European AI investment is thriving, with venture capital funding up 55 per cent in Q1 2025 compared to the same period last year.
According to data from Dealroom analysed by Balderton Capital, AI companies have already raised $3.4B (approximately €3B), up from $2.2B (approximately €1.94B) in Q1 2024.
The report also stated that AI is driving much of European tech investment, which dropped slightly from $13.4B (approximately €12B) in Q1 2024 to $13.2B (approximately €11.6B) in Q1 2025.
Excluding AI, the rest of European tech is down 10 per cent, adds the report.
However, the report further states that the AI investment is set to grow, with the European Commission committing €50B to AI initiatives and EU champions planning an additional €200B for industrial technologies.
Additionally, the interest in AI agents has also increased, resulting in $52M invested in startups like Stockholm’s Lovable and London’s Paid AI.
UK leads the AI investment
The UK continues to raise the bulk of AI investment in Europe.
Of the $4.2B (approximately €3.7B) raised by UK startups and scale-ups so far, $1.6B (approximately €1.4B) went to AI companies.
The rise in investment means AI companies are hiring, with 109,000 people working in AI startups and unicorns in the UK, up from 104,000 at the end of 2024.
Germany is also having a stellar year for AI investment, increasing by 74 per cent, from $232M (approximately €204M) in Q1 2024 to $404M (approximately €356M) already this year.
Along with Neura Robotics, other German AI investments include intelligent climate platform Tado and healthtech Avelios Medical, which both raised $32M (approximately €28.2M) in Q1.
James Wise, partner at Balderton Capital, says, “European AI ambition is only getting stronger. The AI Action Summit in Paris set the bar high on what needs to be done in Europe and it’s great to see that European startups and scaleups are rising to challenge. From healthcare to cyber security and automation, European AI companies are building solutions that are desperately needed and the pace of funding demonstrates that investors are excited about the continent’s technological potential.”
Now, let’s take a look at the 10 biggest European AI funding rounds this Q1, 2025.
HQ: London
Fund raised: €555.44M
Founder/s: Sir Demis Hassabis
Isomorphic Labs uses AI to change the drug design process from basic principles. Its technology allows researchers to explore new chemical possibilities and tackle difficult targets more quickly and accurately.
The company has developed advanced AI models that work together as a comprehensive drug design engine, aiming to change how drugs are created and impact medicine.
Isomorphic Labs is a spin-off from Alphabet’s AI research division, Google DeepMind, with many team members involved in developing AlphaFold, an AI model for predicting protein structures.
HQ: Stockholm
Fund raised: €250M
Founder/s: Hjalmar Nilsonne and Daniel Ek
Neko Health aims to develop a healthcare system that can help individuals maintain their health via early identification and preventative actions.
The company has developed a new medical scanning technology concept for broad and non-invasive health data collection that is fast, convenient, and affordable.
It checks moles and marks across the body, symptoms of metabolic syndrome, and risk factors for stroke and heart attack, along with blood sugar levels to assess pre-diabetes risk.
HQ: London
Fund raised: €174.5M
Founder/s: Steffen Tjerrild, Prof. Lourdes Agapito, Prof. Matthias Niessner, and Victor Riparbelli
Synthesia’s platform allows any enterprise user, from HR managers to marketers, to easily create high-quality instructional videos featuring stock or custom AI avatars.
The UK company claims that its clients report up to 95 per cent savings in production time. This amounts to thousands of dollars in reduced costs and increased engagement from their employees and customers.
Additionally, the London-based company also announced a strategic investment from Adobe Ventures.
HQ: London
Fund raised: €161M
Founder/s: Vishal Marria
Quantexa is an AI, data, and analytics software company pioneering Decision Intelligence to empower organisations to make trusted operational decisions with data in context.
Using the latest advancements in AI, the company’s Decision Intelligence platform helps organisations uncover hidden risks and new opportunities by unifying siloed data and turning it into the most trusted, reusable resource.
HQ: London
Fund raised: €154M
CEO: Mahdi Yahya
Ori is an AI infrastructure provider, providing AI computing resources and services to large corporates, enterprises, and fast-growth AI scaleups.
The company’s AI-native infrastructure is designed to meet the demands of large-scale AI model training, inference, and deployment while prioritising scalability, flexibility, and efficiency across industries.
HQ: Metzingen, Germany
Fund raised: €120M
Founder/s: David Reger
NEURA Robotics has developed collaborative robots (cobots) with advanced sensory capabilities, enabling them to see, hear, and perceive touch. These robots use reflexive sensory processing for autonomous and predictive actions.
The company developed MAiRA, the world’s first cognitive cobot combining AI and robotics, capable of autonomous operation and interaction with humans.
The German company is developing robots intended for collaboration with humans in industries like manufacturing, logistics, and healthcare.
HQ: Dublin
Fund raised: €120M
Founder/s: Eoin Hinchy and Thomas Kinsella
Tines provides a workflow platform empowering every team member with robust automation and orchestration capabilities.
The company launched native AI features and Workbench, a generative AI chat interface that enables users to query, gather, and analyse information, take real-time action on data across applications, and determine the next steps.
Various companies, including Coinbase, Databricks, GitLab, and Mars use Tines to transform their security and IT operations, enhancing productivity and streamlining operations while mitigating risk.
HQ: London
Fund raised: €71M
CEO: Eleanor Lightbody
Luminance specialised in legal AI, improving how businesses handle contracts.
With its unique large language model (LLM), the UK company provides specialised AI at each stage of contract management— from creation to negotiation and after it’s signed.
The company works with over 700 organisations in 70+ countries across all verticals and has a roster of blue-chip clients such as AMD, Hitachi, LG Chem, SiriusXM, Rolls-Royce, and Lamborghini.
HQ: Steinhausen, Switzerland
Fund raised: €71M
CEO: Chas Scarantino
RoomPriceGenie is a provider of revenue management systems (RMS) for independent hotels and groups.
The system helps ensure that room prices are set appropriately each day, which can lead to more bookings and better revenue management. It is now used by over 3,000 hotels of various sizes in 65 countries.
HQ: Munich
Fund raised: €49.4M
CEO: Tobias Schweiger
Hawk provides AI-powered anti-money laundering (AML), screening, and fraud prevention solutions. The company enables banks to move beyond the traditional rules-based approach to anti-money laundering and fraud. The company’s AI-powered technology increases accuracy to find more crime while reducing false positives.
