August European tech funding falls 63% as dealmaking slows
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 b...
In August 2026, European tech funding experienced a significant downturn, with a staggering 63% decline in overall investment. Companies raised a total of €3.2 billion across 165 funding deals, compared to €8.6 billion in July, when 267 rounds were completed. The decline in deal volume was even more pronounced, decreasing by approximately 38%.
Out of the 165 deals executed in August, 10 companies managed to secure investments exceeding €100 million each. However, the value of 32 deals remains undisclosed. The month's most substantial deal was completed by Swedish software company Lovable, which raised $400 million in a Series C round. This infusion of capital doubled Lovable's valuation to an impressive $13 billion.
Artificial intelligence emerged as the leading sector in terms of investment volume, accounting for 20.9% of the total funding in August. European tech startups in the AI domain attracted a total of €677.1 million in August. The United Kingdom emerged as the top fundraising market, securing €1.4 billion across 51 transactions.
Although the number of exits fell, the European tech ecosystem remained relatively active in August. A total of 37 exit transactions were recorded during the month, with Germany standing out as the most active market, accounting for 12 exits, or around 32% of the total. Following Germany, the United Kingdom witnessed six exits.
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