Executive Summary
Eastern Europe’s H1 venture capital landscape is dominated by follow-on rounds, with less early-stage activity, even if the first half of 2025 did not match the scale of winner rounds seen a year earlier. Instead, this period reflects a more measured phase, where momentum is carried by a wider mix of solid performers rather than a few outsized deals. The region is gradually moving from potential to consistent delivery, showing maturity across countries and sectors.
In total, 265 funding rounds were recorded across Central and Eastern Europe (CEE), of which 226 were fully disclosed. The combined value of these disclosed rounds reached €1.34 billion. This figure does not include Turkey, which is analyzed separately in this report due to incomplete transaction data. In terms of activity, 21 CEE countries recorded deals in H1, with the most active ecosystems being Poland (74 deals), Estonia (38), the Czech Republic (17), and Ukraine (17).
By looking at the 20 most prominent deals, we see the clearest signals of where the ecosystem stands today: capital is still concentrated, but it increasingly flows into companies with deeper technical foundations, AI, biotech, gaming, and spacetech, alongside steady contributions from sectors like gaming and fintech.
Key Highlights
- Sector leadership: AI dominates with 43.2% of total funding
- Geography: 21 countries recorded activity, underscoring the region’s breadth.
- Confirmations: H1 brought many follow-on rounds and strong signals from companies already scaling successfully.
- Early-stage slowdown: Fewer new seed deals came through, as capital concentrated further up the pipeline.
- Diaspora strength: Founders with international experience and networks continue to act as a growth engine for the region.
- Worth noting: Mews, a hospitality start-up from the Czech Republic, closed €64.1M in growth funding, the biggest CEE-based round of the year so far.
- Overall activity: 265 funding rounds, totaling €1.34B in disclosed funding, not including Turkey (*while not included in CEE totals due to incomplete data, Turkey saw several notable deals mentioned in this report)
- Gaming continues to shine, particularly in Turkey with Good Job Games and Grand Games totaling over €48M.
Three mega-rounds anchor this performance: ElevenLabs (Poland, €153.9M), Cast.AI (Lithuania, €95.5M), and Sipay (Turkey, €66.7M). These deals alone represent over 20% of total disclosed funding, showcasing the region’s ability to produce globally competitive unicorn-track companies.
This H1 edition of the Venture in Eastern Europe Report 2025 is designed as an early checkpoint. It highlights the 20 largest disclosed deals in the first half of the year, breaks them down by country and industry, and captures the founders and VCs driving momentum. The trends we see today will shape the second half of the year—and the full-year report to be released in Q1 2026.
The narrative is clear: capital is flowing but still concentrated. Mega-deals make headlines, yet smaller rounds remain harder to secure. In H1, just a handful of mega-rounds accounted for 20%+ of total disclosed capital. Meanwhile, fewer companies are getting funded: Europe saw ~29% fewer startups receive investment in 2024, even as medians nudged up—a classic flight to quality that tightens seed access.
Put differently, funding is there, but competition is steeper, as the number of active/participating investors has thinned amid difficult VC fundraising conditions. Over 60% of European GPs reported a gloomy fundraising sentiment at the end of 2024. Regionally, CEE deal values also cooled quarter-on-quarter, from €700M in Q1 to €640M in Q2, underscoring a market where early rounds are slower and more selective.
Top 20 Deals in Eastern Europe (H1 2025)
These are the 20 largest disclosed deals of H1 2025, setting the tone for the region:
Reading Between the Numbers
These 20 deals showcase the current state of Eastern European venture capital: a handful of large, internationally-backed rounds shape the numbers, while early-stage founders still struggle to access consistent funding.Several patterns stand out:
Deal Leaders Shape Regional Narrative
ElevenLabs leads the pack with €153.9M in Series C funding, positioning the company at the forefront of Europe’s AI innovation landscape. The voice technology company’s round alone represents over 10% of the region’s total disclosed funding, demonstrating how individual success stories can elevate entire ecosystems.
Cast.AI from Lithuania follows with €95.5M, reinforcing the Baltic states’ strength in enterprise AI and DevOps solutions.
Turkish fintech Sipay raised €66.7M in Series B funding, a signal of how mature the Turkish digital market has become and of the country’s continued strength in fintech.
Mews, a hospitality technology company from the Czech Republic, closed €64.1M in growth funding, the biggest and most authentic CEE-based round of the year so far. Together, these deals show that Eastern Europe is excelling well beyond traditional software categories.
SpaceTech companies made their mark with EnduroSat from Bulgaria, raising €43.0M for space technology, and Aerones from Latvia, securing €54.1M for robotics and renewable energy applications. These frontier sector investments signal investor appetite for capital-intensive innovation when backed by strong technical teams and clear market opportunities.
Industry Investment Priorities
Artificial intelligence investments span multiple application areas, from ElevenLabs’ consumer voice technology to Pactum’s B2B negotiation automation. Enterprise AI companies like DRUID AI (€31M) and sintra.ai (€14.9M) attract substantial rounds, while specialized applications in eSports gambling (Oddin with €12M) find their niches.
Gaming remains a Turkish strength, with Good Job Games (€19.7M) and Grand Games (€25.6M) both securing significant rounds. Istanbul-based studios demonstrate a consistent ability to create globally successful mobile games, attracting both strategic and financial investors. This track record gives Turkish gaming companies credibility that translates into funding access.
Cybersecurity companies from Estonia and the Czech Republic raised substantial rounds, with Blackwall (€45.0M) and ThreatMark (€22.1M) leading the category. These companies benefit from their countries’ digital infrastructure expertise and government support for cybersecurity innovation. Their success attracts follow-on investment and talent to create cluster effects.
Investment Patterns and Trends
The funding landscape in Eastern Europe reconfirms long-observed dynamics in investor behavior and capital allocation. International firms continue to treat Eastern European startups as peers to their Western counterparts, and government programs remain a crucial backbone for capital-intensive deeptech ventures.
International Capital Flows
International capital flows have fundamentally changed Eastern European venture dynamics. Major US firms like Lux Capital and Founders Fund now participate regularly in regional rounds, bringing Silicon Valley expertise and global networks. European firms like Index Ventures and Earlybird provide strategic guidance for scaling across EU markets. This international presence validates the region’s startups and provides credible paths to larger future rounds.
Notable international investors active in H1 2025 include:
– Lux Capital (Atrandi Biosciences, €21.3M Series A)
– Founders Fund (EnduroSat, €43M, Series B)
– Earlybird Venture Capital (sintra.ai, €14.9, Seed)
– G2 Venture Partners & SoftBank Vision Fund 2 (Cast.AI, €95.5M, Series C)
– Activate Capital & S2G (Aerones, €54.1M, Series B)
– Insight Partners (Pactum, €46.2M, Series C)
– 3VC (Pactum, €46.2M, Series C)
– Dawn Capital (Blackwall, €45.0M, Series B)
– Octopus Ventures (ThreatMark, €22.1M, Series B)
Challenges and Risk Factors
Despite the positive momentum, Eastern European venture capital faces structural challenges that could constrain future growth. Four primary risk factors shape the investment landscape: geopolitical instability affects both capital flows and operational capacity, talent scarcity drives up costs and limits scaling potential, market access barriers prevent companies from reaching their full revenue potential, and currency fluctuations create unpredictable financial conditions for both startups and investors.
– Geopolitical Considerations: The ongoing conflict in Ukraine has created both challenges and opportunities. While Ukrainian startups face obvious difficulties, the ecosystem has shown remarkable resilience, with companies successfully raising significant rounds.
– Talent Competition: As the ecosystem grows, competition for top technical talent is intensifying, particularly in AI and engineering roles. Companies are increasingly offering competitive packages and remote work options to attract and retain talent.
– Market Access: While Eastern European companies excel at building products, scaling to global markets remains a challenge.
Looking Ahead: H2 2025 and Beyond
AI companies seeking Series A and B funding outnumber available investor capacity, creating competitive dynamics that benefit the strongest startups. Healthcare technology momentum should accelerate based on early results and investor interest in digital health solutions. Deep technology companies in climate and space applications will likely attract increased government and corporate attention.
Eastern Europe has established itself as a legitimate venture capital destination rather than an emerging market experiment. The region’s combination of technical talent, cost advantages, and improving infrastructure creates sustainable competitive advantages for certain types of companies. Investors now view Eastern European startups as potential global leaders rather than regional players, fundamentally changing capital availability and company ambitions.
The concentration of capital around mega-deals will likely continue, creating a bifurcated market where exceptional companies access abundant funding while average performers struggle. This dynamic rewards execution excellence and punishes mediocrity, ultimately strengthening the overall ecosystem by raising standards and attracting better talent.
Success stories like ElevenLabs and Cast.AI create demonstration effects that attract more international attention and capital to the region. These companies also produce experienced operators who often become angel investors or start new companies, creating positive feedback loops that sustain ecosystem growth. The region’s venture capital story in 2025 shows sustainable progress rather than temporary momentum.
Our Mission: Connecting the Eastern European Ecosystem
Our work extends beyond data collection and analysis. We actively foster connections between founders, investors, and ecosystem builders across the region. Through our platform, we facilitate introductions between startups seeking funding and investors looking for opportunities, organize networking events that bring together key stakeholders, and provide market intelligence that helps founders make informed strategic decisions.
“The Eastern European tech ecosystem has reached an inflection point where world-class companies emerge regularly, not occasionally. Our role is to ensure these success stories inspire and enable the next generation of founders.”, says Alexandru Agatinei, CEO at How to Web.
We believe transparency drives ecosystem growth. By publishing detailed funding data, investor profiles, and market trends, we help level the playing field for entrepreneurs who previously lacked access to crucial market intelligence. Our research informs policy discussions, guides investor allocation decisions, and validates the region’s potential to global stakeholders.
“Data transparency creates opportunities. When founders understand funding patterns and investor preferences, they can better position their companies for success.”, adds Adrian Rosoaga, Investment BCR Seed Starter.
The Eastern European venture story continues to evolve rapidly. Our commitment involves documenting this transformation while actively participating in its acceleration through connections, insights, and advocacy for the region’s exceptional entrepreneurial talent.
“We’re not just observers of the Eastern European venture renaissance—we’re active participants helping write the next chapter of this remarkable growth story,” says Nicoleta Pirvu, Investment Data & Investor Relations Manager at How to Web.
The Diaspora Advantage: A Full Report Deep Dive
One of the most significant developments in 2025 has been the emergence of diaspora founders as a major force in Eastern European venture capital. In our annual report, we will showcase the remarkable success of Eastern European founders who have built companies outside their home countries before returning to establish operations in the region, as well as those who have leveraged their diaspora networks to secure significant funding rounds.
The diaspora phenomenon represents an important chapter in Eastern European innovation, where experienced founders with Silicon Valley, London, or other major tech hub experience are bringing their expertise, networks, and capital back to create world-class companies.
Closing Remarks
The Eastern European venture capital landscape continues to evolve, though H1 2025 brought fewer landmark rounds than the previous year. This report captures a steady shift from promise to performance, showing how the region is building on its potential with a more diverse set of proven results.
Follow us for regular updates on Eastern European venture capital developments and early insights from the data. Connect with our team to discuss specific market dynamics, company spotlights, or investor perspectives that shape this remarkable growth story.
We’ll continue tracking these developments as they unfold throughout 2025.
Venture in Eastern Europe 2025 Report: H1 Updates is built by How to Web, in partnership with BCR Seed Starter.
📢 The full annual report, released in February 2026, will provide a comprehensive analysis of deal trends, investor patterns, and ecosystem evolution across the entire year. Stay tuned for a sharpened state of Eastern European VC.
You may also like
The Road to Spotlight: 20 Startups That Made It into the Semifinals
Executive Summary Eastern Europe’s H1 venture capital landscape is dominated by follow-on rounds, with less early-stage activity, even if the first half of 2025 did not match the scale of winner rounds seen a year earlier. Instead, this period reflects a more measured phase, where momentum is carried by a wider mix of solid performers… Read more »
From Coder to CTO: Izabel Jelenić on Building Croatia's First Unicorn and Leading 800 Engineers
Executive Summary Eastern Europe’s H1 venture capital landscape is dominated by follow-on rounds, with less early-stage activity, even if the first half of 2025 did not match the scale of winner rounds seen a year earlier. Instead, this period reflects a more measured phase, where momentum is carried by a wider mix of solid performers… Read more »