Investors are pouring billions of euros into European AI and defence tech start-ups, backing companies seen as critical to Europe’s economic competitiveness and security.
Total European venture capital investment rose 5 per cent to €66bn in 2025, a post-pandemic high, according to PitchBook. Those gains were driven by big deals for the continent’s top AI and defence companies.
Several companies in those sectors are in talks to raise fresh funding at sharply higher valuations, according to people familiar with the discussions.
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