European tech funding slowed sharply in August, with companies raising €3.2 billion across 165 funding deals. Compared with July, when €8.6 billion was invested across 267 rounds, total funding fell by around 63 per cent, while deal volume declined by approximately 38 per cent.
Companies
Out of 165 deals in August, 10 companies raised more than €100 million each. The value of 32 deals remains undisclosed. The month’s biggest deal came from Swedish software company Lovable, which raised $400 million in a Series C round, doubling its valuation to $13 billion.
Industries
Artificial intelligence was the leading sector by investment volume in European tech startups in August 2026, capturing 20.9 per cent of the month’s total funding, at €677.1 million
