Hello followers! Today, we’re diving into the exciting world of European startups that are hitting big in 2025, becoming unicorns and shaking up their sectors!

Funding in Europe is bouncing back after summer slowdown, with 12 startups reaching over a billion dollars in valuation in the first half of the year. While the mega-rounds of 2021 are less common, this year’s numbers show promising growth, especially in biotech, defense tech, and artificial intelligence.

One standout is Lovable, a Swedish AI startup, which became a unicorn just eight months after launching, raising $200 million at a $1.8 billion valuation. Most of its team is based in Stockholm, even though it’s registered in Delaware. Meanwhile, Fuse Energy from the UK, founded in 2022 by former Revolut leaders, raised a round valuing it above $1 billion, powering up its renewable tech.

June brought more unicorns: Mubi, a film-streaming service, secured $100 million led by Sequoia, making it a billion-dollar company. French firm Zama, specialized in data security through homomorphic encryption, also hit the billion-dollar mark with a $57 million Series B.

Tech giants like Netflix and Sequoia Capital are participating in events like Disrupt 2025, highlighting their support and interest in startups. German space startup Isar Aerospace achieved unicorn status after a substantial €150 million funding deal, solidifying Europe’s growing space tech sector.

May saw notable progress: Portuguese drone firm Tekever and German defense tech company Quantum Systems both became unicorns after significant funding rounds, investing heavily in expansion and AI-enhanced autonomous systems. Parloa, a German AI customer service platform, raised $120 million at a $1 billion valuation, just months after a $66 million Series B.

In early 2025, London’s biotech Verdiva Bio raised $410 million right after launch, instantly becoming a unicorn. Swedish health startup Neko Health, co-founded by Spotify’s Daniel Ek, also joined the billion-dollar club with a $260 million Series B to expand its preventative health services globally.

That wraps up our tour of Europe’s rising startup stars — with sectors hot among investors like biotech, defense tech, and AI, the future looks bright for European innovation!