AI and defense drive global investment in startups
Global VC investments rose from €96.5 billion to €103 billion.
Published on October 20, 2025
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Global investment in startups continues to grow. In the third quarter of 2025, the total amount rose to €103 billion, the fourth quarter in a row. This is according to the latest Venture Pulse report from KPMG. The growth is mainly due to the continued rise of artificial intelligence (AI) and defense technology.
Globally: AI and defense technology are leading the way
Global VC investments rose from €96.5 billion to €103 billion. The IPO market is also picking up, giving investors new confidence. Globally, most of the money is going to companies that develop AI models, platforms, or defense technology.
In addition, interest in hardware startups is growing again. The rapid development of AI is increasing demand for chips, data centers, and energy solutions. Geopolitical tensions are also making countries less dependent on foreign suppliers, which is stimulating investment in local production.
Europe: mega deals and strategic autonomy
In Europe, investments remained stable at €14.9 billion. Growth was mainly driven by mega deals in the AI sector, such as Mistral AI (France) and Nscale (United Kingdom), both worth €1.28 billion. European governments are increasingly investing in critical technologies such as semiconductors in order to become less dependent on other regions. Despite the fact that deals are taking longer to materialize, sentiment remains positive.
The Netherlands: fewer deals, but a strong focus on AI
In the Netherlands, 79 deals were closed in Q3 – the lowest number since 2020 and 22% less than in the previous quarter. This is according to the Dutch Startup Report, compiled by KPMG, Techleap, and the Dutch Startup Association, among others. The smallest investments (under €1 million) declined in particular.
Nevertheless, the share of larger deals grew: Series B+ rounds (from €15 million) accounted for almost 70% of the total capital. Q3 also saw one mega deal: Amsterdam-based Framer raised $100 million and became the latest Dutch unicorn.
Almost a third of all investments went to AI startups. Public funds, such as Invest-NL, played a prominent role and were involved in more than half of the largest deals – including Vicentra, The Protein Brewery, Revyve, LeydenJar, and QuiX Quantum.