Europe’s Q2 2026 Venture Funding Hits 4-Year High as UK and M&A Gain Momentum

Europe-based startups raised $24 billion in Q2 2026, the region’s strongest venture funding quarter in four years, Crunchbase data shows. That total was up around a third quarter over quarter and two-thirds higher than the $14.4 billion raised in Q2 2025. Four billion-dollar-plus rounds accounted for 25% of regional startup investment, while 42 companies raising $100 million or more captured 65% of funding.

U.K. startups raised $10.4 billion in Q2, widening the country’s lead in European venture funding. That total was near the U.K.’s 2021 peak of $10.8 billion and marked its third-largest funding quarter on record. Germany followed with $3.2 billion, France with $2.4 billion and Sweden with $2 billion.

Funding to Europe’s AI-focused companies reached more than $10 billion in Q2, the largest quarterly amount so far, according to Crunchbase data. Late-stage funding totaled $12.1 billion, up 90% year over year, while early-stage funding reached $8.6 billion across more than 250 Europe-based startups. Seed funding totaled $3.2 billion, including $1 billion raised by Ineffable Intelligence.

European startup M&A activity picked up in Q1 and kept momentum in Q2, even as public-market exits remained subdued. In Q2, 154 Europe-based, venture-backed companies were acquired for a cumulative $11.5 billion or more, Crunchbase data shows. The broader takeaway: European startup investment has been rising since Q4 2024, but the region still faces a competitiveness question against the U.S. and China.