Over a Dozen European Startups Achieve Unicorn Status in First Half of 2025

European Startup Ecosystem Sees Strong Unicorn Growth in Early 2025

After a summer slowdown, Europe’s funding season is poised for a resurgence, buoyed by the emergence of more than a dozen new unicorns in the first half of 2025. Despite a decline in mega-rounds compared to the peak seen in 2021, twelve startups across diverse sectors have secured valuations exceeding $1 billion, underscoring sustained investor appetite in the region.

Quantum Computing and AI Lead the Charge

Finland’s IQM, specializing in quantum computing hardware and cloud platforms, became a unicorn in September following a $300 million Series B round, bringing its total funding to $600 million. CEO Jan Goetz highlighted IQM’s global footprint, noting its 54-qubit chips are operational in multiple continents with 150-qubit systems soon to be deployed.

In the AI and software domain, Framer, a no-code website builder focused on design, achieved a $2 billion valuation after a $100 million Series D round led by Meritech and Atomico. Framer intends to leverage its new capital to deepen enterprise engagement and enhance AI capabilities.

Rapid Growth in AI and Biotech Startups

Swedish AI startup Lovable reached unicorn status just eight months post-launch through a $200 million Series A round led by Accel, valuing it at $1.8 billion. Although registered in Delaware, Lovable’s core team and operations are Stockholm-based.

London’s Verdiva Bio, a biotech firm developing oral GLP-1 drugs akin to Ozempic, secured $410 million in Series A funding within its first year, instantly becoming a unicorn. Similarly, Neko Health, co-founded by Spotify’s Daniel Ek, raised $260 million in a Series B round, valuing the preventative health company at $1.8 billion. Neko plans to expand from its Stockholm and London hubs to the U.S. market.

Defense, Renewable Energy, and Space Tech Also Thrive

Several startups in defense and aerospace sectors also joined the unicorn club. Portuguese drone startup Tekever confirmed a valuation over £1 billion after a May funding round, with plans to invest £400 million in UK development over five years. Germany’s Isar Aerospace became a unicorn following a €150 million convertible bond agreement, while Quantum Systems raised €160 million in Series C funding to scale autonomous drone production globally.

British renewable energy company Fuse Energy, founded by ex-Revolut executives, reportedly crossed the $1 billion valuation mark in July, according to The Times.

Other Noteworthy Unicorns

Film-streaming service Mubi raised $100 million in June at a $1 billion valuation, competing as a curated indie alternative to Netflix. French homomorphic encryption startup Zama also reached unicorn status with $57 million in Series B funding, focusing on data security via advanced cryptographic techniques.

German conversational AI platform Parloa secured $120 million in Series C funding at a $1 billion valuation, less than a year after its previous funding round, signaling strong growth momentum. Dublin-based Tines, specializing in AI-driven workflow automation, raised $125 million in February at a $1.125 billion valuation, expanding its presence across security and infrastructure sectors.

Outlook for European Tech Funding

While the scale of mega-rounds has diminished since 2021, the diversity and pace of unicorn formations in Europe reflect a maturing startup ecosystem with robust investor confidence. The prominence of AI-related ventures alongside biotech, quantum, and defense technologies suggests strategic capital allocation toward transformative innovation. Market watchers will be attentive to how these startups convert funding into scalable products and global market penetration in the coming months.