Regional Funding Trends: Where to Look in H2 of 2025

Raising capital and entering new markets go hand in hand. By Q3 2025, the funding environment looks very different depending on where you are, and for expansion-stage B2B companies, those differences directly shape how to plan the next move.

In Europe, activity is picking up again. VC investment in Q2 held steady at around $14.6 billion, with AI and fintech attracting the largest share of capital. However, later-stage funding is still limited compared to the US or Asia. The EU’s new €10 billion Scaleup Europe Fund has been set up to close that gap. For businesses raising in Europe, the practical reality is longer cycles and the need to show alignment with policy priorities like AI, infrastructure, and data.

The Middle East is at the other end of the spectrum. Capital is moving quickly, driven by sovereign wealth funds and diversification agendas. In H1, Saudi Arabia led with $860 million in funding, up 116% from last year. Investors here want companies that can show impact in AI, logistics, or the shift to clean and renewable energy. Those willing to partner with local players often gain an edge in credibility and access.

India remains one of the most consistent funding destinations. Startups raised $5.7 billion in the first half of 2025, with deep-tech investment doubling year on year in the early months. One of the bigger changes has been where the money comes from. Domestic funds and family offices now play a much larger role, with India’s venture capital assets under management rising nearly fivefold over the past decade. That means international entrants can’t rely on global VC relationships alone, the pitch needs to resonate with local investors and reflect Indian customer realities.

Beyond India, Asia is sending mixed signals. VC funding across the region reached $26.2 billion in the first half of the year, the strongest since early 2022, yet still a third lower than last year. At the same time, cross-border investment is surging, up 86% YoY to $15.3 billion, with industrial technology and living sectors drawing the most attention. For leadership teams, Asia offers scale and diversity, but where you focus within the region will shape the kind of investors you attract.

As we close Q3 of 2025, the funding landscape shows sharp contrasts. Europe is steady but selective, the Middle East offers speed if you align with national agendas, India continues to attract capital with a stronger domestic investor base, and wider Asia brings opportunity if you know which markets to prioritise. Fundraising environments often point to where market appetite is strongest. By keeping a close eye on them, companies can make more confident choices about where and how to expand next.