at $949 million. The article quotes Julia Hawkins of LocalGlobe, highlighting sustained European healthtech investment.
AI investment trends are relevant to the broader tech infrastructure that includes advertising technology, but the article specifically focuses on healthtech, so impact on AdTech is indirect.
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Key Takeaways & Evidence Grounding
- European healthtech and AI startups raised $13.9B in Q1 2025, up 2% YoY.
- Healthtech received $4.3B, up 65% YoY, leading for the fourth consecutive quarter.
- AI startups raised $3.4B, up 55% YoY, accounting for 25% of European VC funding.
- Over 40% of investment came from international investors, the best Q1 for US investment since 2021.
- Isomorphic Labs raised $600M for AI drug discovery.
Connected Companies & Entities
1 Entity mapped“Q1 data from Dealroom reveals that European health tech and AI companies continue to attract significant interest from global venture capita...”
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Delivery Hero Alumni Build 150 Startups Worth €7.5B
A new analysis by Dealroom.co reveals that alumni of Delivery Hero and its European brands have founded 150 startups with a combined enterprise value of €7.5 billion, employing 11,000 people and raising €4.4 billion in venture capital. This makes Delivery Hero Europe's largest founder factory by VC raised and number of startups founded. The report highlights Germany's central role, with Berlin-based startups accounting for €4.9 billion of the total value and 42 startups from Delivery Hero's Berlin HQ alone. Alumni-founded companies span food, enterprise software, health, and transportation, with strong funding progression. Delivery Hero alumni have also spawned second-generation startups and moved into venture capital, raising €7.3 billion in new funds since 2020.
European Defense Tech Funding to Hit $10.5B Record
European defense tech startups have raised $7.4B in venture capital this year, nearly triple all of 2025 ($2.6B), according to the 'State of Defence Tech 2026' report by Dealroom and Resilience Media. The report projects year-end total to reach $10.5B. US investors now provide 47% of funding, up from 17% in 2020, with Accel, Founders Fund, General Catalyst, Lightspeed, and Y Combinator most active. Germany leads with $3.5B, driven by Munich firms Helsing ($1.8B round, $18B valuation) and Quantum Systems ($1.2B, $8B valuation). Defense tech now represents 11.1% of European VC, up from 4%. However, mega-rounds dominate (>85% of funding), exits remain scarce, and procurement hurdles persist in Germany and Britain.
European defencetech hits record $7.4B as investment nearly triples
European defense technology startups have raised $7.4 billion in venture capital in 2026, nearly triple the $2.6 billion raised in 2025, according to the 'State of Defence Tech 2026' report by Dealroom and Resilience Media. Mega-rounds of over $1 billion account for more than 85% of funding, led by companies like Helsing, Quantum Systems, and others. The sector now represents 11.1% of European VC investment, up from 4% a year ago. Germany leads with $3.5 billion, driven by Munich-based Helsing ($1.8B) and Quantum Systems ($1.2B). For the first time, US investors contribute a larger share (47%) than European investors, up from 12-17% in 2020. Despite rapid growth, challenges remain, including limited exits and procurement hurdles, with year-end funding projected at $10.5 billion.
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