In the first half of 2025, software companies in Europe raised €3.6 billion across 335 deals, representing around 11 per cent of total European tech funding (€33.7 billion) and around 17 per cent of all tech deals (1,940+). While software captured a smaller share of capital, it remains a vital driver of deal activity, accounting for a higher proportion of transactions than funding volume.
The average deal size in software was about €10.7 million, compared to €17.4 million across European tech overall. This highlights a more fragmented funding landscape in software, with a larger number of smaller- to mid-sized rounds fueling innovation.
The period featured several outsized software rounds across Europe, highlighting the sector’s diversity, from productivity AI and workforce platforms to enterprise SaaS, risk decisioning, cryptography/FHE, FinOps, and healthtech. These raises indicate continued investor interest in AI-enabled, mission-critical tools that address both broad and industry-specific needs.
Overall, the data suggests that while mega-rounds in other sectors drove headline numbers, software continues to demonstrate resilience and breadth, with strong deal activity and a steady flow of capital into companies scaling AI, automation, and digital infrastructure.
Here are the biggest software deals in H1 2025.
Grammarly (Ukraine)
Amount raised in H1 2025: $1B
Grammarly is an AI writing assistant used by over 40 million people and 50,000 organisations to improve clarity and effectiveness in English. Founded in Ukraine in 2009, it provides real-time support across 500,000+ apps and sites, from email and word processors to web browsers.
Its product lineup, Grammarly Free, Pro, Business, and Education, serves users ranging from students to Fortune 500 companies. Features such as grammar and spelling checks, tone and style guidance, and plagiarism detection are designed to enhance writing while maintaining each user’s voice and context.
In May 2025, the company secured $1 billion in non-dilutive financing from General Catalyst to further its transformation into a comprehensive AI productivity platform.
Your.World (Netherlands)
Amount raised in H1 2025: €800M
Your.World is a European platform providing online services that help more than one million customers establish and grow their digital presence.
Since entering the market in 2016, the company has expanded through a mix of organic growth and acquisitions, offering recurring services across online productivity (workspaces), domains and hosting (web presence), digital trust (security), and digital transformation.
The company has secured €800 million in long-term capital to expand in the European SME market, with planned investments and acquisitions in managed IT services, cloud infrastructure, and online productivity solutions.
Ascendx Cloud (UK)
Amount raised in H1 2025: $110M
Ascendx is a salesforce-focused solutions company that helps enterprises “10x the value of their CRM.”
Its connected portfolio of salesforce-native apps powers sales, service, operations, and data, delivering real-time insight and faster workflows. Offerings span sales enablement, service automation, workflow orchestration, secure data management and backup, data integration to warehouses like Snowflake, and point-of-sale experiences, enterprise-grade, compliant, and built to scale.
Ascendx Cloud raised $110 million to accelerate US expansion and fund acquisitions to strengthen its AI-driven CRM suite.
Incident.io (UK)
Amount raised in H1 2025: $62M
Incident.io is an all-in-one AI platform for on-call, incident response, and status pages.
It gives fast-moving teams a unified command centre from alert to resolution to cut downtime and keep customers informed. The AI platform, including AI SRE, analyses alerts, triages issues, summarises context, and accelerates root-cause diagnosis so engineers resolve incidents faster with less effort. With workflows, a service catalogue, insights, and integrations, it’s trusted by teams at Netflix, Airbnb, Etsy and more.
In April, Incident.io raised $62 million at a $400 million valuation and will use the funds for hiring, sales and marketing, and product development.
Shop Circle (UK)
Amount raised in H1 2025: $60M
Shop Circle is an AI-driven technology group powering the infrastructure of modern enterprises.
It focuses on digital commerce with a portfolio of Shopify-native business apps and developer tools that help brands drive sales, streamline operations, and scale. Examples include Product Options, Digital Downloads, Easy Redirects, Back-in-Stock alerts, Referrals, and AI Order Tags & Flows. Customers get setup assistance, customisation, and 24/7 support.
Shop Circle has raised $60 million (half equity, half debt) to expand into new sectors and accelerate development of its AI capabilities for B2B customers. Recently, Shop Circle extended Series B to $100 million.
Zama (France)
Amount raised in H1 2025: $57M
Zama is a privacy-focused cryptography company whose solution is Fully Homomorphic Encryption (FHE), which enables data to be processed while still encrypted, so cloud services and applications can perform operations without ever exposing sensitive information.
The technology supports true end-to-end confidentiality, quantum-resistance, and verifiable computations, making it suitable for privacy-sensitive use cases in finance, healthcare, blockchain, and other regulated environments.
In June, Zama raised $57 million to launch its mainnet, broaden adoption within its developer ecosystem, and support further research and development of its Fully Homomorphic Encryption (FHE) technology.
Taktile (Germany)
Amount raised in H1 2025: $54M
Taktile is an AI-powered decisioning platform aimed at financial institutions, enabling teams in banking, fintech, and insurance to automate and optimise risk decisions, from onboarding and credit evaluation to fraud, compliance, and collections.
Its offerings (Decision Workbench, Data Marketplace, Optimisation Studio, plus tools like AI Copilot) allow organisations to design, test, monitor, and deploy decision workflows with greater speed, safety, and transparency.
The company raised $54 million in February to enhance risk management for fintechs and financial institutions while expanding its reach into the insurance sector.
Tandem Health (Sweden)
Amount raised in H1 2025: $50M
Tandem Health is a company which builds an AI medical scribe and clinician co-pilot that captures consultations and drafts structured notes so clinicians can focus on patients.
It supports multiple specialities and languages, works for in-person and virtual visits, and is used daily by 1,000+ care organisations across Sweden, the UK, France, Spain, and Germany.
In June, the company closed $50 million to build an AI-native operating system for clinical workflows across Europe.
Vertice (UK)
Amount raised in H1 2025: $50M
Vertice is a spend-optimisation platform focused on SaaS and cloud costs. It helps procurement, finance, IT/security, cloud engineering, and legal teams improve visibility, negotiate better vendor contracts, manage renewals, and automate procurement workflows.
Vertice offers contract benchmarking and analytics, cloud cost optimisation tools, and intelligent approval processes. It integrates with ERPs and finance tools to help organisations control spending, improve efficiency, and deliver faster ROI.
In January, Vertice raised $50 million in new funding to expand its vision.
Granola (UK)
Amount raised in H1 2025: $43M
Granola is an AI-powered notepad app for meetings that listens to your calls, transcribes them in the background, and enhances your own notes with summaries, action items, and contextual insights, all without joining as a bot.
It lets you use your own writing first, then fills in key details afterwards, supports customizable templates, and syncs with tools like Zapier, Slack, and Notion.
Granola raised $43 million in a Series B round in May to expand its London-based team and accelerate product development.
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