According to Crunchbase data, financing for European ventures reached $17.6 billion in the first quarter of 2026. This is an increase of almost 30% year-on-year and marks the second consecutive quarter of growth. As was the case across the world and in North America, the principal driver was artificial intelligence, which accounted for greater than 50% of Europe’s total funding for the first time this quarter.
As was the case in the fourth quarter, the first quarter in terms of funding amounts was significantly higher than the previous five quarters, signaling that European enterprise funding could also be gaining momentum.
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Despite this, more capital flowed into fewer firms in Europe in the first quarter, and transaction volumes fell by 40% year-on-year. Much of the decline occurred at the seed stage (down 44%) and early stage (down 30%), while late-stage deal volume was the same as in the previous 4 quarters.
AI above 50%
Funding for European AI startups increased significantly last quarter, reaching $9.2 billion, accounting for greater than half of total enterprise funding in the region. This marks the highest percentage ever for this sector in a quarter.
The top 4 rounds to European-based startups in the first quarter were to AI-related firms. Data center builder Scaleautonomous driving programmer Wayveand a pioneering physical artificial intelligence laboratory Advanced machine intelligence raised over a billion each and AI legaltech LegorasTotal funding exceeded $500 million.
The UK and France saw year-on-year growth
Startups from the UK and France raised more funding in the first quarter, with $7.4 billion and $2.9 billion respectively. Germany-based startups raised $1.9 billion 12 months over 12 months.
France has emerged as a European leader in pioneering artificial intelligence laboratories. In the last quarter it was based in Paris Advanced machine intelligencefounded by former Meta AI boss Yann LeCunraise $1 billion in the largest-ever seed funding round on the continent. This transaction was also the second financial transaction value over a billion dollars for the European border laboratory Mistral AIit made $2 billion last 12 months.
Europe in stages
In the first quarter, funding for European late-stage startups almost doubled in comparison with last 12 months. The largest rounds spanned a variety of sectors including AI hardware, fintech, agentic AI, productivity software, sensors, defense, e-commerce and energy.
A complete of $9.2 billion was invested across 83 late-stage deals, representing a 91% year-over-year increase.
Funding for early-stage startups in the region is down about 20% from a 12 months ago, based on Crunchbase data. Early-stage investments totaled $5.3 billion in the first quarter across greater than 240 financing rounds. In early-stage financing, larger A-series cartridges dominated in semiconductors, energy and healthcare.
Seed funding reached $3.1 billion in the first quarter across greater than 790 deals. Total funding increased by 50% year-over-year, but mainly because of the $1 billion round for Advanced Machine Intelligence.
To sum up
Larger rounds in key AI sectors drove funding growth for European startups in the first quarter. Last quarter, investors from Europe and the US poured the largest funds into artificial intelligence infrastructure, pioneering laboratories, autonomous systems and applications.
Overall, Europe is in line with global trends as capital is concentrated in the largest deals in sectors that are developing because of artificial intelligence.
Methodology
The data in this report comes directly from Crunchbase and is based on reported data. Data is from April 2, 2026.
Please note that data transfer delays are most noticeable in the earliest stages of a enterprise, with seed funding amounts increasing significantly after quarter/12 months end.
Please note that each one financing amounts are in US dollars unless otherwise noted. Crunchbase converts foreign currency to U.S. dollars at the spot rate in effect on the date financing rounds, acquisitions, IPOs and other financial events are reported. Even if these events were added to Crunchbase long after the event was announced, foreign currency transactions are converted at the historical spot price.
Glossary of financing terms
Seeds and Angels consist of seed, pre-seed and angel rounds. Crunchbase also includes enterprise rounds of unknown series, equity crowdfunding, and convertible notes with a size of $3 million (in U.S. dollars or a U.S. dollar equivalent) or less.
The early stage consists of Series A and Series B rounds, as well as other types of rounds. Crunchbase includes enterprise rounds of unknown series, corporate ventures and other rounds above $3 million and those valued at lower than or equal to $15 million.
The Late Stage consists of Series C, Series D, Series E, and later lettered expedition rounds following the “Series [Letter]” naming convention. Also included are enterprise rounds of unknown series, corporate ventures, and other rounds over $15 million. Corporate rounds are included only if the company has raised seed financing as part of a series enterprise financing round.
A technology development is a private equity round led by a company that has previously raised a “venture” round. (Basically any round from the pre-defined stages.)