According to a KPMG analysis, around $51.3 billion of venture capital flowed into Europe in the first half of 2026. European companies raised $25.7 billion in the first quarter and a further $25.6 billion in the second quarter.
Record number of billion-dollar rounds in Q1
The market’s strength is underlined by six European companies closing funding rounds of at least $1 billion in Q1 2026 — a higher count than ever before. Of those six transactions, three were linked to the United Kingdom, two to Germany and one to France.
Notable large deals included:
- Nscale (United Kingdom) — $2.0 billion (AI)
- Neura Robotics (Germany) — $1.8 billion (robotics)
- Wayve (United Kingdom) — $1.5 billion (autonomous mobility)
- Cloover (Germany) — $1.2 billion (fintech/energy)
- Advanced Machine Intelligence (France) — $1.0 billion (AI)
- Kraken Technologies (United Kingdom) — $1.0 billion (energy technology)
These transactions indicate investor interest is spread across multiple technology areas: alongside AI and robotics, autonomous mobility, fintech and energy featured among the largest rounds.
AI remains the investment engine, including large early-stage rounds
Investor interest in AI continued to grow in Q2: the British company Ineffable Intelligence raised $1.1 billion, one of Europe’s largest early-stage financings, according to the report. Separately, the AI-driven drug discovery firm Isomorphic Labs (United Kingdom) closed a $2.1 billion round, one of the biggest European transactions of the first half — underlining the increasing convergence of AI and biotech.
Defence tech and dual-use solutions are rising areas
KPMG highlights a marked increase in investor attention to defence technology and dual-use solutions over the past two years. In Q2, the French company Aura Aero, developing dual-use hybrid-electric aircraft, raised $392 million. Investor interest stretches from drone and satellite technologies to secure communications and cyber solutions. KPMG notes that geopolitical tensions and efforts to strengthen national defence capabilities could keep defence technology a priority investment area.
Robotics, autonomous mobility and energy technology also attract capital
Other major H1 transactions illustrate the wider deep-tech ecosystem in Europe: Neura Robotics’ $1.8 billion round and Wayve’s $1.5 billion round point to robust investor appetite in robotics and autonomous mobility. In energy technology, Germany’s Cloover raised $1.2 billion and the UK’s Kraken Technologies secured $1.0 billion.
KPMG adds that in the United Kingdom, infrastructure-focused energy solutions — including generation, battery storage and energy-efficiency technologies — have been particularly prominent.
Europe remains attractive to large investors; CEE startups gain traction
The report observes a global trend also visible in Europe: fewer deals overall but higher aggregate values. Investors remain cautious and tend to deploy available capital into companies with proven technology, scalable business models and clear growth potential. Early signs from Q3 show transactions that highlight strengthening of the Central and Eastern European (CEE) tech ecosystem: in July, the Serbia–Hungary–founded Ominimo raised $1.6 billion with participation from the European Bank for Reconstruction and Development (EBRD), becoming the first Hungarian-linked unicorn. Its AI-based insurtech solutions and rapid growth demonstrate increasing investor attention to innovative CEE companies.
Conclusion
KPMG’s figures show a very active European venture capital market in H1 2026, with multiple sectors — AI, robotics, autonomous mobility, fintech, energy, biotech and defence technology — attracting sizeable investment. The data also suggest investors are prepared to back significant amounts even at early stages, particularly where AI-driven growth opportunities exist.
This article does not constitute investment advice or a recommendation.
