While deal volume fell 11 per cent month-on-month, European startups raised more than twice April’s total, driven by large infrastructure, AI and cloud funding rounds.
Despite a decline in deal activity, May saw a significant increase in capital invested across European tech compared to April.
A total of 258 funding deals were announced in May, down from 290 in April, representing an 11 per cent decline in deal activity. Despite the lower number of transactions, European startups raised €10.5 billion, more than double the €5.1 billion recorded in April, pointing to a month driven by larger funding rounds.
Companies
Out of 258 deals in May, 15 companies raised more than €100 million each. The value of 31 deals remains undisclosed.
The month’s biggest deal came from UK-based data centre operator Pure Data Centres (Pure DC), which secured more than €2.3 billion in debt financing. Together with Nscale’s €675 million debt raise, the deals highlight strong investor confidence in the infrastructure needed to support growing demand for AI and cloud computing.
Industries
Cloud was the leading sector by investment volume in European tech startups in May 2026, capturing 28.6 per cent of the month’s total funding, at €3 billion.
Countries
The UK emerged as the top fundraising market in May, securing €7.9 billion over 70 transactions.
Exits
Europe recorded 39 exit activities in May, with M&A activity characterised by strong cross-border consolidation across the region. Germany emerged as the largest source of acquisition targets, while France, the UK, and Germany were among the most active acquirors, highlighting the increasingly interconnected nature of Europe’s tech ecosystem.
Grab the PDF version of this report with a foreword by Ben Gibson, Partner, Ashgrove Capital, for even more critical insights.