European Urban Tech Index Q1 2025 - Key Insights

Axeleo Capital (AXC) publishes its updated 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.

In the first quarter of 2025, the Urbantech ecosystem — covering Energy, Proptech, and Contech (and with a focus on B2B SaaS only) — recorded €222.5 million in funding across 43 deals in Europe. The quarter reflects strong momentum in energy-related innovation and a continued dominance of early-stage activity.

‍

Highlights from Q1 2025

1. Energy & Environment leads Urbantech activity

Over 56.8% of the deals this quarter were in the Energy & Environment space, far ahead of Real Estate (34.1%) and Construction (9.1%). Categories such as Compliance & ESG (20%), Energy optimization & grid (16%), and Real Estate data & visualization (13%) led the way. The largest round of the quarter — €70M (Mews) — also came from this vertical.

2. Early-stage deals dominate, but exit signals emerge

The ecosystem remains heavily tilted toward pre-seed and seed stages, which together account for 62% of rounds. Series A and B+ activity was limited (only 11 rounds combined), highlighting a still-young market. That said, the 28 exits recorded this quarter point to rising maturity and growing M&A appetite across segments (​​as pointed out in AXC's recent Urban Tech Exit Analysis).

3. Western Europe remains the key hub

The majority of deals were concentrated in Western Europe, with Germany (9 deals), the UK (5), France (4), and Spain (4) leading the charge. €17M was raised in France this quarter, reflecting steady activity and confirming its place among the key Urbantech markets in Europe. - not including XXII’s round with Sopra Steria Ventures, for which funding figures were not disclosed.

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.