Europe’s Unicorn Boom: Over 10 Startups Hit $1B in 2025
▼ Summary
– European funding season is restarting with 12 startups reaching unicorn status in the first half of 2025 despite fewer mega-rounds than 2021.
– Hot investment sectors include biotech, defense tech, and AI, with AI being particularly prominent among new unicorns.
– Notable new unicorns include Swedish AI startup Lovable ($1.8B valuation) and British renewable energy company Fuse Energy ($1B+ valuation).
– Multiple German startups achieved unicorn status including space company Isar Aerospace and dual-use drone developer Quantum Systems.
– The unicorn cohort spans diverse sectors including film streaming (Mubi), encryption (Zama), health tech (Neko Health), and biopharma (Verdiva Bio).
Europe’s startup scene is witnessing a remarkable surge in unicorn companies, with more than ten ventures achieving billion-dollar valuations in the first half of 2025 alone. Despite a noticeable cooling in mega-funding rounds compared to the peak years, the continent continues to produce high-value startups across cutting-edge sectors like artificial intelligence, biotechnology, and defense technology. This momentum signals robust investor confidence and sets a promising tone for the remainder of the year.
In July, Swedish AI coding platform Lovable achieved unicorn status in just eight months, securing a $200 million Series A round led by Accel at a $1.8 billion valuation. Though registered in Delaware, the company maintains a strong operational presence in Stockholm. Also that month, UK-based renewable energy firm Fuse Energy, founded by former Revolut executives, reportedly crossed the $1 billion valuation mark according to sources.
June proved to be a particularly active month. Film-streaming service Mubi raised $100 million in a round led by Sequoia Capital, reaching a $1 billion valuation. The company, which began as a curated platform in 2007, now produces and distributes films in addition to streaming. French encryption specialist Zama also joined the unicorn club after a $57 million Series B, advancing its work on homomorphic encryption technology. German aerospace company Isar Aerospace secured a €150 million convertible note from Eldridge Industries, pushing its valuation past the billion-dollar threshold.
May saw three new European unicorns emerge. Portuguese drone manufacturer Tekever confirmed a previously undisclosed valuation exceeding £1 billion, with backing from Ventura Capital, Baillie Gifford, and the NATO Innovation Fund. German dual-use technology firm Quantum Systems raised €160 million in Series C funding to expand its autonomous drone systems. Another German standout, conversational AI provider Parloa, reached a $1 billion valuation after raising $120 million in Series C funding.
March brought a major milestone for Isomorphic Labs, an AI-driven drug discovery platform spun out from Google’s DeepMind. The London-based company raised $600 million in its first external funding round, led by Thrive Capital with participation from GV and Alphabet, firmly establishing its unicorn status.
In February, Dublin-based Tines achieved a $1.125 billion valuation following a $125 million Series C round. The company specializes in AI-powered workflow automation and now handles over a billion automated actions weekly for its clients.
January featured two significant entries into the unicorn club. London biotech firm Verdiva Bio raised a massive $410 million Series A to develop its oral GLP-1 drug, similar to Ozempic. Swedish health-tech company Neko Health, co-founded by Spotify’s Daniel Ek, secured $260 million at a $1.8 billion valuation to expand its preventive full-body scanning services globally.
This wave of new unicorns underscores Europe’s growing influence in the global innovation landscape, with diverse industries attracting substantial investment and driving technological advancement.
(Source: TechCrunch)
