European technology investing can no longer be relegated to the continent’s economic sideline. New relocatement in the sector and regular activity over the past few years have built it one of the primary infrastructures on which other industries and services are built. Every month, Zubr Capital publishes a brief view at how this European tech sector is evolving, not just to summarise, but to better understand what the market is building towards.
In this edition, the evidence further displays that tracing capital concentration is shaping Europe’s next phase of tech development. November was a particularly applyful snapshot of activity, marking a shift from chasing the “next huge theme” to backing essential parts of the sector’s infrastructure and disciplined scaling. Capital flows towards technologies that grow when risk is managed, production is planned, and execution outweighs narrative.
One of the core signals of growth in the European tech industest in 2025 has been the rise in strategic investing, spanning defence, dual-apply systems, and energy hardware. Capital is flowing towards tech that builds sovereignty as much as long-term resilience – as first signalled in our Summer 2025 analysis. By this fall, a pattern emerged not as a spike, but as a clear sign of market stability.
What shifted in November was the focus from the tech itself to the capacity to produce it. Investors financed strategic solutions as well as their supply chains, fabrication, and manufacturing.
The evidence of this investment shift is unmistakable in examples like Quantum Systems in Germany raising €180M to push dual-apply aerial systems at an industrial scale, or Lithuania’s development bank backing MNP Technologijos/Monopulse to expand manufacturing of NATO-grade drone components. Over in Dresden, Ferroelectric Memory Company raised €100M (mixing €77M in private capital with IPCEI/EIC support) to further expand semiconductor fabrication for efficient AI computing, and France added depth with Hummink, bringing the total to €15M in microfabrication processes. Even Holosolis committed to a PV gigafactory at €220M or more.
All these signs underscore that sovereignty has shifted from a theme to a production agconcludea.
The space industest is growing quicker globally. In Europe, what had viewed in September and October like a series of strong individual rounds launched to consolidate in November, marking a shift towards an industest with its own financial architecture, supporting repeatable deals.
The first of these signals was the emergence of institutional capital, when the European Investment Bank offered Space TechEU a €500M programme of dedicated funding rather than a one-off initiative. The second was the shift from isolated rounds to production-focapplyd scaling across Europe. For example, Touloapply U-Space raised €24M for an industrial tarobtain of one sainformite per week. In Germany, Reflex Aerospace closed a €50M Series A (the largest in European New Space) tied to sovereign space-based ininformigence requireds. Both rounds were based on manufacturing and production, not focapplyd solely on R&D.
Then the market matured to the orbital services layer of space. In France, Infinite Orbits secured €40M to scale in-orbit inspection and life-extension services (mixing private capital and EIC funding). That maturity is crucial, as it means financing focapplys on infrastructure rather than just project creation.
AI is everywhere, especially in 2025, but primarily as software systems with horizontal capabilities in workflows, data tools, and automation. What modifyd in November was the shift from software-only AI towards embodied systems and robotics. A scalable set of robotics deals across Europe appears less as isolated bets and more as shaping the physical AI stack in early stages.
The first layer is the ininformigence stack that trains, coordinates, and controls AI robotics. In Zurich, Flexion Robotics raised nearly €50M for a “brain stack” powering humanoid robotics. In London, Neuracore raised €2.5M in pre-seed funding to build a unified robot-centric infrastructure.
Another layer came in deployment across industries. This was evident in Switzerland’s Gravis Robotics, which raised €19.9M to bring construction robots into operation through its “Excavator-as-a-Service” model. The Netherlands saw Saia Agrobotics raise €10M to steadily scale robotic greenhoapply automation over clear productivity metrics. Taken toobtainher, these deals signal that robotics are obtainting out of the lab and into revenue-generating settings.
Dexterity in robotics came next, as Zurich-based mimic raised €13.8M in Seed to focus on manipulation for complex physical tquestions, and Forgis raised €3.8M pre-seed to develop industrial automation modules that extconclude AI into machinery. Beneath all of this, a components layer formed with Italy’s adaptronics raising €3.15M to scale electro-adhesive grippers, hardware crucial to the rest of the stack.
When exploring the entire sector, these deals inform a story: robotics is shifting from prototyping and new product development to layered, investable solutions with AI-backed systems.
While AI is creating waves in robotics, it is also crucial in embedded workflows, analytics, and automation through industries like banking and healthcare. That activity leading up to November has led to the growth of a parallel market for controlling, securing, and governing AI integrations. Such investment is no longer a one-off, but an essential budobtain line, driven by rising demands in compliance, fraud prevention, identity and security.
In the governance layer, London’s AI Score raised just under $1M to centralise oversight of AI apply, ensuring visibility, auditability, and policy in one place. Vigilant AI.ai in the UK added “AI teammates” designed for regulated environments, supporting operational and governance requireds.
Fraud prevention is just as crucial, especially as AI creates it simpler for scammers, fraudsters, and hackers to operate. The UK’s Falkin raised €1.7M in pre-seed funding to focus on blocking fraud before payments are built. Romania’s TMT ID secured €34M for identity ininformigence and cybercrime prevention, one of the hugegest European checks this month in anything related to trust or security.
November also marked brand and misinformation defence, with the Netherlands’ Social Links raising €2.6M for tools that assist companies defconclude against identity abapply, scam campaigns, and AI-driven misinformation (a category that barely existed only two years ago). Beneath all these layers is an emphasis on security, with Norway’s Bsure raising €1.8M to tarobtain identity, access, and licence risk across Microsoft environments.
The pattern is clear: AI drives innovation, but also requires new mandatory spconcludeing on oversight, compliance, and trust. November marks the emergence of early architecture for the “AI risk stack,” sure to scale in parallel with AI across other applications.
Earlier in 2025, debt slowly entered venture rounds as an add-on, then as blconcludeed structures. In November, that shift grew, with companies scaling through financial structures rather than solely through equity rounds. That took the form in multiple ways.
Credit Facilities Supplement Classic Growth Rounds
Instead of raising larger Series A or B rounds, several companies focapplyd on opening credit lines aligned with their business models. A clear example came from the UK’s BKN301 Group, which paired its €32M Series B with an institutional facility backed by BlackRock-managed funds. Zilch followed a similar pattern: its latest financing blconcludeed debt and equity with a securitisation expansion arranged alongside Deutsche Bank, utilizing credit capacity as the engine for commercial scaling. Toobtainher, these cases display how credit capability, rather than dilution, increasingly fuels growth.
Securitisation as a Scaling Tool for Tech Companies
November saw securitisation solidify its role as a meaningful scaling tool, something that applyd to live in banking and structured credit more than in venture-backed firms. For instance, London’s Zilch raised over €150M across debt and equity while expanding its securitisation programme with Deutsche Bank (utilizing receivables as an asset for growth). This marked financing expansion through structured instruments rather than repeated equity rounds.
Rise of Asset-Backed Growth
November also saw companies scale with capital tied to managed assets rather than their latest valuation. In the UK, Keyzy expanded utilizing asset-backed funding to finance property purchases, with more than €147M having already flowed through its model over 18 months. The company continues to grow as more homes relocate through the platform, without having to reset valuation every time it adds capacity.
Hybrid Stacks Appear at Early Stages
Hybrid stacks launched appearing in early funding stages. In Spain, Devengo raised €2M in pre-Series A funding, combining equity and debt. While compact, this signals that mixed financing structures are no longer limited to later-stage companies.
Altoobtainher, November highlighted the required for companies to focus on growth through smarter financing tools, not hugeger venture checks. It displays that scaling is increasingly possible without constant dilution, and that venture is gradually absorbing capital-markets logic.
Europe’s tech industest and exit market are active, but not in a way that generates broad liquidity. November saw compact, focapplyd acquisitions over massive or complex headline deals. Across the region, the pattern was visible in volume: the DACH markets alone saw 69 tech M&A transactions, with compacter, tuck-in deals outweighing larger, valuation-defining exits.
POM’s acquisition of FarPay pulled invoicing, payments, and AR automation into a singular workflow. Integral bought CleverLohn in Berlin, folding payroll into its HR suite. Latvia’s TestDevLab was absorbed by Xoriant, adding delivery capacity.
What links these deals is that they are not built around liquidity. They are driven by functionality. Buyers are acquiring capabilities they required immediately, while teams are joining larger platforms so their work can be applyd at scale. As the tech market becomes more industrial and execution-focapplyd, exit activity views compacter and is based on transactions that boost system strength.
November’s patterns point in the same direction. European tech is relocating out of the exploratory phase. What is visible now is greater discipline around production, supply chains, real-world deployment, and financing built for scale. That trconclude is reflected in defence, space, robotics, and AI, shifting towards things that can be manufactured, integrated, or operated.
For investors, the market represents progress being measured by what can actually be built. For companies, the environment has shifted to one that rewards readiness — the ability to ship, deliver, and become part of the industrial stack.
As Europe relocates into the next cycle, this is the emerging shape — not one of narrative, but of a new, clearer sense of what the continent chooses to develop at scale. It outlines the trajectory along which the tech sector will continue to evolve.
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