European venture investment reaches half-year record of €11.5 billion

European companies attracted €11.5 billion in venture capital during 2026’s first half, setting a half-year record, according to preliminary Invest Europe data. The industry body reported an 11% increase from a year earlier, despite a decline in the number of companies receiving funding.

Invest Europe attributed most of the venture increase to the UK and Ireland and to larger seed and later-stage funding rounds. Across private equity and venture capital, however, investment dropped 35% to €43.1 billion, with buyouts accounting for much of the decline.

Buyout investment decreased 42% to €24.5 billion, while growth investment fell 48% to €6.8 billion. Fundraising across private equity and venture capital rose 6% to €67.6 billion compared with the revised year-earlier figure.

Buyout funds collected €53.6 billion, an increase of 29%, accounting for about 79% of fundraising. Venture funds raised €7.9 billion, a decline of 3%. Divestments measured at cost dropped 40% to €13.2 billion, their lowest half-year level since 2020.

Defense companies received €2.7 billion, more than twice the €1.3 billion recorded a year earlier. Deeptech investment increased 35% to €8.5 billion, supported by gains in the UK and Ireland.

A survey conducted with consultancy Arthur D. Little found that three in four fund managers anticipated increased defense investment. Among investors backing funds, 43% expected to allocate more to Europe over the next three years because of Washington’s trade stance, while 30% expected to reduce US allocations.

Invest Europe said the half-year figures remain preliminary and expects them to increase as additional data arrives.