Predictions for European Tech in 2025: M&A Trends, Superapp Launch, and IPOs

Switzerland may have an advantage in AI development compared to other countries in the European Union. While the EU has been working on regulations for artificial intelligence, Switzerland hasn’t made a decision yet. Experts predict that Switzerland may opt for technology-neutral regulations that focus on the outcomes of AI use, rather than regulating the technology itself. However, some forces in the country are pushing for closer alignment with the EU’s AI Act. If Switzerland chooses to be less strict than the EU, it could attract more AI companies to set up shop there. Recently, both OpenAI and Anthropic have announced plans to open offices in Zurich, solidifying the city’s reputation as an AI talent hub.

The climate tech sector faced challenges in 2024, with a significant drop in funding in the latter part of the year. Even Northvolt, the most well-funded climate tech company in Europe, filed for bankruptcy in November. This isn’t the first time the sector has faced hurdles, as seen in the ‘cleantech bubble’ between 2006 and 2013. There are talks of a potential rebrand for climate tech, with suggestions like ‘growth tech’ or ‘dynamic resilience tech’ being discussed. The goal is to emphasize the importance of financial viability, in addition to being environmentally friendly. Will 2025 bring a new wave of sustainability startups that are different from what we’ve seen before? Only time will tell.

The concept of a superapp is gaining traction in Europe, with companies like Revolut, Bolt, and Wolt moving towards becoming “everything apps.” For instance, Revolut recently celebrated reaching 50 million customers with a lavish event featuring popstar Charli XCX. With new products being rolled out frequently, it’s likely that Revolut will expand beyond just fintech. Wolt, based in Helsinki, has expressed ambitions to venture into fintech and logistics, in addition to its existing food and grocery delivery services. Bolt, headquartered in Tallinn, operates in numerous cities and countries, offering ride-hailing, car rental, and more. The company is even looking towards self-driving cars and exploring additional services like e-commerce and payment networks.

Quantum startups in Europe have seen a record year in terms of funding in 2024, with significant investments totaling $2.4 billion globally. While European quantum startups raised $669 million last year, funding is expected to surpass that in 2025. The increased interest in quantum computing has led to more well-funded startups working towards making this technology a reality. Major tech companies and governments are also investing heavily in the sector. With the influx of resources, there may be talent battles as startups compete to retain top engineers and scientists.

In France, industrial startups have been an essential part of the country’s re-industrialization strategy, with many receiving public funding. However, in 2024, prominent industrial startup Ÿnsect faced financial challenges in securing its next round of funding. The lack of private investments in industrial startups may continue to be a hurdle in 2025 for other similar companies. Mistral AI, on the other hand, has quickly become one of France’s most valuable AI startups, catching the attention of several US tech giants. With distribution deals with major players like Microsoft and Google Cloud, Mistral AI may consider M&A offers as the competition for advanced AI tools heats up.

The startup ecosystem in France is maturing, especially following President Emmanuel Macron’s recent snap election, which introduced political uncertainty. With less government intervention, startups are faced with demonstrating their ability to thrive independently. While the foundation of the ‘startup nation’ is strong, founders and VCs will need to show that the sector is capable of sustaining itself without heavy government support.

In the realm of fintech, the concept of a superapp is gaining popularity as companies like Revolut, Bolt, and Wolt expand their offerings beyond their initial services. Revolut, for example, celebrated a significant milestone of 50 million customers and continues to introduce new products regularly. Similarly, Wolt and Bolt are exploring additional sectors like fintech, logistics, and even self-driving cars. The trend towards superapps could reshape the landscape of financial services in Europe.