Funding season is restarting in Europe, with investors expecting to add several new unicorns in the coming months. Despite fewer mega-rounds than in 2021, a dozen startups passed the$1 billion mark in the first half of 2025.

AI, biotech, defence technology, and renewable energy are among the sectors attracting major backing. Recent unicorns include Lovable, an AI coding firm from Sweden, UK-based Fuse Energy, and Isar Aerospace from Germany.

London-based Isomorphic Labs, spun out of DeepMind, raised$600 million to enter unicorn territory. In biotech, Verdiva Bio hit unicorn status after a$410 million Series A, while Neko Health reached a$1.8 billion valuation.

AI and automation continue to drive investor appetite. Dublin's Tines secured a$125 million Series C at a$1.125 billion valuation, and German AI customer service startup Parloa raised$120 million at a$1 billion valuation.

Dual-use drone companies also stood out. Portugal-based Tekever confirmed its unicorn status with plans for a ￡400 million UK expansion, while Quantum Systems raised E160 million to scale its AI-driven drones globally.

Film-streaming platform Mubi and encryption startup Zama also joined the unicorn club, showing the breadth of sectors gaining traction. With Bristol, Manchester, Munich, and Stockholm among the hotspots, Europe's tech ecosystem continues to diversify.