Eastern Europe attracted €3.6 billion in venture capital across 1,034 transactions in 2025, accounting for 5.5% of total European VC investment despite representing roughly one-third of the continent’s population. The figures come from the Venture in Eastern Europe 2025 Report, an annual study launched by How to Web that tracks venture capital activity across the region and translates funding data into insights on market maturity, capital concentration, and structural shifts.
A year of consolidation across the region
The report frames 2025 as a year of consolidation rather than expansion. Total investment volume remained broadly stable compared to the previous year, but the number of transactions declined. This mirrors a broader trend across Europe, where larger pools of capital are being deployed into a smaller number of companies. At the same time, average round sizes increased, particularly at early stages. Pre-seed rounds grew by 45% year over year, while seed rounds rose by 43%.
Despite the region’s strong technical talent and founder quality, the report identifies limited capital infrastructure and restricted access to growth-stage financing as the primary constraints on Eastern Europe’s startup potential. Early-stage investment is expanding, but many companies still struggle to secure the follow-on funding needed to scale.
Alexandru Agatinei, CEO of How to Web, said the past year reinforced the region’s ability to build globally competitive companies while highlighting the need for stronger scaling infrastructure. “2025 confirmed what we’ve been saying for years: Eastern Europe builds world-class companies. ElevenLabs, EnduroSat, and Spotawheel raised some of the region’s largest rounds in 2025,” he explained. Spotawheel from Greece secured a €300 million Series C round including debt, Tachyum from Slovakia raised €190 million in a Series C, and ElevenLabs from Poland closed a €169.7 million Series C.
“The gap is real, but so is the momentum: early-stage investment surged, and investors are paying closer attention than ever. 2026 is about turning that attention into the follow-on capital the region deserves, and we’re just getting started.”
Poland leads a concentrated investment landscape
Poland emerged as the strongest-performing ecosystem in 2025, attracting more than 20% of all venture capital invested across Eastern Europe. Considering the succes of Eleven Labs, Karol Lasota from Inovo VC shared: “Is it a bubble if half of the value comes form two companies? In my view, no. These companies are already profitable, growing very quickly, and are being valued closer to historical multiples. That is how the power law works: a few outliers account for most of the value.”
Turkey, Greece, Estonia, and the Czech Republic followed, although each recorded lower funding volumes compared to 2024. Investment activity remains highly concentrated: the top five countries generated over 60% of total investment activity, while the top ten accounted for nearly 90% of all capital attracted in the region.
Beyond Poland, several ecosystems recorded growth in invested capital, including Ukraine, Bulgaria, Hungary, and Slovakia. Ukraine led this group of high-growth markets with €163 million in investment volume, and both Ukraine and Slovakia also reported increased deal activity.
In contrast, Turkey recorded the most significant decline in investment volume in 2025, followed by Lithuania, Croatia, the Czech Republic, and Romania. In these markets, reduced funding levels were closely correlated with a drop in transactions and the absence of large outlier rounds capable of lifting overall totals.
Sector leaders and emerging verticals
Enterprise Software attracted the largest share of capital in 2025, drawing €720 million, followed by Fintech with €522 million and Space with €350 million. Automotive, Healthcare, and Security also captured substantial investment, highlighting the region’s growing sectoral diversity.
Investor confidence is also expanding into newer verticals. Healthcare, engineering and manufacturing equipment, gaming, energy, and defense each attracted at least €50 million in funding.
As in previous years, most capital flowed into later-stage companies. Early-stage funding, spanning pre-seed through Series A, accounted for 43% of total invested capital, while later-stage rounds from Series B to Series F represented 57%.
The Venture in Eastern Europe 2025 Report, presented by How to Web in partnership with Underline Ventures, positions these trends within the broader European investment landscape and aims to bring greater clarity and transparency to a region that continues to gain attention from global investors.
