European Healthtech and AI Startups Raise $13.9B in Q1 2025
European healthtech and AI startups secured $13.9 billion in venture capital funding in Q1 2025, according to Dealroom data. This figure marks a 2% year-over-year increase and matches Q4 2024 totals. This reflects strong investor confidence.
More than 40% of the funding came from international sources, showing a rebound in global interest.
This includes the highest level of US investment into Europe for Q1 since 2021.
The report highlights renewed global belief in Europe’s ability to build competitive tech solutions. Investors are recognizing scalable innovation, especially in health and AI technologies.
Also read: Ocient Enters Growth Stage with $132M Series B Funding
Healthtech Leads with Massive Investment Surge
Healthtech startups in Europe attracted $4.3 billion in Q1 alone. This marks a 65% jump from the same period last year .This marks the sector’s fourth straight quarter as the top funding recipient in the region. Mega-rounds powered the surge, including Isomorphic Labs’ $600 million for AI drug discovery.
Verdiva Bio raised $411 million for obesity treatment, while Neko Health received $260 million for preventive care.
The consistent growth shows the sector's importance in addressing urgent healthcare challenges across Europe.
AI Startups Claim a Quarter of VC Funding
AI startups in Europe raised $3.4 billion this quarter, accounting for 25% of total VC funding. That’s up from only 7% a decade ago, reflecting how far AI has come in driving innovation. Drug discovery topped AI investments, pulling in $949 million. Industrial tech startups followed, securing $669.3 million.
Without AI, total investment would drop 10%, proving its growing importance across industries. As AI tools expand, they reshape healthcare, tech, and data-driven sectors across Europe and beyond.
