Europe’s 2025 Unicorn Boom Driven by AI and Deep Tech

Funding season in Europe is reawakening after the summer lull, and the early returns from 2025 are encouraging: at least a dozen startups reached unicorn status in the first half of the year. Mega-rounds aren’t as common as in 2021, but that hasn’t stopped rapid valuations — and a clear signal of where investor capital is concentrating.

New European unicorns in 2025

• Lovable — Stockholm-based AI coding startup that raised $200M Series A at a $1.8B valuation.
• Fuse Energy — UK renewable founded by ex-Revolut execs, reported >$1B valuation.
• Mubi — curated film streamer raised $100M led by Sequoia, hitting $1B.
• Zama — French homomorphic encryption specialist, $57M Series B pushed it past $1B.
• Isar Aerospace — German launch company secured €150M and unicorn status.
• Tekever — Portugal dual-use drones confirmed >£1B valuation and major UK investment plans.
• Quantum Systems — German autonomous drone maker raised €160M Series C.
• Parloa — German conversational AI for customer service, $120M Series C at $1B valuation.
• Isomorphic Labs — DeepMind spinout for AI-driven drug discovery raised $600M.
• Tines — Dublin workflow automation startup reached $1.125B valuation after $125M Series C.
• Verdiva Bio — London biotech raised $410M Series A with oral GLP-1 candidates.
• Neko Health — Swedish preventative health startup raised $260M at $1.8B.

What this funding wave tells us

Two clear themes stand out: AI is the recurring winner, and deep-technology bets — biotech, space and dual-use defense tech — continue to attract patient capital. Investors are balancing excitement for AI-led product breakthroughs with strategic bets in infrastructure and national security-related tech.

What should founders and corporate innovators do next? Startups need to convert hype into durable revenue models and operational rigor. Corporates should scan these market signals to partner, acquire, or pilot technologies that accelerate digital transformation. And public-sector planners must weigh the balance between supporting innovation and managing export, security and ethical risks.

Think of this moment as a new tide: it lifts many boats, but those built for scale and compliance will sail farther. For investors, that means doubling down on diligence around IP, regulatory paths (especially in biotech and defense) and the operational scalability of AI models.

QuarkyByte’s approach is to translate these headline rounds into tactical signals: mapping talent hubs, stress-testing go-to-market assumptions, and quantifying regulatory and supply-chain risks so decision-makers can move quickly with confidence. Whether you’re a VC tracking pipeline risk or a public agency drafting industrial strategy, the data points behind these unicorns matter.

The rest of 2025 will tell if Europe can convert valuations into category leaders at scale. For now, the message is clear: capital is flowing, AI is central, and deep tech is back on the map.