Tech Investments in Europe Surge by 18% in July
In July 2022, Europe's tech sector continued to show signs of resurgence and growth, with significant investments across various sectors.
One of the standout trends was the surge in artificial intelligence (AI) startups, as evidenced by mega-rounds that attracted strong investor interest. These investments, particularly in areas like generative AI and automation, are expected to accelerate through 2024 and 2025.
Fintech remains a backbone of European tech investment, with the UK, France, and Germany leading in deal volume and capital raised. However, the overall fintech investment volume, while resilient, remains below peak levels due to a shift away from “growth at all costs” funding and more cautious venture capital activity.
Purpose-driven tech sectors like defense and biotech have also seen strong investment surges. Notably, drone companies and AI-driven drug discovery firms raised large funding rounds, reflecting a growing focus on impactful technologies.
Climate tech, a major VC theme over recent years, experienced a funding decline of about 40% in H1 2022 compared to 2021. However, some standout deals persisted, such as €130 million raised by Munich-based nuclear fusion startup Proxima Fusion, amid rising governmental support for energy innovation.
The macroeconomic context of modest economic expansion and regulatory developments also played a role in shaping the tech investment landscape. Mergers & Acquisitions (M&A) were prominent in July, accompanying scarce growth funding and new regulatory risks impacting the market landscape.
In Switzerland, the Genolier Innovation Hub aims to solve the 17-year lab-to-bedside healthtech lag. Elsewhere, Sendr is eyeing growth after receiving a £250,000 investment. CuspAI, on the other hand, is aiming to unlock AI's potential in climate materials, targeting $100M.
Investments were also made in various startups across Europe. Evolbe, a Spanish startup, raised €500,000 with support from Eoniq.fund. WiseBee, a Bulgarian startup, raised $2.5M to deliver autonomous cyber defense to mid-market. Flox, a Swedish startup, raised $1M to redefine human-wildlife coexistence.
Resilience Media secured seed funding to build the voice of NATO's defense tech sector. Largo.ai acquired QuMind to expand AI-driven market insights. Berlin-based lemon.markets merged with dwpbank to expand digital brokerage services.
Pulse Clean Energy received €252.5M in green financing. Energy Vault, a subsidiary of a SoftBank-backed company, secured €258M to build and operate energy storage assets.
This week, more than 40 tech funding deals worth over €848 million were tracked across Europe. The Italian Founders Fund raised €35 million from CDP Venture Capital's Digital Transition Fund. Smart Infrastructure Ventures launched €30M SIVentures II Fund.
In the climate tech sector, Beyond the AI buzz, Nina Capital expressed a critical view on healthtech hype. IntuiCell turned decades of controversial neuroscience into breakthrough AI technology.
UAV Destinus acquired Daedalean in a $225M deal to boost AI capabilities. A new venture-building programme for drug development startups was launched by a Dutch-based company.
US fintech Brex is coming to the EU. Largo.ai acquired QuMind to expand AI-driven market insights. Wireless Logic acquired Zipit Wireless. EWOR named Simon Dussart as COO to scale its €60M founder fellowship.
In a significant move, Luvly is tackling the toughest challenge in getting Europeans out of SUVs - scaling. The company aims to make electric vehicles more accessible and affordable for the masses.
In summary, Europe's tech sector in July 2022 was characterized by a blend of high-value AI funding rounds, sustained fintech investment amid cautious funding environments, targeted growth in defense and biotech driven by geopolitical and healthcare imperatives, and evolving climate tech investment trends—all within a macroeconomic context of modest economic expansion and regulatory developments.
- The healthtech sector in Switzerland is aiming to reduce the 17-year lab-to-bedside lag with the Genolier Innovation Hub.
- In the entertainment sector, US fintech Brex is coming to the EU.
- Education-and-self-development startups, like Evolbe in Spain and WiseBee in Bulgaria, also received significant investments in July.
