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European VC is concentrating; funding this year is pacing ahead of 2025, but across fewer vehicles, and more than half of that money is going to AI startups.

According to PitchBook’s Q2 2026 European Venture Report, deal value reached €44 billion (about $50 billion) in H1, putting the continent’s startups on track to raise 27% more than last year. Of that, €26.5 billion is in the AI sector, where funding has already surpassed last year’s annual total. While AI accounted for 37.9% of deal value in 2025, it now represents 60.3%.

The total number of rounds has dropped. Mega-rounds—worth more than €100 million—accounted for more than half of deal value in Q2, compared to around 37% in 2025.

Seven of the largest-ever European VC deals on record this year. London-based AI infrastructure startup Nscale raised €2.9 billion in funding this year, making it the region’s largest deal. AI drug designer Isomorphic Labs‘ $2.1 billion Series B and German robotics developer Neura Robotics‘ $1.4 billion Series C also make the list.

It’s not just the later stages that are seeing hefty rounds. This year, two startups have closed seed rounds of $1 billion or more. French world model developer AMI Labs secured $1.03 billion in Europe’s largest-ever seed investment in March, only to be surpassed by London-based AI lab Ineffable Intelligence‘s $1.1 billion round a month later.

The concentration in capital is extending to investors. Capital raised in H1 reached €8.2 billion, pacing 32.8% above last year, while fund count continues to fall. The median size of a European VC vehicle has jumped to €60 million this year, compared to €50 million in 2025.

Paris-based biopharma-focused Jeito Capital‘s $1.2 billion second fund was the largest to close this year and the only fund to have raised more than €1 billion. London-based Hummingbird Ventures‘ $600 million growth fund followed.

While capital is flowing into fewer funds, it is not just being reserved for experienced managers. Emerging VCs accounted for 52.8% of capital raised, and they are pacing ahead of last year’s total by a larger percentage than experienced firms.

This article originally appeared on PitchBook News