Axeleo Capital (AXC) publishes its European Urban Tech Fundraising Review — a quarterly analysis of European funding trends focusing on B2B SaaS startups operating in the energy, construction (Contech), and real estate (Proptech) sectors.

Quantitative Insights

In the second quarter of 2025, the European Urbantech ecosystem — spanning Energy, Construction, and Real Estate with a focus on B2B SaaS — raised €176.3 million across 49 deals.
Energy-related innovation continues to drive momentum, and early-stage rounds remain the dominant trend.
While the number of deals rose compared to Q1 (49 vs. 43), total funding declined from €222.5M to €176.3M, reflecting smaller round sizes and a more cautious investment climate.

Highlights from Q2 2025

1. Energy & Environment leads Urbantech activity

Energy-related startups dominated this quarter’s Urbantech funding, capturing 53.3% of the total capital raised — significantly ahead of Real Estate (31.2%) and Construction (15.6%).
The most active segments within this vertical were energy optimization and grid technologies, which accounted for 18% of all deals, followed by energy management solutions (14%) and renewables and greentech innovations (12%). Notably, the largest funding round of the quarter — €24 million raised by Trawa — underscores the growing investor interest in solutions that enhance energy efficiency and grid performance.

2. Early-stage deals dominate, but maturity signals are rising

Early-stage rounds (pre-seed and seed) accounted for 76% of all deals in Q2, up from 62% in Q1 — confirming the ecosystem’s strong orientation toward company creation and early traction.
That said, 31 exits were recorded and 6 Series B+ rounds closed this quarter, both pointing to a maturing ecosystem and growing M&A interest.

3. Western Europe remains the key hub

The UK led the quarter in deal volume with 12 transactions, followed by Germany (9 deals), Spain (5) and the Netherlands (5). France recorded 4 deals, with a total of €11 million raised, confirming its continued relevance in the European Urbantech landscape. Overall, Western Europe remains the core region for investment activity across Energy, Real Estate, and Construction tech.

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Methodology: 

The Proptech & Contech Index is based on data from Axeleo Capital as well as public databases, such as Crunchbase. These data sources mainly gather information on deals and rounds that have been publicly disclosed - many other raises are taking place, but without announcements or communications on amounts (so difficult to track). The analysis is limited to European-headquartered B2B SaaS companies whose value proposition focuses on the digitization of the Built Environment, specifically within the Real Estate (Proptech), Construction (Contech), and Energy sectors. The recorded fundraising refers to equity venture capital fundraising  (i.e. excluding debt fundraising, subsidies etc.) when possible.