European tech sees €2B week as funding activity picks up

European tech startups secured more than €2 billion across 65 funding rounds last week, according to data tracked by tech.eu. The total marks a notable increase after August’s sharp decline in investment. The week also included four exits or M&A transactions, though the details of these deals remain limited.

The most significant round was Portuguese aerospace and defense firm Tekever’s $580 million Series D, led by UC Investments, valuing the company at $6.4 billion. The deal stands out as one of the largest in recent months, following UC Investments’ first direct European bet, which we covered on September 24. Tekever’s round accounted for a substantial portion of the week’s total, raising questions about whether other sectors will see similar levels of investment.

Beyond Tekever, the remaining funding was spread across a mix of early- and growth-stage deals. Recent trends, including our September 5 report, suggest that seed and Series A rounds have been more active than later-stage investments, though last week’s data does not provide a clear breakdown by stage. The geographic distribution of deals also appears varied, with no single hub dominating the activity.

The uptick in funding comes after a period of caution among investors, though it remains unclear whether this represents a temporary rebound or a more sustained shift. The sectors driving the largest rounds—such as aerospace and defense—have seen increased attention, potentially due to geopolitical factors or government-backed opportunities. For startups outside these areas, the path to securing capital may still be uncertain.

The coming weeks will offer more insight into whether this funding activity is an isolated event or the beginning of a broader recovery. If the trend continues, it could signal renewed confidence in European tech. If not, the uneven distribution of capital may reinforce existing challenges for startups seeking growth-stage investment.

Sources: tech.eu