tech
December 24, 2025
The European startup market's data doesn't match its energy — yet
Europe's startup market hasn't produced meaningful numbers but there is reason to believe the data will start to change.
TL;DR
- European venture market has not recovered from the 2022-2023 reset.
- Investment in European startups is on pace to match, not exceed, previous years.
- VC firm fundraising in Europe is at its lowest in a decade.
- U.S. investor participation in European startup deals is increasing.
- Lower valuations in Europe, especially in AI, offer attractive entry points for U.S. investors.
- Notable examples of European startups attracting U.S. investment include Lovable and Mistral.
- Klarna's recent IPO signals a potential turnaround and capital recycling.
- European founders are increasingly adopting a global mindset, aiming to win worldwide markets.
- Firms like EQT are demonstrating strong commitment to investing in Europe.
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