European tech firms raised €6.1B in Q1 2025, down 30% YoY but up 70% from 2023. Debt financing is gaining traction. Fintech leads with €1.2B secured.
European tech companies secured €6.1 billion in funding in the first quarter of 2025. Compared to previous years, this marks a 30% decline from the same month in 2024 but a 70% increase from the same month in 2023, reflecting both market challenges and long-term growth.
Four of the ten largest funding rounds in the first quarter of 2025 were structured as debt financing instead of traditional equity. These funds primarily backed initiatives like fleet expansion, national digitalization, and enhanced connectivity projects, signaling a strategic shift in investment approaches.
Fintech remained the leading sector, securing €1.2 billion in funding and five of the ten largest deals in Q1 2025. Its continued strength reflects investor confidence in digital payments, embedded finance, and alternative lending, which drive innovation in Europe’s tech ecosystem.
Jon Ferguson, Partner at AshGrove Capital, commented on the numbers within the European tech investment landscape, “Companies with top-tier performance metrics continue to command valuations at historic premiums, while those with slower growth or weaker profitability are struggling to secure equity funding on attractive terms. As a result, many founders and shareholders are turning to alternative financing, such as debt, to fuel growth and improve profitability before returning to the market.”
At AshGrove, we focus on B2B software and services, sectors that continue to attract capital because of their recurring revenues, strong unit economics, and critical role in enterprise operations. Our portfolio demonstrates this firsthand.
Here is the list of the quarter’s 10 biggest European tech deals, which collected around 54% of this month’s total.
1Finn (Germany), Amount raised: €1B
FINN is a leading provider of car subscriptions, offering customers a flexible and convenient way to use vehicles from various brands. The company handles all aspects, such as insurance, financing, registration, taxes, and maintenance, allowing customers to subscribe to a car with just a few clicks and deliver it directly to their doorstep.
FINN is also committed to climate protection by supporting certified climate projects and offsetting the CO₂ footprint of each vehicle. The company secured €1 billion in ABS financing for fleet expansion.
2Your.World (Netherlands), Amount raised: €800M
Your.World is a leading European platform specializing in online solutions. It supports over one million customers in establishing and expanding their online presence.
Since entering the online services market in 2016, Your.World has rapidly expanded organically and through acquisitions, offering a broad range of recurring services while maintaining high customer intimacy. Their services encompass online productivity (workspaces), domains and web hosting (web presence), digital trust (security), and digital transformation services.
Your.World has secured €800 million in long-term capital to drive its expansion in the European SME market through strategic acquisitions and investments in managed IT, cloud infrastructure, and online productivity solutions.
3Lion Storage (Netherlands), Amount raised: €350M
Lion Storage is a pioneering developer and operator of large-scale battery energy storage systems (BESS) aimed at accelerating the transition to renewable energy.
Their utility-scale storage solutions, starting at 100 MW capacity and connected to the high-voltage electricity grid, provide essential services such as grid balancing, congestion management, and renewable energy integration.
Lion Storage, part of Return, has secured over €350 million in non-recourse project financing for Mufasa, the largest fully funded utility-scale battery storage project in the Netherlands.
4Inwit (Italy), Amount raised: €350M
Infrastructure Wireless Italiane S.p.A. (INWIT) is Italy’s leading tower operator, specializing in building and managing shared digital infrastructures supporting nationwide wireless connectivity.
As a neutral host, INWIT provides over 23,000 towers and 6,900 remote units, facilitating the transmission equipment of all major national mobile operators. Their services include hosting on towers, outdoor coverage, backhauling, and indoor coverage solutions such as Distributed Antenna Systems (DAS) and small cells, enhancing connectivity in areas with high demand like stadiums, stations, historic villages, hotels, and museums.
The European Investment Bank has provided Inwit with a €350 million loan to enhance digitalization and connectivity across the country, ensuring improved mobile coverage, including in remote rural areas.
5365 Finance (UK), Amount raised: £150M
365 Finance is a financial services provider specializing in revenue-based financing solutions for small and medium-sized enterprises (SMEs).
Their flagship product, the merchant cash advance, offers unsecured funding ranging from £10,000 to £400,000, with flexible repayment terms tied directly to daily credit and debit card sales. This approach allows businesses to repay as they earn, with repayments automatically deducted as a percentage of daily card transactions. The application process is swift, with funding decisions typically made within 24 hours, and no fixed terms or interest rates apply.
365 Finance has supported thousands of UK SMEs, providing tailored funding solutions to meet diverse business needs.
365 Finance has secured a £150 million debt facility.
6Froda (Sweden), Amount raised: €150M
Froda is a fintech company that provides accessible financing solutions to small and medium-sized enterprises (SMEs) across Europe.
The company offers tailored loans with flexible terms, aiming to democratize access to financing and support business growth. Froda’s digital platform streamlines the loan application process, eliminating unnecessary barriers and focusing solely on business performance metrics.
The company has received €150 million in EU support, which will be used to improve loan terms for micro-companies.
7SolarisBank (Germany), Amount raised: €140M
Solaris is a leading embedded finance platform that enables businesses to integrate digital banking services into their products.
Solaris offers various financial solutions, including digital bank accounts, payment cards, loans, and identity services. With a German banking license and a team of over 700 employees from more than 70 nations, the company operates offices in several European cities. It serves partners across mobility, travel, and wealth management industries.
The company secured a €140 million financing round.
8Revving (UK), Amount raised: £107M
Revving is a fintech company dedicated to transforming payment processes within the advertising technology industry.
Their platform provides publishers, networks, agencies, and media buyers with immediate access to sales revenues, significantly reducing the typical payment delays extending up to 180 days. By integrating directly with various digital platforms, Revving offers a fast, automated, and flexible funding solution, enhancing cash flow management and enabling businesses to reinvest in growth opportunities.
Revving secured £107 million to address the cash flow challenges in the UK’s adtech sector.
9Wealthon (Poland), Amount raised: €126.2M
Wealthon is a Polish fintech company that provides integrated financial solutions to support the dynamic growth of small and medium-sized enterprises (SMEs).
Their offerings include various financing options such as Wealthon POSCASH, Wealthon LIMIT, Bridge Loan, and Installment Loan, designed to cater to diverse business needs. In addition to financing, Wealthon offers business tools like Wealthon WALLET for financial management and Wealthon POS, a sales assistant equipped with AI-driven profit optimization and detailed sales analytics.
Wealthon secured €126 million for the financial services ecosystem for SMEs.
10Tines (Ireland), Amount raised: €120.7M
Tines is a no-code workflow automation platform designed to help security and IT teams automate repetitive tasks, enhance operational efficiency, and focus on strategic initiatives.
Tines enables users to build, run, and monitor workflows across various applications without coding expertise. Their platform integrates seamlessly with existing tools, providing a secure and scalable solution for automating incident response, data enrichment, and system monitoring.
Tines has secured €120.7 million in Series C funding, raising the company’s valuation to €1 billion. The company plans to accelerate product innovation and enhance enterprise-level security.
