Q1 data from Dealroom reveals that European health tech and AI companies continue to attract significant interest from global venture capital investors, with $13.9 billion raised in the first quarter of 2025.
This represents a 2 per cent year-over-year increase compared to the same time last year and matches investment levels from the previous quarter.
Over 40 per cent of investment came from international investors, a recovery of international interest in the global potential for startups across the continent, and the best Q1 for US investment into Europe since 2021.
Healthtech dominates
Healthtech dominated the investment landscape with $4.3 billion in funding, up 65 per cent YoY, and it came out on top for its fourth consecutive quarter. This was thanks to several mega-rounds in the sector, including Isomorphic Labs ($600 million for AI drug discovery), Verdiva Bio ($411 million for obesity biotech) and Neko Health ($260 million for preventative healthcare).
AI Startups secure 25 per cent of European VC funding in Q1
AI startups raised 25 per cent of all European VC capital this quarter, up significantly from just 7 per cent a decade ago.
This surge reflects the growing importance of the technology across several industries, with European AI startups raising $3.4 billion – the second-highest quarterly total to date, behind only Q1 2022 and up 55 per cent compared to the same time last year.
AI for drug discovery emerged as the leading segment with $949 million in investment, while industrial technology attracted $669.3 million.
Stripping out AI investment, total European investment would be down by 10 per cent, demonstrating the significant impact this technology is having across Europe and the world.
Julia Hawkins, General Partner at LocalGlobe, said:
“The rise and rise of European health tech isn’t a fluke, it demonstrates the sustained investment in extraordinary founders across the region who are developing globally impactful companies.
As health challenges continue to surge from mental health to ageing populations, the solutions being built in Europe are sorely needed to create stronger, more resilient healthcare systems. I’m looking forward to seeing how this growth continues throughout 2025.”