UK telecommunications company TalkTalk secures £100M, Klarna receives UK EMI license, and the European DIGITAL SME Alliance criticizes the EU-US trade deal
In the bustling landscape of European tech, a week in mid-2025 saw over 75 funding deals worth more than €3.6 billion, with significant investments in the telecom, software, and energy sectors. The UK led the pack with €2.9 billion raised, followed closely by Germany and Sweden [1][2].
One of the most notable deals was Tractive, an Austrian pet tracking scaleup, acquiring its US competitor Whistle. This move is expected to strengthen Tractive's position in the global pet tech market [3].
Meanwhile, the funding scene continued to thrive in early August, with over 50 tech deals totaling approximately €967 million observed across Europe [1]. Notable investments included Psylink, which received €501,521 from Coinvest Capital for its next-gen mental health biotech solution, and Fluid Focus, which raised £640,000 to grow its screen time productivity app globally [3].
The European Commission is also supporting innovation, with 16 open calls designed for SMEs, startups, universities, and researchers. These calls offer funding for open internet solutions, privacy-preserving digital payment methods, and more, typically up to €50,000 [3].
In the world of venture funds, Atlantic Vantage Point (AVP) based in Paris aims to raise a €1.5 billion late-stage growth fund, backed by the European Investment Fund and AXA. This fund plans to invest in up to 18 companies with investment tickets between €50 million and €150 million [4].
Elsewhere, the European DIGITAL SME Alliance criticized the EU-US trade deal for potentially undermining local tech sovereignty [3]. Google is set to sign the EU's AI code of practice, while Klarna has been granted a UK EMI licence, aiming to position itself as a global digital bank [3].
The tech ecosystem is also witnessing a flurry of acquisitions. For instance, German AI startup Cognigy was acquired by US customer service firm NiCE in a near $1 billion deal, and Manchester-based Hydrogen Safe was acquired by IACS [3].
Innovative startups like Uniot, a IoT startup, received $25,000 from the YEP Accelerator, and Roadsurfer raised €85M. Pina Earth and Tree.ly merged to create Europe's largest forest carbon platform, and Montagu will acquire digital retail solutions provider IAI Group [3].
Moreover, the UK's AISI launched a coalition to protect against advanced AI, and Ore Energy connected the world's first grid-connected iron-air battery in Delft [3]. Tilla has raised €2M to accelerate global growth of its crew logistics platform, and Fal.ai raised $125M at a $1.5B valuation [3].
Finally, the Greek Guarantee Fund mobilised €600 million, having a major impact on SMEs. Cambridge Innovation Capital committed £100M to University of Cambridge spinouts, and Martin Klässner is building a better way to scale after a €250M exit [3].
The Luxembourg's digital innovation hub is smart, connected, and global, and SASHA's mission is reshaping the rules of the digital world to end image-based abuse. BlackWood Ventures closed its debut fund at $25M to back Europe's next-gen founders, and TildeLM is a solution for most LLMs that ignore Baltic and Eastern European languages [3].
These data points illustrate an active and diverse European tech ecosystem, with substantial capital flowing into various sectors, a mix of venture funds scaling, notable exits and acquisitions, and continued public funding opportunities supporting innovative projects.
- The funding for Europe's education-and-self-development sector received a boost as Psylink, a mental health biotech solution startup, secured €501,521 from Coinvest Capital.
- In the realm of deeptech, German startup Uniot, specializing in IoT, received $25,000 from the YEP Accelerator, marking significant investment in this sector.
