European VC investment hit a record €11.5bn in the first half of 2026

Venture capital investment in European companies hit a half-year record of €11.5bn in the first half of 2026, according to preliminary data from Invest Europe. That is 11% more than a year earlier. The industry body published the figures on Thursday with a survey of fund managers and their investors, run with consultancy Arthur D. Little.

Private equity and venture capital funds raised €67.6bn in Europe in the half. That is up 6% on the revised figure for the same period of 2025. Total investment fell 35% to €43.1bn, pulled down by buyouts.

Eric de Montgolfier, Invest Europe’s chief executive, said Europe’s stability is drawing capital to its private markets.

“In the hands of experienced managers, that capital is flowing into companies that support Europe’s strategic agenda, fuel innovation, and boost competitiveness.” Eric de Montgolfier, CEO, Invest Europe

Venture up, buyouts down

The venture record came even though fewer companies received money. Invest Europe said the rise came mainly from the UK and Ireland, and from bigger seed and later-stage rounds.

Buyout investment fell 42% to €24.5bn, and growth investment dropped 48% to €6.8bn. Fundraising moved the other way for buyouts, which raised €53.6bn, up 29% and about 79% of all money raised. Venture capital funds raised €7.9bn, down 3%.

Investors also sold less. Divestments at cost fell 40% to €13.2bn, the lowest half-year total since 2020. Stock market listings made up 13% of exits, up from 7% a year earlier. It is their first double-digit share since the second half of 2021.

Defence and deeptech

Investment in defence companies reached €2.7bn, more than double the €1.3bn of the first half of 2025. Deeptech companies received €8.5bn, up 35%, helped by a rise in the UK and Ireland.

The survey points the same way. Three in four fund managers expect more investment in defence, their top target sector. Another 53% expect more in aerospace. Deeptech and AI came second, with 62%.

Continuation funds, which let a firm move companies it already owns into a new vehicle, cooled. They raised €2.4bn, down 78% from a record €11.3bn a year earlier.

A shift away from the US

The survey also asked the investors who back these funds where their money is going. Because of Washington’s trade stance, 43% expect to put more into Europe over the next three years. Some 30% expect to put less into the US. And 29% expect more for Europe because of the conflict in the Gulf.

AI is the other big theme. Most fund managers, 82%, said AI will be their teams’ biggest focus next year, ahead of exits. Its impact is now the top issue in due diligence. Some 69% said the industry is already consolidating.

“AI capabilities have moved from ‘nice to have’ to ‘must have’ and are transforming GP operations and the companies they support.” Jonas Fagerlund, partner, Arthur D. Little

All the H1 figures are preliminary, and Invest Europe expects the final numbers to rise as more data comes in. Crunchbase data showed in October that Europe’s startups had their best quarter in four years. This week the EU launched a €525M chip platform, and members of the EIC Scaling Club have raised €4bn.