European Tech Funding Hits €5 Billion in January 2026 Amid Shifting Investment Landscape

European tech startups secured €5 billion across 265 deals in January 2026, marking a 9% drop in deal volume and a 24% decline in funding compared to the same period last year. Despite the broader slowdown, Germany emerged as a standout performer, with startups raising €1.8 billion—solidifying the country’s growing dominance in European tech funding.

The fintech sector remained a key driver of investment activity, attracting €1.5 billion during the month, while other segments showed more fragmented growth patterns across the region.

Expert Analysis: The Deep-Tech Revolution Reshaping Europe

Ion Hauer, Principal at APEX Ventures, shared his perspective on the evolving European tech investment landscape in the January Tech.eu Pulse:

“As a deep-tech investor, I see this shift from generalist growth to specialised hardware and sovereign AI as the defining trend of this decade. We are no longer just funding software, but supporting the fundamental technologies that secure Europe’s strategic autonomy and industrial resilience.”

Hauer predicts significant consolidation ahead as legacy industries acquire niche AI specialists to protect their infrastructure. “In the coming years, the most successful companies will be those addressing core industrial productivity and decarbonization by using energy-efficient, scalable technologies.”

For comprehensive analysis of European tech ecosystem performance, including detailed country breakdowns and exit activities, the full January report is available through Tech.eu.

Europe’s Top 10 Tech Funding Rounds: January 2026

These ten largest deals accounted for 52% of total monthly funding:

1. Cloover – $1.22 Billion

Berlin-based climate technology and fintech company building an AI operating system for energy independence. The platform integrates financing, workflow management, procurement, and energy optimization tools to accelerate renewable energy adoption. Total capital commitments reached $1.22 billion following a $22 million Series A equity round and $1.2 billion debt facility.

2. Parloa – $350 Million

Global AI technology company developing enterprise-grade AI agent management platforms for customer service automation. The cloud-based solution enables organizations to design, deploy, and scale AI agents across voice and digital channels. Series D funding tripled the company’s valuation to $3 billion in just seven months.

3. Mews – $300 Million

Cloud-native hospitality technology provider offering property management platforms for hotels, hostels, and serviced accommodations. The AI-driven platform automates reservations, billing, payments, and guest services while integrating with third-party tools. Funding will accelerate expansion across North America, Europe, and new markets.

4. Oviva – €200 Million

Digital health company delivering personalized technology-enabled support for weight-related and metabolic conditions. Combines individual coaching with digital apps to help users manage obesity and type 2 diabetes through sustainable lifestyle changes. Partners with healthcare systems across the UK, Germany, and Switzerland.

5. Terralayr – €192 Million

AI-powered data platform company enabling businesses to centralize, normalize, and analyze data from disparate sources. The technology automates analytics workflows and generates insights to support decision-making and performance optimization. Funding will expand grid-scale battery storage portfolio.

6. Harmattan AI – $200 Million

Defence technology company developing AI-powered autonomous systems and mission software for military applications. Products include unmanned aerial systems, intelligence surveillance and reconnaissance tools, and electronic warfare capabilities. Funding round valued the company at $1.4 billion.

7. Pennylane – $200 Million

Financial operations platform combining accounting, analytics, and workflow tools for businesses. The platform integrates bookkeeping, invoicing, reporting, and real-time data insights to simplify financial processes for SMEs. Investment will enhance R&D, particularly for German market expansion.

8. Preply – $150 Million

Online learning platform connecting students with tutors for personalized language and academic instruction. Uses data-driven matching to help learners find qualified tutors aligned with their goals. Funding secured at $1.2 billion valuation supports next growth phase.

9. D-Orbit – €110 Million

Space logistics and orbital services company developing technologies for satellite deployment and in-orbit transportation. Solutions include the ION Satellite Carrier for precise satellite delivery and hosted payloads. Funding supports international expansion and technology roadmap advancement.

10. Alvotech – €100 Million

Biosimilar medicines developer focused on improving access to affordable biologic treatments. Uses integrated approach from R&D through manufacturing to bring high-quality biosimilars to market. Senior term loan facility strengthens liquidity for 2026 strategic priorities.

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