August European tech funding falls 63% as dealmaking slows
Tech.eu Cate Lawrence
European tech funding slid to €3.2bn in August, down 63% from July. AI led the month, and Lovable’s $400m round was the biggest cheque.
Based on reporting by Tech.eu, Cate Lawrence — read the original for the full story.
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European tech funding hit the brakes in August. Startups across the region raised €3.2 billion in 165 deals, down from €8.6 billion in July across 267 rounds. That is a sharp drop in both money and activity, and it shows how quickly the market cooled over one month.
The month still had a few heavy hitters. Ten companies each raised more than €100 million, while 32 deal values were not disclosed. The biggest announced round went to Swedish software company Lovable, which pulled in $400 million in a Series C and doubled its valuation to $13 billion.
Artificial intelligence kept its place at the front of the pack. AI startups took 20.9 per cent of all European tech funding in August, or €677.1 million. That is a meaningful share, even in a slower month.
The UK was the strongest fundraising market, with €1.4 billion across 51 transactions. On the exit side, Europe logged 37 transactions in August. Germany led there with 12 exits, followed by the UK with six. So even as fundraising sagged, dealmaking did not disappear; it just looked more selective and a lot less exuberant.
My take — AI-written commentary, not fact-checked reporting
This is the part of the cycle everyone pretends not to notice: the money never vanished, it just got choosier. AI still hoovers up cash, the UK still pulls in the most funding, and the rest of the market gets to enjoy a calmer, less theatrical August. That is not a crisis, just a reminder that the easy-money phase is over.
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