Funding Rounds Have Never Been Bigger in Europe Thanks to US Cash

Jan Oberhauser’s funding round for his Berlin-based software startup n8n led to a bidding war last summer. The founder and his team received 14 offers, or term sheets. Most were from American investors.

“US investors are definitely much more decisive,” said Oberhauser. “The valuation tends to be higher, and the terms are generally friendlier to founders.”

European funding rounds have never been bigger. Months-old startups without a product are surpassing $1 billion valuations, once a symbolic milestone attained after years of grind and multiple funding rounds. The median funding round for a European startup grew 32% between 2024 and 2025, the biggest leap since 2020, when the Covid-19 pandemic skewed fundraising and valuations, according to data from PitchBook.