February offered an unusual reading: the most heavily regulated sectors insurance, medical devices — health, accounted for the most relevant funding rounds of the month. Not despite regulation, but in many cases because of it. The AI Act, the European MDR, a nd increasing compliance pressure are no longer acting as external constraints; they are becoming investment criteria. The result is clear: when properly understood, regulatory complexity is creating entirely new business categories.
Where is the capital when headlines say there isn’t any?
Spain closed February with €138.52M across 23 deals, the lowest level in years, with the top three rounds concentrating more than 60% of total capital. At a European level, the picture was more dynamic: €7.8B across 296 deals, an 11.7% increase in deal cou compared to January. nt The combined reading is clear: capital has not disappeared, but it has reshaped its distribution. In a more selective environment, clear theses and structurally advantaged assets attract the majority of funding, while projects without proven traction face longer fundraising cycles and stricter entry criteria.
European CVC gains weight as a visible part of the market
Sifted reported that corporate venture capital (CVC) vehicles participated in more than 1,400 equity deals in Europe during 2025, with 84 firms completing at least three investments. At the same time, the EIC Corporate Partnership Programme has facilitated over 100 business agreements between startups and corporations such as BMW, L’Oréal, and Telefónica since 2017. The value of CVC compared to traditional venture capital is not abstract. It translates into a greater ability to provide access to relevant corporate environments, validate solutions in real sector contexts, enable pilot projects with clear business logic and integration potential, and support startups operating in regulated industries where the time between validation and adoption can determine viability. In sectors like health, insurance, or deathcare, this support can significantly accelerate market entry.
In digital health, compliance is no longer a cost — it is the product
Three February rounds point in the same direction: Biorce (Barcelona) raised $52.5M to apply AI to clinical trials; Flinn (Vienna) secured $20M to automate quality and compliance in medtech; and Klaris (London) closed a $1M Preseed round focused on regula management for medical device manufacturers. tory In all three cases, the value lies not in the visible clinical product, but in the operational and regulatory efficiency layer that supports it. In a market shaped by the European MDR and the AI Act, platforms that reduce regulatory friction are emerging a s a standalone investment category — not as a complementary service.
Petcare and insurtech converge — and the policy is no longer the only product
Lassie (Sweden) closed a $75M Series C round backed by Balderton Capital and Felix Capital to scale its pet insurance and preventive care platform across Europe. At the same time, General Magic raised $7.2M to improve customer experience at critical moments in the insurance lifecycle, while global insurtech investment exceeded $1B in February, with AI as the dominant thesis. From GCO Ventures’ perspective, this convergence is particularly relevant. It points toward models where value is no longer concentrated solely in the insurance policy, but in the ability to combine protection, service, and continuous customer insight. For insurance based operators, this shift defines where value will be built in the coming years.
A maturing market, not a shrinking one
February leaves a market signal worth noting: increased capital selectivity and greater emphasis on execution in complex sectors. The ecosystem is not lacking ideas; it is maturing. Clarity of thesis and the ability to operate in regulated environments now matter more than narrative. The underlying signal is a growing preference for complex problems and business models with real barriers to entry. From GCO Ventures’ perspective, this reinforces a key idea: in regulated sectors, value is created not only in the visible product, but also operational, validation, and integration layers that make it viable. in the
Come back next month for more analysis on venture capital, startups, and the sectors where GCO Ventures builds and invests.
