Dec 24, 2025
Data from PitchBook, as reported by TechCrunch, reveals the European venture market has not recovered from the global reset of 2022 and 2023, though it may be nearing a turnaround. Investors deployed EUR43.7 billion ($52.3 billion) into European startups across 7,743 deals through the third quarter of 2025, putting the yearly total on pace to match, but not exceed, the EUR62.1 billion invested in 2024 and EUR62.3 billion in 2023.
In contrast, U.S. venture deal volume in 2025 had already surpassed the totals from 2022, 2023, and 2024 by the finish of the third quarter. Europe’s more significant challenge is venture capital firm fundraising, which through Q3 2025 stands at a mere EUR8.3 billion ($9.7 billion), putting the region on track for its lowest yearly total in a decade.
“Fundraising, LP to GP, is definitely the weakest area within Europe,” PitchBook senior analyst Navina Rajan declared. “We’re on track for around 50% to 60% decline in the first nine months of this year. A lot of that is created up now by emerging managers versus experienced firms, and the mega funds that closed last year haven’t repeated this year.”
Signs of a Potential Turnaround
Despite the fundraising decline, Rajan pointed to positive indicators, including the rising participation of U.S. investors in European deals. That figure dipped to a low of 19% in 2023 but has been steadily increasing since. “They seem pretty optimistic on the European market,” Rajan declared. “Just from an enattempt point of view, becaapply you consider about valuations, especially within AI tech and in the U.S., it’s just impossible to obtain in now, whereas, if you’re in Europe and your multiples are lower, and you’re new as an investor, it just provides a better enattempt point for perhaps similar tech.”
The recent $330 million Series B round for Swedish vibe-coding startup Lovable, led and participated in by U.S.-based VCs including Salesforce Ventures, CapitalG, and Menlo Ventures, exemplifies this shift.
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