Good morning Bilal,

European startups raised €23.8bn in equity funding in the first half of 2025 — an 11.5% fall compared to H1 last year but up on H2 2024 by 21%.

Sifted’s H1 2025 report launches today — exclusive to Pro subscribers who benefit from early access until general release on Thursday. 

Featuring insights from Roxanne Varsa, HSBC Innovation Banking, Balderton Capital, Creandum, Earlybird and more, this must-read report maps out investment and M&A activity across European tech in the first half of the year.

The headlines: unsurprisingly, agentic AI is Europe’s fastest-growing sector; Spanish and Munich funding is up 132% and 115% respectively; and deeptech attracted the highest median deal size of any tracked vertical. For that and lots, lots more, access the report here.

Elsewhere: 

• German drone maker Stark acquires ‘AI pilot’ startup Pleno 
• Inside Helsing: A look behind the curtain at Europe’s AI defence unicorn
• 12 UK soonicorns to watch 

How to combat risk that scales with you

Scaling fast is a badge of honour but so is staying secure. On July 23, hear from SEON, Allica Bank and many more rethinking onboarding and risk detection to grow confidently, cut fraud and protect trust at scale. Real growth shouldn’t come with compromises.

🤝 German drone maker Stark acquired autonomous pilot startup Pleno for an undisclosed sum. 

💰 Lloyds Banking Group is apparently in talks to buy London-based fintech Curve, according to Sky News.

👀 Defence startup Helsing held an unusually open media day last week — with fresh details about its new products and future ambitions. 

🦄 Which UK companies could soon hit a $1bn valuation? We broke down the 12 UK soonicorns to watch.

Rising 100: The ultimate B2B SaaS startup list
Our latest report highlights the 100 most promising SaaS startups in Europe. This year’s edition dives into the next up-and-comers, reveals a levelling of the AI playing field across countries and discusses the surge in AI-native companies. Uncover the latest market trends in our recent report.

🤖 Meet Europe’s B2B SaaS Rising 100

Our latest report highlights the 100 most promising SaaS startups in Europe. This year’s edition dives into the next up-and-comers, reveals a levelling of the AI playing field across countries and discusses the surge in AI-native companies.
See the rising stars

🚀 Sifted 100: DACH & CEE Leaderboard

Meet the fastest-growing startups in 2025 across Germany, Central and Eastern Europe in 2025 and dig into the key trends shaping the ecosystem. Find out more.

🇫🇷 Sifted 100: France & Southern Europe Leaderboard 

Discover the regions' startups driving real momentum — and where smart capital is flowing next. Find out more. 

If you’d like to submit a deal, get in touch. 

Berlin-based Motor AI, which develops autonomous driving technology informed by neuroscience, raised €17.1m in seed funding. Segenia Capital and Ecapital led the round.

Oslo-based Two, a B2B payments platform, raised €13m in funding. Idékapital and Shine Capital led the round and was joined by investors including Investinor, Antler, Sequoia Capital, Alliance Ventures, Arkwright and LocalGlobe.