Europe is experiencing a renaissance in VC robotics funding as deal value paces for a record year.
According to PitchBook data, just over €1 billion (about $1.2 billion) has been invested across 84 deals this year. At the current run rate, 2025 could surpass 2021’s peak of €1.4 billion. Deal count has been slower and will likely match last year’s total.
AI has driven a significant increase in robotics investments, unlocking more scalable and commercially viable uses for robotics. With advances in areas such as computer vision and natural language processing, today’s robots can learn and adapt in unstructured environments.
There has also been a push for automation in service industries, hospitals and warehouses to handle labor-intensive, repetitive tasks. This trend is driven by a desire to cut costs amid rising wages and labor shortages.
Among this year’s deals, some areas of robotics garner additional attention from investors.
Hospitals are a fast-growing sector because of rising staff costs and aging populations across Europe. There is a need to improve efficiency, and the ROI potential for investors is significant.
The year’s biggest robotics deal is UK-based surgical robot developer CMR Surgical‘s $200 million fundraising in April. Other notable rounds include a $75 million Series D for Wandercraft. The Paris-based company is developing AI-powered exoskeletons for people with disabilities.
Another area of focus for investors is warehouse automation. Robotic picking systems, inventory management and autonomous mobile robots capable of moving goods across the floor are just some use cases that can reduce delivery times at a lower cost.
Warsaw-based Nomagic is one such startup targeting logistics, raising $44 million in February. German company Sereact raised €25 million a month earlier for its AI software that fully automates pick-and-place processes.
There is also a growing adoption of robotics in defense.Militaries across the globe, particularly in Europe, have been relatively underfunded in recent years and face pressure to modernize and gain technological advantages.
In April, Munich-based ARX Robotics, which develops unmanned ground systems, closed a €31 million Series A.
Besides expanding use cases, government funding for robotics has increased in Europe, supporting startups in the vertical. In 2023, the EU announced it would invest €180 million in breakthrough technologies, including robotics, as part of its Horizon Europe program.
Last year, Germany launched a robotics institute to establish the nation as a leading hub. The institute offers funding, research capabilities and talent development.
Featured image by onurdongel/Getty Images
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