Urbantech Index Q3 2025 – Key Insights

Axeleo Capital (AXC) publishes the latest edition of its “Urbantech Index”, a quarterly review of the European Urbantech ecosystem that monitors the pace of investments and innovation in Urbantech SaaS in Europe. This analysis focuses on B2B SaaS startups across the Energy, Construction (Contech), and Real Estate (Proptech) verticals.

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Quantitative Insights

European Urbantech SaaS secured €179 million across 42 deals in Q3 2025. While the total amount invested is similar to Q2 (€179M vs. €176M), the number of transactions dipped (42 vs. 49). Early-stage activity continued to dominate, with 62% of deals at Pre-seed and Seed, underlining the sector’s strong innovation potential despite a more selective investment climate.

Zooming out, Q3 2025 confirms the resilience of the European Urbantech ecosystem, with steady deal activity compared to the previous quarter and clear progress versus earlier periods of weaker fundraising.

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Geographical breakdown: Germany leading, the UK and Italy following

Germany was the most active market this quarter with 11 deals, ahead of the UK (8 deals) and Italy (7 deals). Sweden recorded 4 transactions, and Spain 3.

France had a much quieter quarter with only a single disclosed deal — Elum Energy (€3.5M Seed).

Energy and Construction Lead Sector Activity

Top funded Urbantech categories in Q3 2025 were:

• Construction operations (17%)
  
  
• Energy optimization & grid (17%)
  
  
• Property & Asset management (12%)
  
  
• Tenant & Leasing tech (12%)
  
  
• Compliance & ESG (12%)
  
  
• Energy management (10%)
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Together, Energy-related solutions captured nearly half of total funding (48%), confirming investor appetite for efficiency, resilience, and infrastructure digitization.

Early-Stage Momentum Continues

Early-stage rounds (Pre-seed and Seed) made up 62% of total deals, with 19 Seed and 7 Pre-seed rounds completed this quarter.

Top Deals of the Quarter

• Buena (DE) – €49M Series A : Proptech platform reinventing apartment rental and management through digital-first workflows.

• Dexter Energy Services (NL) – €23M Series C : AI-based energy forecasting and short-term trade optimization, reducing balancing costs by up to 35%.

• Sympower (NL) – €19M Series B : Virtual power plant monetizing industrial energy flexibility, batteries, and renewables across European markets.

• FERNRIDE (DE) – €18M Series A  : Autonomous logistics platform enabling “flexible ground autonomy” in critical industrial operations.

• Suena (DE) – €8M Series A : AI-powered energy trading optimization for renewable storage and grid balancing.

Diversity Remains a Challenge

Only 6 deals this quarter involved at least one female founder, a modest step forward but still reflecting the structural lack of diversity in founding teams across Urbantech, especially at later stages

Exit Activity

Q3 recorded 14 exits, confirming the M&A momentum observed in Q2 and underlining the European ecosystem’s growing maturity.

Notable transactions included:

• IBIS (NL), a leading cost estimation software for construction, acquired by Aceve (SE) to strengthen its European SaaS platform.
  
  
• Alteia (FR), AI-driven visual intelligence for utilities, acquired by GE Vernova (US) to bolster its GridOS® portfolio.
  
  
• Resman Energy (NO), reservoir monitoring leader, acquired by SLB (US) to expand its production optimization solutions.

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Methodology: 

The Urbantech Index is based on data from Axeleo Capital's analysis as well as 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 (thus difficult to track). The analysis is limited  to SaaS companies headquartered in Europe, and with a value proposition focused on Construction, Real Estate and Energy. As far as recorded fundraising is concerned, this refers to equity venture capital  fundraising only (i.e. excluding debt fundraising, subsidies and aid other than equity). 

About Axeleo Capital: 

Axeleo Capital is a venture capital firm active on the  European technology scene and backed by a large pool of entrepreneur-investors. The fund  offers startup founders a unique support framework that combines equity investment,  operational and strategic coaching and an active ecosystem of over 100 high-level partners  and mentors. Its investments include Garantme, Check&Visit, Beanstock, Mob Energy, Pionix or Offroad.

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