According to the 2026 GII report, six of the world's top 10 most innovative economies are European, with Switzerland leading the ranking for the 16th consecutive year. Despite this strong research position, the region accounted for only 9.9% of global venture capital deal value in the first two quarters of 2026, compared to 72.6% for North America and 15.9% for Asia.
Global venture capital deal value rose by approximately 28% in 2025 to €454 billion, with AI representing 53% of that total. In the first half of 2026, AI's share of global VC funding reached 77%. Meanwhile, the total number of deals declined by 1.4%, marking the fourth consecutive annual drop.
European venture firms have raised roughly €9.6 billion in capital so far in 2026. Notable fund announcements include Kembara's €750 million first close, €500 million strategies from DTCP and E2D, and €432 million raised by QuantumLight. Earlybird closed €360 million, while Mouro Capital and Seedcamp raised €344 million and €279 million respectively.
Deep science startups, which include fields like robotics and quantum computing, reached a valuation of €6.7 trillion in 2025, a 23% increase from 2024. These companies attracted €108 billion in venture capital in 2025. The United Kingdom hosts 2,133 such startups, while Estonia saw a 313% growth in the number of deep science firms between 2020 and 2025.
