European Venture Report Q1 2026 (PitchBook)

Summary

• European VC deal value reached €21.9 billion in Q1 2026, driven by unprecedented AI deal penetration of 61.3%.p.3
• Deals larger than €25 million comprised 79.2% of total European deal value in Q1 2026, up from 67.1% in 2025.p.4
• European venture debt reached €5.9 billion in Q1 2026, with average deal sizes surging to €90.5 million from €35.9 million in 2025.p.3
• Nontraditional investor participation reached an all-time high of 82.3% of European deal value in Q1 2026.p.9
• European VC exit value totalled €16 billion in Q1 2026, representing an 8.2% YoY decline.p.3
• European VC fundraising reached €3.5 billion across 37 vehicles in Q1 2026, implying an 11.1% YoY growth rate.p.3

Key insights

1. AI investment in Europe reached €13.4 billion in Q1 2026, representing half of the total level seen in all of 2025.p.5
2. Late-stage Series D+ rounds gained share of deal value in Q1 2026 mostly at the expense of Series B rounds.p.4
3. CVC investors were involved in €13 billion of deal activity, accounting for 59.2% of total European deal value in Q1 2026.p.9
4. AI venture debt deal value reached €3.3 billion in Q1 2026, accounting for 56.9% of total venture debt deal value.p.12
5. Around 11,000 VC-backed AI companies in Europe represent nearly one-quarter of all startups on the continent.p.3
6. According to the VC Exit Predictor, 72 European AI companies have a high probability of exiting via IPO.p.12
7. The median European fund size expanded from €50 million in 2025 to €85 million in Q1 2026.p.3
8. The UK & Ireland reasserted fundraising dominance with 34.8% of capital raised in Q1 2026, while the DACH region lagged at 1.1%.p.3