According to KPMG's analysis, roughly $51.3 billion of venture capital was invested into European companies in the first six months of 2026. Investors deployed $25.7 billion in the first quarter and $25.6 billion in the second quarter, signaling a strong start to the year for the region's startup and scaleup ecosystem.
Record number of $1 billion-plus deals in Q1
The strength of the market is underscored by six European companies raising at least $1 billion in Q1 2026 — the highest count of such deals on record. Of those six transactions, three were linked to the United Kingdom, two to Germany and one to France.
Notable large transactions from the first half (company — country — amount):
- Nscale — United Kingdom — $2.0 billion
- Isomorphic Labs — United Kingdom — $2.1 billion (AI-driven drug discovery)
- Neura Robotics — Germany — $1.8 billion
- Wayve — United Kingdom — $1.5 billion
- Ominimo — Serbia–Hungary founded — $1.6 billion (July transaction indicating CEE ecosystem momentum)
- Cloover — Germany — $1.2 billion
- Ineffable Intelligence — United Kingdom — $1.1 billion (a large early-stage round)
- Advanced Machine Intelligence — France — $1.0 billion
- Kraken Technologies — United Kingdom — $1.0 billion
(The list highlights the largest deals called out in the KPMG analysis.)
Multiple sectors and geographic hubs
Investment activity shows that capital is not concentrated in a single technology area. AI remains the primary growth engine, with several headline rounds in the sector. At the same time, robotics, autonomous transport, fintech and energy technology received substantial funding.
KPMG also notes growing investor interest in the intersection of AI and biotechnology — illustrated by Isomorphic Labs' $2.1 billion raise — and in defence technologies and dual-use systems. For example, French company Aura Aero raised $392 million for hybrid-electric aircraft development in Q2.
Investor behaviour and market trends
KPMG observes a global trend playing out in Europe: fewer deals overall, but higher aggregate values. Investors are cautious and prefer to allocate capital to businesses with proven technology, scalable models and clear growth potential.
Nonetheless, there is willingness to commit very large sums even at early stages in certain areas, notably AI (for example, Ineffable Intelligence's $1.1 billion round), indicating investor conviction in the sector's growth prospects.
Why this matters
The more than $51 billion invested in H1 2026 confirms that Europe remains attractive to large investors, and that the continent's geographic and sectoral diversity is an advantage. The rising focus on defence technology, health innovation and energy solutions suggests further high-value transactions are likely in the coming periods.
Overall, the market is characterized by cautious capital allocation and a preference for scaleable opportunities, yet the volume of multi-hundred-million and billion-dollar rounds shows European technology companies can still draw significant international funding.
