The European startup market’s data doesn’t match its energy — yet

Group 1 - The European startup market is experiencing a slow recovery from the global venture capital reset of 2022 and 2023, but signs of a turnaround are emerging, including notable exits and increased interest in AI startups [1] - In 2025, European startups received €43.7 billion ($52.3 billion) across 7,743 deals by the third quarter, indicating that the total investment is on track to match the previous years but not exceed them [2] - European VC firms raised only €8.3 billion ($9.7 billion) through Q3 2025, which is projected to be the lowest fundraising total in a decade [3] Group 2 - Fundraising remains the weakest area in Europe, with a projected decline of 50% to 60% in the first nine months of 2025, primarily driven by emerging managers rather than established firms [4] - The participation of U.S. investors in European startup deals is increasing, having dropped to 19% in 2023 but showing a steady rise since then [5] - U.S. investors are optimistic about the European market due to lower valuations compared to the U.S., making it a more attractive entry point for investments, particularly in AI technology [6]