According to the Tech.eu database, European tech companies raised €6.6 billion throughout January 2025. In comparison to the same period in previous years, January 2025 experienced a notable decline of about 60 per cent compared to 2024, but an increase of roughly 40 per cent compared to 2023. Harry Haeck, Partner at Smartfin, commented on the January numbers within the European tech investment landscape in our January Tech.eu Pulse, a compact version of the monthly report:The new year began with a major shift in AI as China’s DeepSeek released its open-source R1 model, challenging well-funded AI giants. This marks a fundamental shift in AI economics, allowing European startups to develop competitive AI solutions at a fraction of previous costs. By reducing reliance on massive data centres and expensive model training, it lowers barriers to entry and presents a rare opportunity for Europe to regain ground in AI development, provided startups and investors act swiftly

UK-based Synthesia raised $180 million in Series D funding, led by NEA, with participation from investors like WiL and Atlassian Ventures. This brings their total funding to over $330 million, valuing the company at $2.1 billion. The funds will support product development and expansion in North America, Europe, Japan, and Australia. Synthesia is the largest generative AI media company in the UK by valuation and ranks second in the overall AI category.