The European startup market's data doesn't match its energy - yet | TechCrunch

"The excitement for the European startup market was hard to ignore at the annual Slush conference in Helsinki last month. But the actual data on the state of the region's venture market shows a different reality. The upshot: the European market has not recovered from the global venture capital reset that occurred in 2022 and 2023. But there is evidence it is on the cusp of a turnaround, including Klarna's recent exit and the region's homegrown AI startups garnering attention from local investors and beyond."

"Investors poured €43.7 billion ($52.3 billion) into European startups in 2025 across 7,743 deals through the third quarter, according to PitchBook data. That means the yearly total is on pace to match - not exceed - the €62.1 billion invested in 2024 and €62.3 billion in 2023. In comparison, U.S. venture deal volume in 2025 had already surpassed 2022, 2023, and 2024 by the end of the third quarter, according to PitchBook data."

"We're on track for around 50% to 60% decline in the first nine months of this year. A lot of that is made up now by emerging managers versus experienced firms, and the mega funds that closed last year haven't repeated this year."

European venture investment through Q3 2025 totaled €43.7 billion across 7,743 deals, placing the year on pace to match the €62.1 billion in 2024 and €62.3 billion in 2023. Deal activity recovery lags behind U.S. momentum, where 2025 deal volume had already exceeded prior years by Q3. The largest weakness is VC fundraising: European firms raised only €8.3 billion through Q3 2025, projecting the lowest annual total in a decade and a roughly 50–60% decline in the first nine months. Positive signals include increased U.S. investor participation, Klarna's exit, and attention to homegrown AI startups.

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