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Laxman Pai, Opalesque Asia: VC investment in Europe held steady in Q1'25 at $18 billion, although deal volume declined from 2,314 to 1,883 quarter-over-quarter, said a study.
The deal volume droped to nine-year low amid geopolitical and economic uncertainty with 1,883 deals recorded - down from 2,314 the previous quarter, according to KPMG Private Enterprise's Venture Pulse.
Despite expectations that deal volume might begin to show a true rebound in Q1'25, the number of VC deals in Europe fell to a nine-year low amid a fresh wave of geopolitical and economic uncertainty driven in part by concerns related to the new US administration's announcement of various tariffs regimes.
Despite the overall plateau in funding value, the number of megadeals increased, signaling a shift towards larger, later-stage investments. Q1 2025 saw five deals exceeding $500 million, up from three in Q4 2024.
On a country level, the UK led European investment activity with $5.5 billion raised, followed by Germany at $2.2 billion and France at $1.7 billion.
VC investment in the UK fell between Q4'24 and Q1'25 as VC investors continued to show a preference for proven startups given the uncertain market conditions and the ongoing lack of exits.
Despite an increase in VC funding in Q1'25, the total number of VC deals in Germany was incredibly low compared to historical norms, with many completed deals coming as follow-on investments from existing i...................... To view our full article Click here
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