European Cybersecurity Startups Are Building Momentum as Investors Look Beyond AI Hype
European cybersecurity startups are attracting sustained investor interest even as broader enthusiasm for pure AI plays has cooled. Funding across the region has held up, with larger early-stage bets and a clear preference for companies solving practical security problems rather than chasing the latest model hype.
In the first quarter of 2026 alone, European cybersecurity firms raised roughly $1 billion in venture capital. Deal sizes have grown while the number of transactions has moderated, signalling that investors are concentrating capital on perceived category leaders. France remains particularly active: Wavestone’s 2026 French Cybersecurity Startup Radar recorded 234 startups and 43 scale-ups, with €304 million raised over the preceding twelve months. Larger rounds above €25 million are becoming more common, and several deals now involve pan-European investors focused on digital sovereignty.
Similar patterns appear in Germany and the Netherlands. German startups are internationalising earlier, often targeting EMEA first, while Dutch platform Eye Security closed a €60 million Series C to expand its human-plus-AI threat response offering. Swiss email security firm xorlab raised €5 million to push into DACH, Benelux and the Nordics. Across the continent, early-stage rounds (pre-seed and seed) continue to dominate deal count, yet the average cheque size has risen sharply.
Regulatory pressure is helping. The NIS2 Directive and DORA rules are forcing organisations to strengthen cyber resilience, creating demand for specialised tools in identity, cloud security, automated compliance and AI-driven detection. At the same time, geopolitical concerns and a desire for European alternatives to US platforms are steering both public and private capital toward homegrown solutions.
The sector is not immune to broader market discipline. Consolidation is underway through acquisitions, and later-stage funding remains selective. Yet the combination of regulatory tailwinds, genuine threat growth (including AI-enabled attacks) and a maturing base of technical founders is giving European cybersecurity companies a clearer path than many pure AI startups currently enjoy. Investors appear to be treating cybersecurity as a structural need rather than a cyclical theme.
For UK and European founders building in this space, the message is encouraging: differentiation, customer traction and regulatory alignment matter more than flashy AI branding. Capital is available for those who can demonstrate real defensive value.
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12. Uber Cuts 3,300 Jobs as It Reshapes the Business for the Robotaxi Era
Uber is cutting approximately 3,300 jobs—around 10% of its global corporate workforce—in its largest restructuring since the pandemic. Chief executive Dara Khosrowshahi framed the move as essential preparation for a future dominated by autonomous vehicles and leaner operations.
In a company-wide email, Khosrowshahi said rapid expansion had created too many management layers and small teams that slowed decision-making. The company will reduce the number of employees sitting seven or more layers below the CEO by 20%, cut “micro-teams” of one or two people by roughly half, and combine several operations groups. Fully remote roles will be limited to about 1% of staff, with most employees expected to work from designated hubs under a three-day office policy.
The savings, estimated by analysts at between $825 million and $2 billion annually, will be redirected toward Uber’s core ride-hailing and delivery businesses and, crucially, its robotaxi ambitions. The company has committed more than $10 billion to autonomous vehicle partnerships and aims to operate robotaxi services in at least 15 cities. Competition is intensifying: Alphabet’s Waymo is expanding independently in several US markets, Tesla continues to push its own robotaxi plans, and Uber’s existing relationships with autonomous operators are under pressure.
The timing reflects a broader industry shift. Traditional ride-hailing depends on large human driver fleets and the management structures that support them. A robotaxi network requires different skills, fewer layers of operational oversight, and heavier investment in technology partnerships and marketplace infrastructure. Uber is positioning itself as the platform that connects riders to whatever autonomous fleet is available, rather than owning the vehicles itself.
This is not the first time Uber has shed staff—6,700 roles went in 2020—but it is the most significant reduction since then. Shares had already been under pressure amid delivery competition and robotaxi uncertainty. The restructuring is intended to free capital and simplify the organisation so Uber can compete more effectively in the next phase of mobility.
For the wider technology sector, the episode underlines how automation is beginning to reshape not only product roadmaps but also corporate headcount and hierarchy. Companies that built large organisations around human-mediated services are now re-engineering themselves for a more software- and robot-driven future.
