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

The European startup and venture capital (VC) market, despite the energetic atmosphere at events like the recent Slush conference in Helsinki, has yet to fully recover from the global VC downturn experienced in 2022 and 2023. Data from PitchBook shows that while €43.7 billion was invested in European startups through the first three quarters of 2025, this figure is only on pace to match—not surpass—the investments made in 2023 and 2024. In contrast, U.S. venture deal volumes in 2025 have already exceeded those of the past three years. A more pressing issue for Europe is the significant decline in VC firm fundraising, with only €8.3 billion raised through Q3 2025, marking the lowest level in a decade and a 50-60% drop compared to previous years. This decline is partly due to fewer mega funds closing and a shift toward emerging managers. Despite these challenges, there are signs of a potential turnaround. U.S.